Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
Nigeria and the Hong Kong Special Administrative Region of the People's Republic of China have signed a landmark double taxation agreement aimed at eliminating the double taxation of income, curbing tax evasion and avoidance, and creating a more predictable tax environment for businesses and investors operating across both economies. 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, 13 July 2026, by Nigeria's Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui.
Speaking during the ceremony, Oyedele described the agreement as a major milestone in the growing economic relationship between Nigeria and Hong Kong. He said the treaty demonstrates Nigeria's commitment to building a transparent, predictable and investor-friendly tax system capable of supporting trade, investment and long-term economic growth. The minister noted that the agreement comes at a strategic time as Nigeria seeks to deepen its integration into global value chains and expand economic partnerships across Asia. He described Hong Kong as a leading international financial and commercial hub, expressing confidence that the treaty would facilitate stronger private-sector engagement and open new avenues for mutually beneficial partnerships.
Under the agreement, Hong Kong residents will be allowed to credit taxes paid in Nigeria against the tax payable in Hong Kong on the same income, subject to the provisions of the Inland Revenue Ordinance. Additionally, Nigeria's withholding tax rates for Hong Kong residents on dividends and interest, and for Hong Kong companies on royalties, currently at 10 per cent, will be reduced to 7.5 per cent. The double taxation agreement is expected to eliminate the burden of taxing the same income in both jurisdictions, reduce tax-related barriers to investment, and strengthen cooperation in combating tax evasion and avoidance.
Christopher Hui, Hong Kong's Secretary for Financial Services and the Treasury, highlighted that Nigeria is the most populous country in Africa and an important trading partner of Hong Kong on the continent. He noted that this is the 59th comprehensive double taxation agreement that Hong Kong has concluded and the fourth one this year. "As I pointed out earlier, the continued expansion of our CDTA network, especially with economies along the Belt and Road, provides Hong Kong-based enterprises with greater tax certainty and avoidance of double taxation when expanding their business overseas," Hui said. He added that this can encourage corporations to centralise their fund management, asset allocation and risk management in Hong Kong.
Oyedele commended the negotiating teams from both sides for producing what he described as a balanced and forward-looking agreement that aligns with international best practices while protecting the legitimate interests of both jurisdictions. 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 treaty will take effect after the completion of ratification processes by both Nigeria and Hong Kong in accordance with their respective domestic laws.
Analysts say such treaties are important tools for attracting foreign direct investment, enhancing investor confidence, and promoting international trade by providing a clear framework for taxation of cross-border business activities. The agreement 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. For Nigeria, the treaty represents another step in its ongoing economic reforms aimed at improving the ease of doing business and expanding international commercial partnerships.
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