Evaluating the Effect of Tax Incentives on Industrial Development in Kano State

This study investigates the effect of tax incentives offered by federal and state governments on industrial development in Kano State, one of Nigeria's foremost commercial hubs in the North West geopolitical zone. Industrial tax incentives, including pioneer status grants, import duty waivers, and capital allowances, are designed to attract investment and stimulate manufacturing activity. However, empirical evidence of their effectiveness at the subnational level remains limited in the Nigerian context. Using a descriptive research design, the study collects primary data through structured questionnaires administered to 150 manufacturing firms registered with the Kano State Ministry of Commerce and Industry. Secondary data are obtained from the Federal Inland Revenue Service and the Nigerian Investment Promotion Commission. Data are analysed using descriptive statistics and simple regression. Preliminary findings suggest that while awareness of available incentives is relatively high, utilisation rates are low due to bureaucratic processes and inadequate information dissemination. The study concludes that tax incentives, when properly communicated and efficiently administered, have a positive influence on industrial output and employment generation. Policy recommendations include streamlining the application process for pioneer status, creating a dedicated taxpayer advisory desk for industrialists, and establishing transparent criteria for incentive allocation. This research offers undergraduate-level insight into the intersection of fiscal policy and economic development in Nigeria's northern industrial corridor. Keywords: tax incentives, industrial development, pioneer status, Kano State, manufacturing.