Business

Nigeria’s trade deal with the UAE: Minister Jumoke Oduwole explains what Nigeria stands to gain from CEPA

Published

1 week ago

January 13, 2026

Joel Ajayi

Today marks a historic milestone in Nigeria’s trade relations. The Federal Republic of Nigeria and the United Arab Emirates signed a Comprehensive Economic Partnership Agreement CEPA that will transform economic ties between our two nations and deliver tangible benefits for Nigerian businesses, professionals, and workers.

This Agreement is the product of focused and determined negotiations led by the Federal Ministry of Industry, Trade and Investment under the direction of the Honourable Minister and Chief Negotiator for Nigeria, Dr Jumoke Oduwole MFR.

It prioritises market access for Nigerian goods and services, facilitates quality investment inflows, and advances our national economic diversification under the Renewed Hope Agenda of President Bola Ahmed Tinubu GCFR.

What This Agreement Delivers for Nigeria
For Nigerian exporters, the UAE will eliminate tariffs on over 7,000 products. Immediately, our agricultural and industrial products – fish and seafood, oil seeds, cereals, cotton,

pharmaceuticals, chemicals and more, will enter the UAE market duty-free. Over the next three to five years, the UAE will eliminate tariffs on Nigerian machinery, vehicles, electrical equipment, apparel, and furniture. Nigerian industrial exports now have a clear and competitive pathway into one of the world’s most dynamic trading hubs.

In addition, Nigerian businesses can establish operations in the UAE through new corporate entities, branches, and subsidiaries.

Nigerian business visitors can enter the UAE for up to 90 days in 12 months to explore trade and investment opportunities while intra-corporate transferees, our managers, executives, and specialists can relocate with their corporate entities for renewable three-year periods.

For Nigeria’s investment climate, this Agreement addresses longstanding impediments to foreign direct investment. UAE investors now have clarity and confidence to invest in Nigeria’s productive sectors.

This will support Nigeria’s industrialisation agenda, enhance transport and logistics connectivity, and contribute to the creation of quality jobs for our youthful population.

Nigeria’s Commitments Under the Agreement
For trade in goods, Nigeria will eliminate tariffs on around 6,000 products.

Tariffs on around 60% of these products will be eliminated immediately, with the remainder phased over five years. These imports are concentrated in industrial inputs, capital goods, and machinery that will strengthen Nigeria’s productive capacity.

Nigeria’s Import Prohibition List remains in effect. On trade in services, Nigeria’s commitments cover 99 specific services across 10 sectors, including business services, communication, transport, financial services, construction, distribution, health, environment, recreational/sporting, and tourism.

A Strategic Agreement for a Diversified Economy
This CEPA is a strategic instrument for economic transformation. WithWith significant market access secured for value-added and industrial goods, this agreement incentivises Nigerian manufacturers to scale production for export.

The CEPA also positions Nigeria as the gateway for international investors seeking access to the African Continental Free Trade Area and its 1.4 billion people.

Nigeria has already recorded unprecedented participation from UAE institutional investors, including First Abu Dhabi Bank, particularly in infrastructure financing. Notably, this includes support for the construction of the Lagos–Calabar Coastal Road, representing a strong vote of confidence in Nigeria’s macroeconomic trajectory and reform agenda.

Sky Capital has been instrumental in supporting the CEPA agreement and in projecting Nigeria’s investor readiness. The signing of the Agreement signals acceleration of deals in agriculture, real estate, digital banking, retail and infrastructure financing.

The Agreement is fully consistent with our obligations under the World Trade Organisation, the African Continental Free Trade Area, and ECOWAS.

Swift Implementation

The Federal Ministry of Industry, Trade and Investment, working with key MDAs such as the Nigeria Customs Service (NCS), alongside FMITI agencies such as the Nigerian Export Promotion Council (NEPC), and the Nigerian Investment Promotion Commission (NIPC) and the Standards Organization of Nigeria (SON) will ensure that Nigerian businesses, and the investors we host, have the information, support, and facilitation they need to take swift and full advantage of this Agreement in line with Mr. President’s “Nigeria First” directive.

I would like to appreciate the Nigerian negotiation team, including the Lead Technical Advisers, FMITI/Nigerian Office for Trade Negotiation, the Nigerian Customs Service and the Ministry of Justice, among several other Ministries, Departments and Agencies, who played a critical role in this milestone Agreement. Collectively, these institutions will ensure that Nigerian businesses are equipped with the necessary information, support, and facilitation mechanisms required to fully leverage the opportunities created by this Agreement.

I would like to seize this opportunity to appreciate Dr Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade and the UAE negotiation team for this strong collaborative effort.

To the Nigerian private sector: this Agreement was negotiated for you. I urge you to identify your opportunities with enhanced market access and move with confidence into the UAE market with the protections we have secured for you.

Nigeria is open for business, and Nigerian businesses now have open access to the UAE, the Middle East and the rest of the world.

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Business

VAT on Banking Services: Setting the record straight

Published

2 days ago

January 21, 2026

The Gleamer

By Arabinrin Aderonke

In recent days, Nigerians have been inundated with reports suggesting that the Federal Government has introduced Value Added Tax (VAT) on banking services such as electronic transfers, fees and commissions. Understandably, this has triggered anxiety among citizens already grappling with economic pressures.
However, the truth is far less dramatic than the headlines suggest.

Contrary to widespread claims, VAT on banking services is not new. It was not introduced by the Nigeria Tax Act, 2025, and it does not represent an additional financial burden on bank customers.
For decades, Nigeria’s VAT framework has applied to fees, commissions and charges for services rendered by banks and other financial institutions.

What has changed is not the law, but enforcement.
The Nigeria Revenue Service (NRS) has been compelled to clarify this point following a wave of misinformation that blurred the line between service charges and actual funds transferred. VAT is not, and has never been, charged on the amount of money a customer transfers or withdraws.

Rather, it applies strictly to the service fee imposed by the bank.

This distinction is critical. When a customer transfers ₦10,000 or ₦1 million, VAT is not deducted from the transferred sum. It is calculated only on the small service charge associated with the transaction.

Interest earned on savings accounts and fixed deposits also remains exempt, as it does not constitute a supply of goods or services under the law.

Equally important is what VAT does not cover. Basic food items, essential goods, medical and pharmaceutical products, as well as educational services, remain firmly exempt under the Nigeria Tax Act, 2025. These protections were deliberately preserved to shield ordinary Nigerians from unnecessary hardship.

So why the sudden public concern?The answer lies in improved compliance and enforcement. Financial institutions are being reminded of their obligation to remit VAT already charged and collected. This renewed focus has created the false impression of a new tax, when in reality, it is the implementation of an existing one.

Tax reforms often attract controversy, especially in times of economic strain. Yet clarity must prevail over confusion. Spreading inaccurate information undermines public trust and distracts from the real conversation Nigeria must have about transparency, accountability and effective tax administration.

The Nigeria Revenue Service has made it clear that the Nigeria Tax Act, 2025, does not introduce any new VAT burden on ordinary citizens, particularly in sensitive areas such as savings, food, healthcare and education.

As Nigerians, we deserve honest explanations not alarmist headlines. In a democracy, scrutiny is healthy, but it must be anchored on facts.

The task before us is not to fear taxation, but to demand that taxes already in place are administered fairly, communicated clearly, and used responsibly for national development. That is the conversation worth having.

Arabinrin Aderonke Atoyebi is the Technical Assistant on Broadcast Media to the Executive Chairman of the Nigeria Revenue Service.

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