TRANSFER PRICING AND ECONOMIC GROWTH IN NIGERIA

Abstract

In all economies, transfer pricing is seen as a rider and a means for capital flight.  The study attempts to unveil whether, in Nigeria, transfer pricing affects economic growth significantly. In order to achieve the purpose, empirical review of previous studies was made and hypotheses were formulated. Data gathering was done using four Likert scale questionnaire from eighty-seven (87) respondents.  Then, it was analysed on the SPSS platform using Pearson Model. The result confirmed that in Nigeria, transfer pricing affects economic growth significantly and negatively with 0.011 probability value and -0.570 correlation value. Also, trade mis-invoicing practices affect GDP significantly and negatively with 0.001 probability value and -0.641 correlation value. The study came into the conclusion that in Nigeria, transfer pricing affects economic growth. The recommendations are that technological and human machineries with adequate sensitization to ensure effective transfer pricing laws in Nigeria be put in place by the relevant authority and that stiff measures should be introduced with the sole aim of curbing trade mis-invoicing practices using enforcement measures