In a move aligned with the Federal Government’s broader economic and tax reform agenda, the Federal Inland Revenue Service (FIRS) has commenced the process of renegotiating Nigeria’s existing double taxation treaty with the Kingdom of the Netherlands.
This development was confirmed by FIRS Chairman, Dr. Zacch Adedeji, who noted that the renegotiation seeks to ensure that the agreement reflects current global tax standards and aligns with Nigeria’s national interest in an evolving economic landscape.
Speaking on the significance of the renegotiation, the FIRS boss explained that the bilateral treaty, which was initially designed to prevent double taxation and encourage investment, requires critical review to close loopholes and prevent abuse by multinational corporations. According to him, the process will also help secure a fairer share of tax revenue for Nigeria, especially from digital and cross-border economic activities.
The renegotiation exercise, which involves technical teams from both countries, is being carried out under the framework of the Organisation for Economic Co-operation and Development (OECD) and the Inclusive Framework on Base Erosion and Profit Shifting (BEPS), to which Nigeria is a signatory.
This move comes as Nigeria intensifies domestic resource mobilization efforts to reduce dependence on oil revenues and broaden the tax net. It also mirrors recent actions by other developing nations aiming to reform outdated treaties that may no longer serve their economic realities.
Dr. Adedeji reiterated that Nigeria remains committed to maintaining strong diplomatic and trade relations with the Netherlands, but stressed that both parties must ensure mutual benefit in tax-related matters.
The renegotiation, which is expected to be concluded in phases, forms part of a wider review of Nigeria’s tax treaties with several countries as the FIRS works to deepen revenue collection efficiency and close fiscal gaps without overburdening local businesses.