TheCable

Lateef Fagbemi, attorney-general of the federation (AGF) and minister of justice, says the federal government has approved a new taxation deal with the United Arab Emirates (UAE) that aims to eliminate double taxation between the two countries.

Fagbemi disclosed this to state house correspondents after the federal executive council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa on Wednesday.

He said the council has given the go-ahead for the Nigeria-UAE double tax treaty to be forwarded to the national assembly for ratification.

The minister said once the treaty is ratified by the national assembly, it will help strengthen economic ties between Nigeria and the UAE by removing tax barriers for businesses and investors.

“One of the major issues discussed was the issue of double taxation encouraging foreign direct investment. This time around, it’s about the relationship between Nigeria and the United Arab Emirates,” he said.

“You’ll recall that a while ago, the president was in the United Arab Emirates. One of the matters that came up for discussion and negotiation is the agreement for the elimination of double taxation with respect to taxes on income, and the prevention of tax evasion and avoid avoidance.⁣

“The Council noted that the agreement between both countries, that is, between Nigeria and the United Arab Emirates includes personal income tax, company income tax, petroleum profit tax, information technology levy, tertiary education tax and capital gain tax.

“Because of the effect of this cooperation or the benefits that will accrue to Nigeria, the council agreed and directed that the agreement that had been signed already should be taken further by mandating authorising the Attorney-General and Minister of Justice to prepare a bill along this line to take to the National Assembly for ratification.”

Fagbemi said the reason for involving the national assembly in the agreement was to elevate it beyond a regular contract, making it a formal treaty between two sovereign nations.

According to the minister, the government intends to extend such treaty to other countries.

FEC APPROVES INVESTMENT PROMOTION AND PROTECTION AGREEMENT FOR NIGERIA, UAE

Doris Uzoka-Anite, minister of industry, trade and investment, also announced that an investment promotion and protection agreement (IPPA) between the countries has been approved by the council for ratification by the national assembly.

According to Uzoka-Anite, her ministry would immediately invoke clauses in the IPPA to review and amend sections that may be unfavourable to Nigeria.

“Council also approved the ratification of the Investment Promotion and Protection agreements between Nigeria and the UAE,” she said.

“With the approval, we can now send the already-signed IPPA to the National Assembly for ratification.

“The council also approved that the Minister for Industrial Trade or Investment should also immediately invoke Article 26 of that agreement, which mandates that we can review and amend some sections of the IPPA to conform with the current IPPA model that we’re using, which is a 2016 model.”

Uzoka-Anite said it will immediately proceed to invoke the section that will enable the ministry to review and amend the sections that were not originally viewed to be favourable.