Nigerian and Canadian private-sector leaders have renewed calls for direct air links between both countries, arguing that such a move could unlock billions of dollars in trade, expand cargo capacity, and strengthen economic cooperation. Their position was outlined in a statement issued on Sunday following the third annual Nigeria Canada Business Association (NCBA) Business Roundtable, held on Thursday.
The forum brought together diplomats, trade experts, and industry leaders to examine how improved air transport and updated investment frameworks could transform Nigeria–Canada economic relations.
Although Abuja and Ottawa announced a code-sharing arrangement in March 2025, the agreement does not include direct flight operations. At the time, officials confirmed that the proposal was still in early discussions and would require both countries to designate airlines.
At the roundtable, Canada’s Deputy High Commissioner to Nigeria, Carlos Rojas-Arbulú, stressed that a direct flight agreement remains central to facilitating smoother travel and expanding trade volumes.
He noted that the code-sharing deal “does not translate to direct flights,” adding that Canada sees Nigeria as a major gateway into West Africa. “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.
While airlines such as Air Peace, Air Canada, and Air Transat may show interest, Rojas-Arbulú said the final decision lies with both governments, taking commercial, security, and regulatory factors into account. He argued that direct flights would ease travel burdens, enhance export channels, and support growth in agriculture, energy, technology, and services sectors.
Trade experts also highlighted the stalled Foreign Investment Promotion and Protection Agreement (FIPA) signed in 2014 but never ratified by Nigeria. Senior consultant Franca Ciambella explained that without ratification and domestic legislation, the treaty remains inactive. She said FIPAs, though not directly trade-boosting, signal investor confidence through guarantees such as fair treatment, protection from expropriation, and access to arbitration.
KPMG Nigeria partner Akinwale Alao urged Canadian firms eyeing Nigeria to familiarise themselves with the sweeping tax reforms taking effect on January 1, 2026. He said foreign investors should seek early guidance, take advantage of incentives, and rely on protections within the Nigeria–Canada Double Tax Treaty.
Alao noted that Nigeria’s economic indicators—including stabilised foreign exchange rates, easing inflation, and declining interest rates—make it a compelling destination for long-term investors.
He added that key incentives remain available for companies willing to establish operations locally. These include the new Economic Development Incentive, which offers an annual tax credit of 5% of qualifying capital expenditure for up to five years, applicable to sectors such as manufacturing, agro-processing, mining, energy, utilities, ICT, and the creative industry.
He further explained that under the existing tax treaty, Canadian companies without a permanent establishment in Nigeria are shielded from profit-based taxation, while both countries benefit from dispute-resolution mechanisms that prevent double taxation.
Alao advised investors to study Nigeria’s evolving tax landscape closely. He noted that enforcement is becoming more assertive, making compliance vital. “It is always good to get professional tax advice, especially at a transition time like this. Investors must understand how the new rules affect their business and take proactive steps to stay compliant,” he said.
