Nigeria and Hong Kong Sign Major Deal to Stop Double Taxation, Boost Investment
By Patience Ikpeme
Doing business between Nigeria and Hong Kong is about to get much easier and cheaper. On Monday, the Federal Government of Nigeria and the Hong Kong Special Administrative Region of China signed a historic agreement to stop taxing the same income twice.
The agreement, known as the Double Taxation Agreement, was signed during an online ceremony. It is designed to encourage more foreign businessmen to invest in Nigeria, protect local businesses from being taxed by both governments on the same money, and stop tax cheats.
In simple terms, double taxation happens when a business or an individual earns money from cross-border trade and both countries demand tax on that same income. This new agreement puts an end to that burden, making it highly attractive for companies in Hong Kong to set up factories and offices in Nigeria, which will ultimately create jobs for Nigerians.
Speaking on his social media handles after the signing, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, explained how the deal will help the country.
“The Agreement is designed to eliminate the double taxation of income earned across both jurisdictions, prevent tax evasion and avoidance, and provide greater certainty for businesses and investors operating between Nigeria and Hong Kong. It forms part of Nigeria’s broader strategy of expanding its network of tax treaties to support trade, attract investment, and strengthen international tax cooperation.”
The agreement was signed on behalf of Nigeria by the Minister of Finance, Mr. Taiwo Oyedele. Representing the Hong Kong government was Mr. Christopher Hui, the Secretary for Financial Services and the Treasury.
Oyedele described the deal as a major win for the nation’s economy. “This is another significant milestone in the growing economic and commercial relationship between Nigeria and Hong Kong, and a reflection of Nigeria’s continued commitment to building a transparent, predictable, and investor-friendly tax environment that supports trade, investment, and sustainable economic growth.”
Although the ceremony was held online rather than in person, the Minister pointed out that the event is still highly important. He noted that the virtual meeting showed how committed both sides are to building stronger economic ties and making it easier for businesses to buy and sell goods across borders.
This agreement comes at a time when Nigeria is actively looking to expand its business relationships with Asian countries. The Minister described Hong Kong as a world leader in finance and trade, serving as a gateway for massive investment opportunities.
He expressed strong confidence that this new treaty will encourage Nigerian and Hong Kong private companies to work together, opening up new and profitable partnerships.
Rounding up his statement, the Minister praised the negotiation teams from both Nigeria and Hong Kong for their hard work, professionalism, and teamwork. He noted that their efforts created a fair agreement that meets international standards while protecting the rights and interests of both regions.
