Nigeria’s Withholding Tax Regulations 2024 and Possible Conflict with Non-Discrimination Provisions in Double Taxation Treaties and Bilateral Investment Treaties

The Withholding Tax Regulations 2024 (WHT Regulations or the 2024 Regulations), issued on 2 October 2024, introduce varying tax rates for residents and non-residents. These changes have raised concerns about potential conflicts with non-discrimination provisions in the Double Taxation Treaties (DTTs) and Bilateral Investment Treaties (BITs) that Nigeria has established with its treaty partners.

While these regulations play a key role in enhancing Nigeria’s fiscal revenue, they must align with the country’s international treaty commitments to safeguard foreign investors and ensure equitable tax treatment alongside Nigerian residents and nationals.

In this article, TEMPLARS Partner Sesan Sulaiman and Associate Chibuike Ikefuna explore the interplay between the WHT Regulations and non-discrimination clauses in Nigeria’s treaties, offering insights into potential remedies for affected investors.

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