Investment Treaties

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  2. Treaties

Nigeria Investment Treaties


Nigeria has signed many bilateral and multilateral treaties aimed at protecting the interest of investors in the country. According to the Nigeria Investment Promotion Commission, the most significant ones include: 


Double Taxation Agreements 

The agreements make provisions for the elimination of double taxation with respect to taxes on income and capital gains. Section 41 CGTA provides that any arrangement set out in an order made under Section 38 PITA and Section 45 CITA so far as they provide (in whatever terms) for relief from tax chargeable in Nigeria on capital gains by virtue of this section, have effect in relation to CGT.

Partners: Belgium, Canada, China, Czech, France, Italy (Airline & Shipping only), Pakistan, Philippines, Romania, Slovak, South Africa, The Netherlands, United Kingdom. 


Investment Promotion and Protection Agreement 

An IPPA seeks reciprocal promotion and protection of investments by individuals and companies in the territories of participating States. An IPPA provides the baseline minimum protections for foreign investments.

Partners: China, Finland, France, Germany, Italy, Korea Republic, Netherlands, Romania, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan Province of China, United Kingdom. 


ECOWAS Trade Liberalisation Scheme 

ECOWAS Treaty is a multilateral agreement executed by 15 countries in West Africa to enhance and accelerate economic and social development in the region. Further to the Treaty, ECOWAS set up ETLS as an operational tool to promote and facilitate trade within the region.

This Scheme provides for:

  • abolition of customs duties levied on imports and exports of goods produced and moving among member states; and

  • abolition of non-tariff barriers among members states to facilitate free movement of goods and services across member states.

Partners: Benin, Burkina Faso, Cape Verde, Cote d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo. 


Commonwealth Tax Relief 

Nigeria is a member of the Commonwealth, and, as part of its independent policy to foster the relationship among other commonwealth nations, Nigeria provides in Section 44 CITA a tax relief for profits earned in Commonwealth countries which are also liable to tax in Nigeria. Companies established as Nigerian companies shall be subject to the Commonwealth tax rate, subject to a cap of half of the Nigerian tax rate.