Key points
- Nigeria and Hong Kong have signed a double taxation agreement.
- The treaty aims to eliminate double taxation and curb tax evasion.
- Officials say the agreement will support trade, investment and cross-border business.
- The deal forms part of Nigeria’s strategy to expand its international tax treaty network.
Main story
Nigeria and the Hong Kong Special Administrative Region of the People’s Republic of China have signed an agreement to eliminate double taxation on income and strengthen cooperation against tax evasion and avoidance.
The agreement was signed virtually by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui.
Speaking during the ceremony, Oyedele described the agreement as an important milestone in the growing economic relationship between both jurisdictions and reaffirmed Nigeria’s commitment to building a transparent, predictable and investor-friendly tax system.
He said the treaty would create a more conducive environment for cross-border trade and investment while supporting Nigeria’s efforts to strengthen economic ties with Asian markets.
According to the minister, Hong Kong’s position as a global financial and commercial hub presents opportunities to expand private sector engagement and deepen commercial partnerships between businesses in both jurisdictions.
Oyedele commended the negotiating teams for reaching a balanced agreement that aligns with international best practices while protecting the interests of both parties.
He also thanked the Hong Kong government and other stakeholders who contributed to the successful conclusion of the negotiations.
The agreement is expected to eliminate double taxation on income earned in both jurisdictions, provide greater certainty for businesses and investors, and strengthen cooperation in tackling tax evasion and avoidance.
The issues
Double taxation agreements are designed to remove tax barriers to international business by ensuring that income is not taxed twice while improving certainty for investors and strengthening cross-border economic cooperation.
What’s being said
“The conclusion of the Agreement is timely, as Nigeria continues to deepen its integration into global value chains and expand its economic partnerships across Asia.” — Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy
What’s next
The agreement is expected to enter into force after both jurisdictions complete their respective ratification processes, paving the way for its implementation.
Bottom line
The new tax treaty is expected to improve Nigeria’s investment climate, strengthen economic ties with Hong Kong and support greater cross-border trade and investment.
