By Bassey Udo
Nigeria and the Kingdom of the Netherlands on Monday commenced renegotiation of the Double Taxation Agreement to mark a new phase in international tax relations between the two countries.
The Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, hosted the Netherlands delegation led by the country’s Ambassador to Nigeria, Bengt van Loosdrecht, to the talks in Abuja.
The signing of the Tax Reform Bill into law by President Bola Ahmed Tinubu on June 26, 2025 has already a lot of interest by stakeholders in Nigeria’s new tax structure.
In the last one week, reactions from local and international stakeholders have begun, among them from the Kingdom of the Netherlands, one of Nigeria’s long-standing trade and investment partners.
But, the country is the first foreign government to begin formal talks with Nigeria to renegotiate its existing tax agreement aimed at bringing it in line with the new reforms and remove outdated terms, especially those relating to double taxation which no longer reflect the current realities.
Welcoming the delegation, the FIRS Chairman described the visit by the Netherlands delegation as timely, especially considering recent changes in both domestic and global tax systems.
He said recent developments in the domestic and global tax landscape have made the review of the existing agreement inevitable, particularly with the ongoing tax reforms by the Nigerian government, which has rendered out-of-date global measures against extant agreements on Base Erosion and Profit Shifting (BEPS)and other evolving international tax standards.
Adedeji emphasized the need for discussions by stakeholders to align with the policy direction of the current administration and reflect Nigeria’s commitment to a transparent and fair tax process.
The renegotiation, he noted, meets with the policy objectives of the ongoing fiscal and tax reforms initiated by the present administration, assuring that Nigeria was committed to broaden the domestic tax base, strengthen tax administration, and ensure the country’s tax system supports inclusive economic growth.
In his remark, the Ambassador of the Kingdom of the Netherlands to Nigeria, Bengt van Loosdrecht, said the meeting highlighted the spirit of cooperation guiding the negotiations.
He said that the fact that Nigeria hosted meeting was indicative of the goodwill and the good faith the two countries want to meet with each other.
He gave the assurance that the Netherlands would reciprocate the good faith, which he acknowledged was an important basis for good negotiations.
Reflecting on the nature of treaty talks, Loosdrecht expressed optimism about the process and the teams involved, adding that ultimately, a treaty was about finding common ground and building upon it.
“I know both of our sides have very competent, professional teams, and I am confident we will have a very fruitful week,” he said.
The tax reform bills recently signed into law to restructure how taxes are managed in Nigeria include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Tax Board (Establishment) Act.
Within the next six months, the relevant agencies of government would work to harmonize available tax data, implement the newly signed laws, and put systems in place ahead of the January 1, 2026 takeoff date of the Nigeria Revenue Service.
This transition period is expected to cover the review of existing tax agreements to ensure they reflect the provisions of the new reforms.
