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The Impact of Petroleum Tax Incentives on Foreign Direct Investment Inflow: Evidence from Nigeria

Author

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  • Adam Konto Kyari

    (Department of Accounting, College of Business Administration, Imam Abulrahman Bin Faisal University, Dammam, Saudi Arabia.)

Abstract

Recent events in the Nigerian oil and gas industry has called to question the appropriateness of the Nigerian petroleum tax incentives in attracting foreign direct investments into the nation s oil and gas sector. There were instances of multinational oil companies relocating to other countries due to uncertainty of operating environment. As a result, this study investigates whether the Nigerian petroleum tax incentives package is appropriate in attracting foreign direct investments. Data was collected via a five point Likert questionnaire and analysed using descriptive statistics and Kruskal-Wallis technique. The study revealed, among others, that Nigeria s petroleum tax incentive package is sufficient in number and appropriate in mix in attracting foreign direct investment. This study concludes that Nigeria s petroleum tax incentive package is suitable in attracting foreign direct investments. Equally, the study concludes that the tax incentives is sufficient in number and appropriate in mix in attracting foreign direct investments in into the nation s oil and gas industry Finally, the study recommends further study on other possible ways of attracting inflow of FDI into the Nigerian oil and gas industry.

Suggested Citation

  • Adam Konto Kyari, 2020. "The Impact of Petroleum Tax Incentives on Foreign Direct Investment Inflow: Evidence from Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 516-524.
    • Handle: RePEc:eco:journ2:2020-04-64
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    References listed on IDEAS

    as
    1. World Bank, 2013. "Nigeria Economic Report, No. 1, May 2013," World Bank Publications - Reports 16568, The World Bank Group.
    2. T. R. Stauffer & John C. Gault, 1985. "Exploration Risks and Mineral Taxation: How Fiscal Regimes Affect Exploration Incentives," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    3. Ethier, Wilfred J. & Horn, Henrik, 1990. "Managerial control of international firms and patterns of direct investment," Journal of International Economics, Elsevier, vol. 28(1-2), pages 25-45, February.
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    Cited by:

    1. Sugra Humbatova & Afag Huseyn & Natig Gadim-Oglu Hajiyev, 2023. "Impact of Oil Factor on Investment: The Case of Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 129-148, March.

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    More about this item

    Keywords

    Foreign; investments; oil; gas; taxation; incentives;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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