South Korea’s ambassador to Nigeria, Jeong Yo-an, has identified the incomplete ratification of a bilateral tax agreement as a primary obstacle to deepening economic ties between the two nations. Speaking at a press briefing in Abuja, Jeong noted that the double taxation agreement, signed in 2006, remains unresolved despite South Korea completing its domestic ratification in 2007 and Nigeria advancing its legislative process in 2019. According to AllAfrica, the accord failed to receive presidential assent before the end of the previous administration, leaving cross-border investment predictability uncertain for Korean companies seeking to expand operations in Nigeria.
The ambassador argued that the current trade relationship, valued at $1.1 billion, is overly reliant on Nigeria supplying oil and gas in exchange for Korean vehicles, electronics, and machinery. He proposed transforming this dynamic into a broader industrial partnership focused on local assembly, agricultural mechanization, and digital skills development. Jeong stated that investors require predictable policies in taxation, customs, and foreign exchange before committing capital to long-term projects, suggesting that resolving the tax treaty would demonstrate Nigeria’s commitment to a stable investment environment.
Beyond the tax framework, Jeong outlined specific areas for expanded cooperation, including renewable energy, artificial intelligence, and maritime development. He cited existing Korean corporate interests in Nigeria’s construction, energy, and telecommunications sectors, mentioning firms such as Daewoo Engineering and Construction, Samsung, and Hyundai. The ambassador encouraged Nigerian businesses to utilize the Korea Trade-Investment Promotion Agency office in Lagos to explore market access and manufacturing partnerships, aiming to build local productive capacity rather than merely importing finished goods.
Jeong also highlighted ongoing development cooperation initiatives, including the Abuja Centre for Entrepreneurship, which broke ground in September. This center, developed with Nigeria’s SME agency and the UN Development Programme, is designed to support young Nigerian entrepreneurs through training and mentorship. Additionally, he noted that approximately 2,000 Nigerian officials have undergone training in Seoul via the Korea International Cooperation Agency, while the agency’s Smart School project has reached about 8,000 pupils. These efforts are part of a broader strategy to adapt South Korea’s industrial development experience to Nigerian local conditions, emphasizing adaptation over direct replication of the Korean economic model.