BACKGROUND TO THE STUDY
Investment inflows, particularly foreign investment, are thought to have a favourable influence on a host country's economic growth via several direct and indirect pathways. According to Okpe.(2016), domestic investment is critical to achieving long-term growth and development. Thus investing is the allocation of money (or occasionally another resource, such as time) with the hope of future gain. A return is the predicted future gain from an investment (to investment). The return may include capital gains and/or investment income such as dividends, interest, rental income, and so on. The economic return on an investment is the suitably discounted value of the investment's future returns. In most cases, investing culminates in the acquisition of an asset, often known as an investment (Ekpo, 2017). If an asset is offered at a reasonable price, it is usually expected to create income or to increase in value, allowing it to be sold at a greater price (or both).
Writing on investment, Appah, & Oyandonghan (2019) asserts that Riskier investments are often expected to provide better returns by investors. Where financial assets span from low-risk, low-return investments like high-grade government bonds to higher-risk, higher-reward investments like emerging market stock investments. As a result, many developing nations, including Nigeria, have given considerable incentives to attract foreign inflows, with the goal of fostering an investor-friendly environment. Some foreign firms have taken advantage of the incentives to satisfy their various motives, including ensuring stable monopolistic control over raw material sources for their parent companies, access to control of local markets, utilizing low-cost labour, and realizing the possibility of higher returns. Nigeria has also received very low proportions of global investment inflows, despite being endowed with enormous human and natural resources (Obadan, 2004). This might be because investors saw the economy as a high-risk investment market. A foreign investor may acquire 10% or more of an enterprise's voting power in an economy by creating a completely owned subsidiary or firm, purchasing shares in an affiliated enterprise, through merger or an unconnected enterprise, and investing in an equity joint venture with another investment. Low corporate and income tax rates, tax holidays, other types of tax concessions, preferential tariffs, special economic zones, investment financial subsidies, soft loan or loan guarantees, free land or land subsidies, relocation and expatriation subsidies, job training and employment subsidies, infrastructure subsidies, research and development support, and derogation from regulations are all examples of investment incentives (Obadan, 2004 cited in 2015).
Taxation, on the other hand, is a crucial component of a country's investment and growth strategy. A tax is a mandatory charge imposed by the government on a subject or his property in order to provide security, social amenities, and to establish circumstances for the economic well-being of society (Appah, 2004; Appah and Oyandonghan, 2011). The revenues generated by taxes are used by states to finance state duties such as education, health care, and pensions for the aged, unemployment benefits, and public transit. The researcher believes that both investment and taxation may be utilized to help Nigeria thrive during the current economic crisis.
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