The recent signing of the Tax Reform Bill into law by President Bola Ahmed Tinubu is already yielding positive results as international stakeholders are showing interest in Nigeria’s new tax structure.
One of Nigeria’s long-standing trade and investment partners, the Kingdom of the Netherlands, is now the first foreign government to begin formal talks with Nigeria to renegotiate its existing tax agreement.
On Monday, the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, hosted a delegation led by Bengt van Loosdrecht, Ambassador of the Kingdom of the Netherlands to Nigeria, for the opening ceremony of the renegotiation of the Double Taxation Agreement between Nigeria and the Netherlands.
The event took place at the Revenue House in Abuja and marked the beginning of a new phase in Nigeria’s international tax relations.
The aim is to bring the agreement in line with the new reforms and remove outdated terms, especially those relating to double taxation which no longer reflect the current realities.
Dr. Zacch Adedeji, welcomed the delegation on behalf of the President, Government, and people of the Federal Republic of Nigeria.
He described the visit as timely, especially considering recent changes in both domestic and global tax systems.
“Recent developments in the domestic and global tax landscape have made the review of the existing agreement unavoidable. Particularly the tax reforms being carried out by our government, global measures against Base Erosion and Profit Shifting (BEPS), and other evolving international tax standards will render extant agreement out-of-date,” the FIRS boss said.
He further emphasized that the discussions align with the policy direction of the current administration and reflect Nigeria’s commitment to a transparent and fair process;
“This renegotiation meets with the policy objectives of the ongoing fiscal and tax reforms initiated by the administration of President Bola Ahmed Tinubu. We are committed to broadening the domestic tax base, strengthening tax administration, and ensuring that our tax system supports inclusive economic growth.”
In his remark, the Ambassador of the Kingdom of the Netherlands to Nigeria, His Excellency Bengt van Loosdrecht, expressed appreciation for the warm welcome and highlighted the spirit of cooperation guiding the negotiations.
He noted; “The fact that we meet here today is an indication of the goodwill and the good faith in which we want to meet with each other. And I can assure you that my colleagues from the Netherlands will act in good faith. That is always an important basis for good negotiations.”
Reflecting on the nature of treaty talks, he expressed optimism about the process and the teams involved;
“Ultimately, a treaty is about finding common ground and building upon that common ground. I know both of our sides have very competent, professional teams, and I am confident we will have a very fruitful week.”
READ ALSO:
- Family Confirms Passing of Gospel Singer Toluwanisings
- Golden Eaglets suffer 2-1 defeat to Niger in WAFU B U-17 Championship opener
- UK police seek help to locate missing 14-year-old Nigerian boy
- Nigerian jailed 27 months in UK for hacking woman’s accounts, blackmail
- Tinubu rules out attending every APC campaign rally
The next six months will be used to harmonize tax data, implement the newly signed laws, and put systems in place ahead of the January 1, 2026 takeoff of the Nigeria Revenue Service.
This transition period will also cover the review of existing tax agreements to ensure they reflect the provisions of the new reforms.
The tax reform bills recently signed into law include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Tax Board (Establishment) Act. These Acts restructure how taxes are managed in Nigeria.
