The Federal Government of Nigeria has officially approved the signing of an agreement with the United Arab Emirates (UAE) aimed at eliminating double taxation and preventing tax evasion on income. At the inaugural Federal Executive Council (FEC) meeting of 2024, presided over by President Bola Tinubu at the Presidential Villa in Abuja, it was agreed that the Attorney General of the Federation, Lateef Fagbemi, would draft an executive bill to address the issue of double taxation. The purpose of this action is to provide support for Nigerian industries and promote Foreign Direct Investment (FDI).
Key negotiations with the UAE centered on the impact of double taxation on foreign direct investment in Nigeria. Consequently, the Council authorized the Attorney-General and Minister of Justice to prepare a bill for submission to the National Assembly for ratification. Additionally, the FEC has given approval for the ratification of the agreement between Nigeria and the UAE on the reciprocal promotion and protection of investments.
Aside from the agreement on double taxation and investment promotion, several other important decisions were made during the meeting. These include the approval of Group Life Assurance for federal workers, ministers, para-military and intelligence officers at a cost of N9.25 billion, the endorsement of the Oyo state government’s request to reconstruct the Ojoo Interchange at Moniya-Akinyele, and discussions on measures to address challenges faced by pharmaceutical companies in the country. Furthermore, funding was restored to 13 regulatory agencies proposed in the 2024 budget, and approval was given for the development of an enforcement structure to combat illegal mining and logging. Policy guidelines on Transnational Education in Nigeria were also approved, as well as the authority for the Federal Ministry of Health to urgently recruit needed health workers.
These decisions reflect the Nigerian government’s dedication to fostering economic growth, protecting industries, and ensuring the welfare of its citizens. The signing of the double taxation agreement with the UAE marks a significant step towards creating a more conducive environment for foreign investment in Nigeria and enhancing cooperation between the two countries.
