The quest for industrial development in the post-independent era of Nigeria is considered a priority for
achieving economic growth and social development. This article examines two aspects of Nigeria’s
industrial/ economic development: the industrial development income tax relief of 1971 and foreign
direct investment (FDI) inflow into Nigeria over decades preceding and after the introduction of the
former legislation. Framing the analysis on the growth pole theoretical conceptualization and using
methods of description and case study we obtained and analysed secondary data to show the trend of
Nigeria’s manufacturing sector’s poor performance after the industrial development income tax relief
was promulgated and administered in 1971. Nigeria’s manufacturing has been blighted by poor
industrial capacity utilization, slow growth rate of manufacturing and low contribution of manufacturing
sector to the total national gross domestic product (compared to other sectors of the economy such as
peasant agriculture). FDI inflow into Nigeria increased sharply from a lower level in the 1960s to higher
levels in the post-civil war decade (1971-1980). The low levels of industrial development and variation in
FDI inflow prior to and after the industrial development tax legislation as well as the failure of Nigeria’s
iron and steel industrial development programme are explicated. The policy implications of the findings
of this study underline the urgency of tackling corruption perpetrated by Nigeria’s parasitic elite who
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have abused legal and other incentives provided industrialists by governments they dominate and
influence since independence in 1960.