South Korea cites tax treaty delay as barrier to Nigerian investment
What happened
The Korean Ambassador to Nigeria, Jeong Yo-an, disclosed that Nigeria's failure to complete the ratification of a bilateral tax agreement signed in 2006 is a lingering obstacle to deeper investment relations. South Korea is seeking to transform its trade relationship with Nigeria from a traditional exchange of oil and gas for Korean vehicles and electronics to one focused on manufacturing and technology transfer.
From allafrica.com
Why it matters
The agreement, which was designed to prevent double taxation on income earned by individuals and companies operating in both countries, is crucial for cross-border investment predictability. The outstanding issue is cited as a major hurdle to encouraging Korean companies to establish and expand operations in Nigeria.
From allafrica.com
Who's involved
- NigeriaSovereign state where the investment hurdles and trade delays are occurring
- federal governmentHighest central level of government responsible for legislative approval of the treaty
- Central Bank of NigeriaCentral bank of Nigeria, potentially affected by investment uncertainty
- Bola Ahmed TinubuPresident of Nigeria, whose administration oversees the national economic goals
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- federal governmentSpeculative
The federal government might face policy friction due to the failure to ratify the tax treaty, creating investment uncertainty.
- Central Bank of NigeriaSpeculative
The Central Bank of Nigeria could face FX unpredictability, hindering investment flows and capital management.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.Keep exploring
The entities involved
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Nigeria
sovereign state in West Africa