Finance Act, 2020 and Improved Public Capital
Expenditure in Nigeria

This paper examined the finance Act, 2020 and improved public capital expenditure in Nigeria. It sought to highlight the
implications of finance Act, 2020 on improvement of public capital expenditure in Nigeria. Specifically, the paper
examined the implications of VAT rate increment, companies’ segmentation in relation to CIT rate, provisions of VAT
compliance threshold, and miscellaneous provisions on improved funding of capital projects in Nigeria that could pave
way for inclusive economic growth and development in the country. This paper though, theoretical, adopted descriptive
approach and reviewed relevant literature. It concluded that the finance Act would reform domestic tax law to align global
best practices; introduce tax incentives for investment in infrastructure and capital markets; support small businesses in
line with the ease of doing business reforms; and improve revenue for government at all levels for financing capital
projects, subject to provisions of favourable framework and capacity. The paper recommended demonstration of strong
political will by government, strengthening government institutions, stamping out corruption, and embarking on
continuous training and retraining of staff and management of agencies involved in the implementation of the new Act.