Nigeria, Rwanda sign tax treaty to unlock cross-border investment

From Adanna Nnamani, Abuja

Nigeria and Rwanda have signed a historic treaty to eliminate double taxation and prevent fiscal evasion, in a move aimed at boosting cross-border investments and deepening economic ties between both countries.

The agreement was sealed on the sidelines of the ongoing 32nd Annual Meetings of the African Export-Import Bank (Afreximbank), currently holding in Abuja.

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, signed on behalf of Nigeria, while Rwanda’s Minister of Finance and Economic Planning, Mr. Yusuf Murangwa, signed for his country.

According to a statement from the Ministry’s Spokesperson Mohammed Mokwa, Edun described the development as a strategic milestone, adding that the agreement aligns with Nigeria’s recent tax reform agenda and the push to unlock private sector capital.

“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.

The Minister explained that the treaty would also enhance Nigeria’s competitiveness as an investment destination under the African Continental Free Trade Area (AfCFTA), while providing certainty to businesses and simplifying tax administration in line with international best practices.

According to him, “It supports our broader objective of accelerating intra-African trade and positioning Nigeria as a competitive destination for investment.”

On his part, Murangwa said the agreement will facilitate the growth of a unified, investor-friendly Africa.

“This agreement is a testament to the strong partnership between Rwanda and Nigeria, and a critical step in creating a unified, investor-friendly Africa. We believe this will serve as a model for deeper regional integration and shared prosperity,” he said.

Both ministers praised the efforts of their respective technical teams whose work laid the groundwork for the treaty.

The deal is expected to provide relief to businesses operating in both countries, particularly in the areas of technology, finance, agriculture, and logistics. It will also help reduce tax avoidance risks, strengthen transparency, and boost investor confidence.