A LEGAL APPRAISAL OF TAX INCENTIVES IN THE NIGERIAN AGRICULTURAL SECTOR

Abstract

Agriculture is sine qua non for economic growth and development. Historically, agriculture was the mainstay ofthe Nigerian economy accounting for well over half of the country’s Gross Domestic Product (GDP), and yieldingthe highest value in export earnings until the discovery of crude oil in 1956 which turned the nation to a nearmono economy, relying heavily on the revenue from crude oil export. In order to stimulate and diversify theeconomy, some measures were employed by the Nigeria government including the introduction of tax incentives.Tax incentives, succinctly put, refers to the policies and measures initiated by government to encourageenterprises and individuals to spend or save money by reducing the sum total of tax payable to government. Thispaper critically evaluates the impacts of tax incentives on the Nigerian agricultural economy. The methodologyadopted by the researcher is doctrinal, while data are obtained from both primary and secondary sources.Findings reveal that tax incentives, if properly channeled and made available to deserving enterprises andindividuals, would ultimately enhance growth and economic development in Nigeria. The paper concludes withrecommendations centred around sensitization of individuals and businesses on the availability of tax incentives,effective implementation, and balanced tax incentivization scheme.