Nigerian and Canadian business leaders say direct air connectivity between both countries could unlock billions of dollars in new trade and investment, boost cargo movement, and deepen bilateral economic cooperation.
According to a statement made available to PUNCH Online on Sunday, the position was presented at the third annual Nigeria Canada Business Association (NCBA) Business Roundtable held on Thursday, which convened diplomats, private-sector leaders, and trade experts to discuss the future of Nigeria–Canada economic relations.
Although both governments announced a code-sharing arrangement earlier in March 2025 to improve aviation efficiency, the agreement stops short of approving direct flights.
At the time, the Minister of Aviation and Aerospace Development’s Special Adviser on Digital Media, Gbenga Saka, confirmed that discussions were still at a preliminary stage and would require the designation of airlines by both countries.
Speaking at the roundtable, the Deputy High Commissioner of Canada to Nigeria, Carlos Rojas-Arbulú, said enhanced air services, particularly the long-requested direct flight agreement, remain critical to expanding trade volumes and easing movement between the two countries.
He clarified that the current code-sharing arrangement does not equate to direct flights.
“Canada wants to bet on West Africa, and we want to bet on Nigeria.
“This is an immense consumer market that can catalyze growth for Canadian companies,” he said.
Rojas-Arbulú stressed that while airlines such as Air Peace, Air Canada, or Air Transat may be interested, the final decision rests with both governments and must align with commercial, security, and regulatory considerations.
“It is in the best interest of both governments to open up that door for direct flights. Both parties are going to make a lot of money.
“If there is a second government priority after FIPA, it is this question of air transportation,” he added.
He added that direct flights would reduce travel burdens, enhance cargo capacity, and support growth in agriculture, energy, technology, and professional services.
“The statistics demonstrate that there is enough movement. Cargo will also be facilitated, and we know how important that is for exports to and from Canada,” he said.
Speaking on the stalled 2014 FIPA, Senior Consultant, Ms. Franca Ciambella, emphasised that the agreement, though signed, was never ratified by Nigeria, rendering it ineffective, setting the tone as NCBA lead discussion on how both countries can modernise pathways for the unratified agreement.
“So, what is the status of the FIPA between Canada and Nigeria? There’s been a lot of misinformation, people saying, “Oh, we have one signed.” Yes, that’s correct.
“A FIPA was signed between Canada and Nigeria in 2014, but Nigeria did not ratify it. And in simple language, for an international treaty to be effective locally, it must be ratified, and then local legislation has to be passed to put it in force,” she said.
She further stressed that while FIPAs do not directly reduce tariffs or increase trade volumes, they serve as a strategic signal of seriousness, providing added layers of investor protection such as safeguards against expropriation, fair treatment, free transfer of earnings, and access to arbitration and dispute-resolution mechanisms Cimabella said,
Meanwhile, a Partner, Tax, Regulatory & People Services at KPMG Nigeria, Mr. Akinwale Alao, urged Canadian businesses eyeing Nigeria to pay close attention to the country’s sweeping tax reforms coming into effect on January 1, 2026.
He advised foreign investors to understand the new rules, engage tax professionals early, and leverage the protections available under the Nigeria-Canada Double Tax Treaty.
“Nigeria remains one of Africa’s most promising markets, with strong improvements in inflation, foreign exchange stability and long-term growth prospects,” Alao noted.
“Canadian businesses can find real opportunities in manufacturing, agro-processing, technology and export services if they take a long-term view.”
He added, “Nigeria is actively trying to drive the level of export trade, making this an opportune time to invest.
“The macroeconomic environment is improving: inflation is easing, and foreign exchange rates have held steady for about nine months now. What’s more, interest rates have started to trend down—and further cuts by the Central Bank are likely based on current indicators.”
He added that investors can take advantage of domestic exemptions and incentives, noting the government’s focus on local manufacturing.
“For businesses with the financial muscle to set up in Nigeria—whether to manufacture equipment, produce goods or engage in agro-allied processing—there are significant incentives available,” he said.
He explained that while the pioneer status incentive is being phased out, companies currently enjoying it will do so until their certificates expire.
“A new incentive, the Economic Development Incentive, gives an annual tax credit of 5% of qualifying capital expenditure to eligible investors, and can be enjoyed over five years, with the possibility of renewal. It applies to priority sectors such as manufacturing, agro-allied processing, energy, utilities, mining, the creative sector and ICT.”
Alao also emphasised the practical benefits of the Nigeria-Canada double tax treaty. He noted that Nigerian authorities recognize and respect its provisions.
“If a Canadian company operates in Nigeria without creating a permanent establishment, then its business profits will not be liable to tax in Nigeria, based on Article 7 of the treaty,” he explained.
He added that the treaty prevents double taxation and provides a mutual agreement procedure that allows Nigerian and Canadian tax authorities to work collaboratively towards resolving any issues that may arise.On engagement strategy, Alao advised investors to study Nigeria’s tax laws carefully.
He noted that enforcement has become more sophisticated and assertive, making compliance essential. “One needs to understand the tax regime and play by the rules,” he cautioned.
“It is always good to get professional tax advice, especially at a transition time like this, where the rules are changing. Investors must understand the impact of these changes on their business and take proactive steps to mitigate any issues that may arise.”
