As part of moves to boost trade in Nigeria, the Federal Executive Council (the "FEC") has approved a Bilateral Agreement between Nigeria and Singapore.
The objective of the agreement is to encourage more direct flow of foreign investments into Nigeria and assist investors in ascertaining their tax obligations to ensure that nationals or enterprises are not taxed twice on income or profits derived from each of the countries. It is believed that the Bilateral Agreement will help ameliorate double taxation and prevent tax evasion on income and capital benefits. The agreement will also ensure a consistent and sustainable tax regime for each of the country.
Nigeria is consistently ranked as one of Singapore’s top five trading partners and investment destinations in the region. It was estimated that the total bilateral trade in goods was $311 million in 2015 between the two countries.
The underlying principle behind the agreement is based on the position that Singapore has been a major trading partner with Nigeria as they buy oil and other petroleum products from Nigeria and export to Nigeria substantial worth of goods.
Relatedly, FEC has also approved a Bilateral Aviation Service Agreement (ASA) with Singapore and Qatar.
The Nigeria-Singapore ASA provides a framework to enable the establishment of air linkages between both countries, as carriers from both countries can operate an agreed number of passenger and cargo flights between Nigeria and Singapore, and beyond both countries. This will serve to facilitate the growth of trade, investment, and tourism, as well as the people-to- people passages between the two countries.