President Muhammadu Buhari, on Friday, 26 January 2018 assented to the Avoidance of Double Taxation Agreement between the Federal Republic of Nigeria and the Kingdom of Spain (Domestication and Enforcement) Act, 2018.
The double tax agreement (DTA) between Nigeria and Spain had been awaiting ratification by the legislature for about nine years. The legislature commenced the process of ratifying the DTA with Spain in 2016, in line with the provisions of Section 12(1) of the Nigerian Constitution which precludes treaties from having the force of law until they have been enacted by the National Assembly. The ratified DTA was recently forwarded to the Executive for final assent.
The Presidential assent of the DTA with Spain is a welcomed development given that there are quite a number of signed DTAs between Nigeria and other trade partners which are still pending ratification. It is expected that the DTA between Nigeria and Spain will contain provisions similar to other existing DTAs between Nigeria and other countries, which are already in force, and will attract further investments into the country.