How Can Tax Allowances Promote Investment In The Nigerian Petroleum Industry?
Bede O.N Nwete bon_law@yahoo.co.uk ABSTRACTThe problem of promoting investment in the Nigerian Petroleum Industry seems to grow with its importance in the Nation’s economy. This paper analyses the reason behind this by examining the need for a special fiscal regime for the industry. It also takes a look at the objectives of petroleum taxation, highlighting the role and importance of tax allowances in the industry. In examining the Nigerian Fiscal Regime for Petroleum especially with the Petroleum Profit Tax Act (cap.354 Laws of the Federation of Nigeria, 1990), the Deep Offshore and Inland Basin Production Sharing Contract Decree (No. 9 of 1999 as amended), and other legislations, it shows why the tax allowances and incentives have failed to make the desired impact in the Industry, highlighting the constraints and limitations to their workability. In suggesting the way forward, it reviews the global trend and shows how tax allowances can be made to promote investment in the Nigerian Pe
