Nigeria and Hong Kong Finalise Double Taxation Agreement to Spur Investment and Economic Ties

Nigeria and the Hong Kong Special Administrative Region (HKSAR) of the People’s Republic of China have formalised a Double Taxation Agreement (DTA), a significant development poised to bolster trade, investment, and economic cooperation between the two jurisdictions. The pact aims to eliminate double taxation on income and prevent tax evasion and avoidance, offering greater clarity and security for businesses and investors.

The agreement was executed via a virtual ceremony on Sunday, with Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, signing on behalf of the Federal Republic, and the Secretary for Financial Services and the Treasury of the HKSAR, Mr. Christopher Hui, representing Hong Kong.

Minister Oyedele underscored the agreement as a pivotal milestone in the expanding economic and commercial relationship between Nigeria and Hong Kong. He emphasised that the treaty reflects Nigeria’s dedication to fostering a transparent, predictable, and investor-friendly tax environment, crucial for supporting trade, investment, and sustainable economic growth. Despite the virtual nature of the signing, the profound significance of the pact was highlighted, demonstrating a shared commitment to enhancing economic cooperation and cultivating a more favourable climate for cross-border commerce and investment.

This DTA arrives at a critical juncture for Nigeria as it intensifies its integration into global value chains and seeks to broaden economic partnerships across Asia. Hong Kong, recognised as a premier international financial and commercial hub, is expected to see increased private sector engagement and new avenues for mutually beneficial investments as a direct result of this treaty. Minister Oyedele commended the negotiating teams from both nations for their professionalism and diligence, noting that their efforts yielded a balanced agreement that adheres to international best practices while safeguarding the legitimate interests of both Nigeria and Hong Kong. He also extended his gratitude to the HKSAR Government and other stakeholders instrumental in the agreement’s successful conclusion.

According to a statement released by Mrs. Mary-Ann Okon, Senior Special Assistant on Communications and Press Secretary to the Minister of Finance, the DTA is designed to provide substantial certainty for businesses and investors by eliminating the burden of double taxation and curbing illicit tax practices. This agreement forms an integral part of Nigeria’s broader strategy to expand its network of international tax agreements, attract foreign direct investment, promote global tax cooperation, and stimulate increased trade with key international partners.

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