The Federal Republic of Nigeria and the Hong Kong Special Administrative Region of the People’s Republic of China today signed a Comprehensive Double Taxation Agreement (CDTA) aimed at eliminating double taxation on income, preventing tax evasion and avoidance, and significantly enhancing bilateral trade and investment flows.
The agreement was signed during a virtual ceremony by Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, and Hong Kong’s Secretary for Financial Services and the Treasury, Mr. Christopher Hui.
“This agreement represents a major milestone in strengthening economic ties between Nigeria and Hong Kong,” said Minister Taiwo Oyedele. “By removing tax barriers, we are creating a more predictable and attractive environment for businesses and investors from both sides. This will facilitate greater cross-border trade, encourage foreign direct investment, and support Nigeria’s ongoing economic diversification efforts.”
The CDTA provides relief from double taxation for residents of both jurisdictions, allowing taxes paid in one territory to be credited against tax liabilities in the other. It covers key areas such as business profits, dividends, interest, royalties, and capital gains, while incorporating robust provisions to prevent tax evasion and avoidance.
Hong Kong Secretary Christopher Hui noted: “Hong Kong is committed to expanding its network of double taxation agreements to foster international business. This agreement with Nigeria, Africa’s largest economy, opens new opportunities for Hong Kong businesses in sectors such as finance, infrastructure, energy, technology, and trade. It underscores Hong Kong’s role as an international financial and investment hub bridging Asia and Africa.”
Key Benefits of the Agreement: Certainty for Investors: Clear rules on taxing rights reduce uncertainty for companies operating in both markets..Investment Promotion: Encourages Nigerian businesses to expand into Asia and Hong Kong investors to explore opportunities in Nigeria’s growing sectors including oil and gas, agriculture, fintech, and renewable energy.
Trade Facilitation: Supports increased two-way trade by lowering the overall tax burden on cross-border transactions. Anti-Avoidance Measures: Strengthens international cooperation in tax matters while maintaining legitimate business activities.
The agreement aligns with global standards and is expected to enter into force following necessary ratification procedures in both jurisdictions. This development further reinforces Nigeria’s commitment to improving its business environment and Hong Kong’s strategy to deepen economic partnerships across emerging markets.