The Federal Government of Nigeria and the Republic of Rwanda have formalized a landmark Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, strengthening their shared goal of advancing economic ties and promoting private sector-led growth across the continent.
The agreement was signed in Abuja during the Afreximbank Annual Meetings (AAM2025), with Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and Rwanda’s Minister of Finance and Economic Planning, Yusuf Murangwa, leading the ceremony.
Minister Edun described the deal as a key step in Nigeria’s reform agenda, coming on the heels of the recent signing of four major tax reform bills.
“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,” Edun stated.
“It supports our broader objective of unlocking private sector capital, accelerating intra-African trade, and positioning Nigeria as a competitive destination for investment under the African Continental Free Trade Area (AfCFTA).”
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The treaty is designed to simplify tax administration, enhance transparency, and bring both countries in line with global best practices.
According to officials, it will help protect taxpayers, reduce loopholes, and combat fiscal abuse, thereby boosting investor confidence in key sectors such as technology, finance, agriculture, and logistics.
Rwanda’s Finance Minister Yusuf Murangwa highlighted the significance of the deal in the context of regional integration.
“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,” Murangwa said.
Both ministers praised the hard work and foresight of their technical teams, whose efforts were instrumental in achieving the agreement.
The pact not only strengthens bilateral tax cooperation but also sets the stage for expanded trade, greater technology collaboration, and increased capital flows, helping to build a more integrated and resilient African economy.
Meanwhile, President Bola Tinubu recently signed into law four tax reform bills aimed at reshaping Nigeria’s fiscal framework.
The Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill were signed at a ceremony at the Presidential Villa on Thursday, following extensive consultations with stakeholders and approval by the National Assembly.
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Image Credit: Nairametrics
