INVESTMENT AND TAXATION IN PERIOD OF ECONOMIC CRISIS
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
BACKGROUND TO THE STUDY
Investment inflow, particularly foreign investment is perceived to have a positive impact on economic growth of a host country through various direct and indirect channels. Domestic investment is crucial to the attainment of sustained growth and development (Ekpo, 1997).To invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future.
Generally, the expected future benefit from investment is called a return (to investment). The return may consist of capital gain and/or investment income, including dividends, interest, rental income etc. The economic return to an investment is the appropriately discounted value of the future returns to the investment. Investment generally results in acquiring an asset, also called an investment (Ekpo, 1997). If the asset is available at a price worth investing, it is normally expected either to generate income, or to appreciate in value, so that it can be sold at a higher price (or both).
Investors generally expect higher returns from riskier investments (Obadan, 2004). Financial assets range from low-risk, low-return investments, such as high-grade government bonds, to those with higher risk and higher expected commensurate reward, such as emerging markets stock investments. Consequently, many developing countries, Nigeria included, have offered generous incentives to attract foreign inflows, also geared towards the same end creating an investor-friendly environment. Some foreign firms have taken advantage of the incentives to satisfy their various motives of ensuring stable monopolistic control over sources of raw materials for their parent companies, access to control of local markets, utilizing low cost labour and realizing the possibility of higher returns, Nigeria also received very low proportions of global investment inflows, inspite of its being blessed with enormous human and natural resources (Obadan, 2004). This is perhaps because the economy was perceived by investors as a high-risk market for investment.The foreign investor may acquire 10% or more of the voting power of an enterprise in an economy through; incorporating a wholly owned subsidiary or company, acquiring shares in an associated enterprise, through merger or an unrelated enterprise and, participating in an equity joint venture with another investor. Investment incentives may be in form of 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, usually for very large projects (Obadan, 2004).
On the other hand, taxation is an essential part of a country’s investment and growth plan. Tax is a compulsory levy imposed on a subject or upon his property by the government to provide security, social amenities and create conditions for the economic well-being of the society (Appah, 2004; Appah and Oyandonghan, 2011). The funds provided by tax are used by the states to support certain state obligations such as education systems, health care systems, and pensions for the elderly, unemployment benefits, and public transportation. The researcher is of the opinion that both investment and taxation can be used as a tool for Nigeria development during the economic crisis.
1.2 STATEMENT OF THE PROBLEM
Attempts at developing the investment sector of the Nigerian economy have been based on the need to maximize the potential benefits derived from them; and to minimize the negative effects their operations could impose on the country. This has been assured by reducing the level of taxation of investment. As a result of the persistent global panic, unemployment has been on the rise, jobs are being lost, there is shortage of liquidity and acute scarcity of credit has remained visible in the financial institutions. For Nigeria to pull through this economic crisis,the nation must generate more investment, efforts should be made at solving problems of government involvement in business; relative closed economy; corruption; weak public institutions; and poor external image. From these foregoing, it is necessary to examine the role of investment and taxation in the period of economic crisis in Nigeria.
Related Project Materials
NURSING STUDENTS’ PERCEPTI ONS OF CLINICAL NURSING TRAINING IN SELECTED NURSING PROGRAMMES IN ENUGU STATE
ABSTRACT
This study is aimed at assessing the nursing students’ perceptions of clinical nursing t...
IMPACT OF COOPERATIVE LEARNING STRATEGY ON PROCESS SKILLS ACQUISITION AND PERFORMANCE IN CHEMISTRY AMONG SECONDARY SCHOOL STUDENTS, ZARIA KADUNA STATE, NIGERIA
ABSTRACT
This study investigated the impact of cooperative learning strategy on process skills acquisition and performance in chemistry a...
ETHNO-RELIGIOUS CONFLICTS IN NIGERIA; ISSUES, CHALLENGES AND SOLUTIONS
ABSTRACT
This study was carried out to examine Ethno-Religious Conflicts In Nigeria; Issues,...
THE INFLUENCE OF SMART PHONES AND SOCIAL NETWORKING SITE ON THE ACADEMIC PERFORMANCE OF SENIOR SECONDARY SCHOOLS STUDENT
Abstract
The study investigated the influence of smart phones and social networking sites on the academic performance of...
SURVEY OF THE EFFECTS OF TRAINING AND DEVELOPMENT ON THE PRODUCTIVITY OF SECRETARIAL STAFF AT UNION BANK OF NIGERIA PLC
ABSTRACT
One of the main ways organizations invest in the work force for greater returns today and even future is throug...
PROBLEM OF PROVISION OF PUBLIC CONVENIENCE IN URBAN CENTRE
Abstract
Public conveniences are crucial infrastructure necessary for social well-being and practical operation of a fun...
EMPLOYMENT PROCEDURE AND ITS EFFECT ON GOVERNMENT PARASTATALS
-
- STATEMENT OF THE PROBLEM
Human resource is the soil of any organization....
ASSESSMENT OF GOVERNMENT RESPONSE TO FLOOD DISASTER IN KEDE FLOODPLAIN IN MOKWA LOCAL GOVERNMENT AREA, NIGER STATE
ABSTRACT
Kede floodplain is under constant threat of devastating floods annually. The rural dwellers adopted strategies and even the gove...
ASSESSMENT OF THE ADVENT AND DEVELOPMENT OF ISLAM AMONG JUKUN PEOPLE IN SOUTHERN TARABA, NIGERIA
ABSTRACT
The research titled Assessment of the Advent and Development of Islam among Jukun People in Southern Taraba, Taraba State Nigeri...
CHALLENGES OF RURAL AND COMMUNITY DEVELOPMENT IN NIGERIA
Abstract
The rural poor are really non-beneficiaries of the enormous development efforts of the past three decades. Thi...
