Sectoral analysis reveals significant effects of tax legislation on initial and annual allowances across industrial firms, suggesting capital allowances shape operational and financial performance.
This study examined Nigerian tax law and capital allowances. Nigerian Tax Act was employed to measure Nigerian tax law while capital allowance was measured by initial allowance and annual allowance. The study conceptually focused on the manufacturing, oil and gas, utilities and mining and information and communication technology (ICT) sectors. The outcome demonstrates that the NTA significantly affects the initial and annual allowances of the sectors under consideration. Thus, the study concludes that capital allowances may impact the performance of Nigerian industrial firms, the oil and gas sector, and ICT. To improve the operational efficiency and financial performance of Nigerian businesses, the study recommends that the government of Nigeria continue to assess the capital allowances that these businesses get and grant additional capital allowances to more businesses
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Ajibola et al. (2026) studied this question.
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