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ABSTRACT
An empirical study using a well structured questionnaire survey, the work assesses the relationship that exists between tax incentive and economic development in Nigeria. This study was undertaken primarily to evaluate the effectiveness of tax incentive in developing the Nigerian economy. One hundred and twenty questionnaires were administered on member of staff of twelve different incorporated companies in Lagos and hypotheses formulated were tested with the use of chi-square method. It was found that tax incentive would enhance economic growth and development in Nigeria, if such incentives are well focused and extended to all deserving companies in the country. Suggestions were mark as to variables moderating the tax incentive and economic development.
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