Abstract
This study examined the effect of capital allowance on manufacturing companies in Enugu state Nigeria. The study adopted the Survey research design while the primary source of data was the source of data engaged for the purpose of this study. Forty-five Staff members from three Accounting units of three manufacturing companies in Enugu state Nigeria were administered copies of the questionnaire. The study tested the research hypotheses with Z test statistical tool with the aid of the Statistical Package for Social Sciences (SPSS). Findings from this study revealed that Annual allowance have significant effect on the profitability of manufacturing companies in Enugu state. The study also revealed that initial allowance does not have significant effect on the efficiency of manufacturing companies in Enugu state. The study consequently recommends that all manufacturing companies in Enugu state should endevour to engage the services of professional Accountants for the purpose of maximum performance which are necessary for its survival and sustainability. It further recommends that, manufacturing companies in Enugu via their competent Accountants and Management should apply for annual and initial allowance as at when due on qualifying capital expenditure of the companies.