Nigeria and the Hong Kong Special Administrative Region (HKSAR) have signed a Double Taxation Agreement (DTA) aimed at strengthening bilateral trade, promoting cross-border investment and preventing tax evasion.

The agreement is expected to provide greater tax certainty for businesses operating between both jurisdictions while supporting Nigeria's broader strategy to attract foreign investment.

Strengthening Economic Cooperation

The agreement was signed virtually by Nigeria's Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, on behalf of their respective governments.

According to the Federal Ministry of Finance, the treaty marks another step in strengthening economic relations between Nigeria and one of Asia's leading international financial centres.

Supporting Investment and Trade

Speaking during the signing ceremony, Edun described the agreement as a significant milestone that reinforces Nigeria's commitment to creating a transparent, predictable and investor-friendly tax environment.

He noted that the treaty comes as Nigeria seeks to deepen its participation in global value chains and strengthen economic partnerships across Asia.

The minister also highlighted Hong Kong's position as a major financial and commercial hub, expressing confidence that the agreement would encourage greater business activity and investment between both markets.

Preventing Double Taxation

The agreement is designed to:

  • Eliminate double taxation on income.
  • Prevent tax evasion and tax avoidance.
  • Improve tax certainty for businesses and investors.
  • Promote cross-border trade and investment.
  • Strengthen international tax cooperation.

Edun also commended the negotiating teams from both governments for reaching what he described as a balanced agreement aligned with international best practices.

Why It Matters

Double taxation agreements reduce the tax burden on businesses operating across borders, making international investment more attractive. The Nigeria-Hong Kong treaty is expected to strengthen investor confidence, improve trade flows and support Nigeria's efforts to build closer economic ties with Asian markets.