Nigeria Signs Double Taxation Treaty with Rwanda

Nigeria Signs Double Taxation Treaty with Rwanda

Nigeria Signs Double Taxation. Late last week, Nigeria and Rwanda took a bold step toward strengthening fiscal cooperation by signing an agreement on the Avoidance of Double Taxation and Prevention of Fiscal Evasion concerning taxes on income.

The treaty, signed on the sidelines of the 32nd Afreximbank Annual Meetings in Abuja, marks a significant shift in how both nations manage cross-border taxation and aligns with continental goals under the African Continental Free Trade Area (AfCFTA).

Nigeria Signs Double Taxation Treaty: Signed by Finance Ministers of Both Nations

The formal agreement was concluded between Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and Rwanda’s Minister of Finance and Economic Planning, Mr. Yusuf Murangwa.

Speaking during the event, Edun described the agreement as “a strategic milestone that builds on Nigeria’s recent passage of four pivotal tax reform bills.”

Ending the Burden of Being Taxed Twice

Edun emphasized that the double taxation treaty provides critical tax certainty for investors and businesses operating between both countries.

“This agreement is a critical tool for promoting cross-border investment, ensuring tax certainty, and eliminating the risk of being taxed twice on the same income,” he said.

He further highlighted that the deal aligns with Nigeria’s tax modernization goals, particularly the drive to unlock private capital, strengthen investor confidence, and attract more trade and investment under the AfCFTA framework.

Streamlined Tax Systems, Transparent Governance

The treaty aims to simplify tax administration, curb fiscal evasion, and align both nations’ systems with global best practices. It provides a structured mechanism to:

  • Prevent double taxation
  • Enhance transparency
  • Reduce tax avoidance opportunities
  • Promote exchange of tax-related information

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Rwanda Commits to Deeper Economic Integration

Rwandan Finance Minister Yusuf Murangwa echoed these sentiments, stating that the treaty is a reflection of both countries’ shared commitment to regional development.

“This agreement is a testament to the strong partnership between Rwanda and Nigeria, and a critical step in creating a unified, investor-friendly Africa,” Murangwa remarked.

He noted that the treaty will serve as a model for deeper regional integration, fostering a business environment that facilitates technology transfer, capital flow, and long-term trade partnerships.

Boost for African Tax Cooperation

Technical teams from both nations were praised for their work in shaping a forward-looking framework that addresses both administrative challenges and taxpayer concerns.

By eliminating overlapping taxation, the agreement is expected to boost trade volumes, streamline fiscal planning for multinational businesses, and encourage compliance without adding tax burdens.

Looking Ahead

As Nigeria and Rwanda move to implement the treaty’s provisions, tax experts are optimistic that the agreement will unlock new opportunities, particularly in technology, agriculture, finance, and logistics.

The deal represents not just a fiscal agreement, but a broader political and economic commitment to regional resilience and sustainable development.

Stay connected with us for more updates on how this treaty—and others like it—are reshaping Africa’s tax environment and investment climate.

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