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Nigeria and Hong Kong have signed a landmark Taxation Agreement to eliminate multiple taxation on cross-border income. to boost investor confidence
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The agreement is designed to attract more foreign direct investment and also remove tax-related barriers that often discourage cross-border trade and investment
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Finance Minister Taiwo Oyedele described the treaty as a major milestone in Nigeria’s expanding economic partnership with Hong Kong
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The pact strengthens Nigeria’s international tax treaty network while enhancing efforts to combat tax evasion and tax avoidance
July 14, (THEWILL) — The Federal Government of Nigeria (FGN) has signed a landmark Double Taxation Agreement (DTA) with the Hong Kong Special Administrative Region (HKSAR) of the People’s Republic of China in a major step towards attracting foreign investment, boosting bilateral trade, and eliminating multiple taxation on cross-border income.
The pact, titled the “Agreement for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance”, was signed during a virtual ceremony on Monday 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.
The treaty is expected to provide greater certainty for businesses and investors operating in Nigeria and Hong Kong by ensuring that the same income is not taxed twice, while strengthening measures to curb tax evasion and tax avoidance.
Speaking at the signing ceremony, Oyedele described the agreement as a significant milestone in the growing economic relations between Nigeria and Hong Kong, saying it underscores the Federal Government’s commitment to building a transparent, predictable, and investor-friendly tax system capable of supporting sustainable economic growth.
According to the minister, the agreement comes at a strategic period as Nigeria seeks to deepen its integration into global value chains and expand economic partnerships across Asia.
He noted that Hong Kong’s status as one of the world’s leading international financial and commercial centres makes the treaty particularly important for unlocking new investment opportunities and facilitating stronger commercial relations between the private sectors of both jurisdictions.
Oyedele expressed confidence that the agreement would remove tax-related obstacles to investment, encourage cross-border business activities, and create fresh opportunities for mutually beneficial partnerships between Nigerian and Hong Kong enterprises.
He also commended the negotiating teams from both governments for what he described as their professionalism, dedication, and constructive engagement throughout the negotiation process.
According to him, their efforts produced a balanced and forward-looking agreement that aligns with international best practices while safeguarding the legitimate fiscal interests of both jurisdictions.
The minister further conveyed the appreciation of the Federal Government and the people of Nigeria to the Government of the Hong Kong Special Administrative Region and all stakeholders whose contributions culminated in the successful conclusion of the treaty.
In a statement, the Federal Ministry of Finance said the agreement forms part of Nigeria’s broader strategy to expand its network of international tax treaties, strengthen global tax cooperation, and improve the country’s attractiveness as a destination for foreign direct investment.
The ministry explained that beyond eliminating double taxation, the treaty is designed to prevent tax evasion and tax avoidance, provide a stable and predictable fiscal framework for cross-border investments, and promote increased trade between Nigeria and Hong Kong.
The agreement is expected to enhance investor confidence by reducing tax uncertainties for companies with operations in both jurisdictions while supporting Nigeria’s ongoing economic reforms aimed at improving the ease of doing business and expanding international commercial partnerships.
THEWILL reports that the agreement will take effect after the completion of the ratification processes by both Nigeria and the Hong Kong Special Administrative Region in accordance with their respective domestic laws.
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