Tax incentives and economic growth in Nigeria: a paradox?

This study aims to ascertain whether tax incentives in Nigeria have in reality contributed to her economic growth or the purported growth from the granting of tax incentives is a paradox. Analysis of secondary data on identified tax incentives and real GDP values for the period 2000 to 2017 using the OLS shows that tax incentives granted by Nigeria has no influence on Nigeria’s real GDP as the incentives were static throughout the study period. A Satterthwaite Welch t-test, the Welch F-test and the ANOVA F analysis of real GDP showed that there exists a statistical difference between real GDP 19 years before the introduction of varied tax incentives in 2000 and 19 years after, but the difference is not attributed to the introduction of varied the static tax incentives regime. Therefore, the purported growth in real GDP in Nigeria from tax incentives is a paradox.