Nigeria has commenced formal renegotiations of its Double Taxation Agreement (DTA) with the Netherlands, marking the first such review since President Bola Tinubu signed sweeping tax reforms into law last month.
The Federal Inland Revenue Service (FIRS) hosted Dutch officials in Abuja this week to modernize the decades-old pact.
FIRS Chairman Zacch Adedeji emphasized the urgency of updating the agreement, citing Nigeria’s recent tax reforms and global efforts to combat tax avoidance under the Base Erosion and Profit Shifting (BEPS) framework. “The current treaty no longer reflects contemporary tax realities,” Adedeji stated, noting the revisions align with Tinubu’s plan to broaden Nigeria’s tax base while ensuring compliance with international standards.
Dutch Ambassador Bengt van Loosdrecht expressed optimism about the six-month negotiation process, praising both nations’ “professional teams” committed to finding common ground.
The updated agreement aims to prevent fiscal evasion while attracting legitimate foreign investment.
This renegotiation follows Nigeria’s enactment of four landmark tax laws in June, including the Nigeria Tax Act and Nigeria Revenue Service Act, which will take full effect in January 2026.
Analysts say the revised Dutch treaty could serve as a template for updating Nigeria’s 15 other active DTAs, particularly with major European partners.
The talks come amid increased global scrutiny of tax havens, with the Netherlands historically serving as a conduit for multinational corporations operating in Africa.
Nigeria seeks to curb revenue losses from profit-shifting while maintaining attractive terms for genuine investors.
