Nigeria and Rwanda on Friday signed an agreement on “Avoidance of Double Taxation and the Prevention of Fiscal Evasion concerning Taxes on Income”, in a major step toward deepening economic ties and fostering private sector growth in the two countries.
The treaty signed on Friday during the 32nd Afreximbank Annual Meetings held in Abuja signals a renewed commitment by both countries to promote cross-border investment and regional integration.
The signing ceremony was presided over by Wale Edun, Nigeria’s minister of finance and coordinating minister of the economy, alongside his Rwandan counterpart, Yusuf Murangwa, minister of finance and economic planning.
The agreement aims to eliminate the risk of investors being taxed twice on the same income, a common obstacle to expanding trade and investment across African borders.
Edun described the treaty as “a critical tool for promoting cross-border investment, ensuring tax certainty, and eliminating the risk of being taxed twice on the same income.”
He highlighted how this milestone follows Nigeria’s recent passage and subsequent signing of four landmark tax reform bills, underscoring the country’s commitment to creating a more investor-friendly environment.
The agreement not only simplifies tax administration but also improves transparency and aligns the two countries with global standards.
This alignment will help both governments protect taxpayers, reduce loopholes, and combat fiscal abuse, thereby boosting investor confidence in sectors such as technology, finance, agriculture, and logistics, Nigeria’s finance ministry explained.
Echoing the significance of the partnership, Murangwa, Rwanda’s finance minister, called the treaty “a testament to the strong partnership between Rwanda and Nigeria, and a critical step in creating a unified, investor-friendly Africa.”
He also expressed hope that it would “serve as a model for deeper regional integration and shared prosperity” across the continent.
Both ministers praised the efforts of their technical teams, whose professionalism and foresight were instrumental in shaping the agreement.
The treaty is expected to open doors for enhanced trade, technology collaboration, and capital flows between the two nations, helping to lay the foundation for a more resilient and integrated African economy.
The deal comes at a time when Africa’s economic landscape is evolving rapidly, with the African Continental Free Trade Area (AfCFTA) aiming to connect 55 countries into a single market.
