– Seeks decision of 20-year-old tax treaty as Seoul pushes manufacturing, tech switch, native manufacturing
Michael Olugbode in Abuja
South Korea has recognized Nigeria’s failure to finish the ratification of a bilateral tax settlement signed 20 years in the past as a lingering impediment to deeper funding relations, urging the federal authorities to resolve the excellent concern as each international locations search to rework their $1.1 billion commerce relationship right into a broader industrial partnership.
The Korean authorities stated Nigeria’s financial relationship with Seoul should transfer past the normal alternate of Nigerian oil and fuel for Korean automobiles, electronics and equipment to 1 constructed round manufacturing, know-how switch, agricultural industrialisation and native employment.
Korean Ambassador to Nigeria, Jeong Yo-an, who disclosed this at a press briefing in Abuja, stated the double taxation settlement signed by each international locations in 2006 remained an essential excellent concern that wanted pressing consideration to enhance funding predictability and encourage Korean corporations to ascertain and develop operations in Nigeria.
The settlement, designed to forestall people and corporations working between the 2 international locations from being taxed twice on the identical revenue, was anticipated to offer larger certainty for cross-border investments.
South Korea accomplished its home ratification course of in 2007, whereas Nigeria’s legislative approval course of superior in 2019. However, the settlement didn’t obtain the required presidential assent earlier than the top of the administration on the time, leaving its implementation unresolved.
Jeong stated the delay was significantly regarding at a time when each international locations have been looking for to develop business relations and entice extra non-public funding.
He argued that traders wanted predictable insurance policies, significantly in taxation, customs administration and international alternate, earlier than committing substantial capital to long-term tasks.
The ambassador stated the unresolved settlement was among the many points he supposed to pursue throughout his diplomatic project, stressing that its decision would exhibit Nigeria’s dedication to offering a extra predictable funding surroundings.
Beyond the tax settlement, he challenged each international locations to rethink the construction of their financial relationship, noting that the present commerce sample had largely confined Nigeria to supplying vitality sources whereas importing completed merchandise from South Korea.
“Today, Nigeria sells us mostly oil and gas. Korea sells mostly cars, electronics and machinery. We can do much more than that,” he stated.
The envoy stated South Korea wished to deepen its involvement in Nigeria’s productive financial system by way of native meeting, manufacturing partnerships, agricultural equipment manufacturing, digital expertise growth and maritime cooperation.
“The next chapter should be ‘Made in Nigeria’. Local assembly. Machinery for rice farmers. Digital skills. The maritime sector,” he stated.
The proposal comes towards the background of a long time of financial relations between the 2 international locations, which established diplomatic ties in February 1980.
Over the years, Korean corporations have developed pursuits in Nigeria’s development, vitality, telecommunications, electronics and manufacturing sectors.
Jeong cited Daewoo Engineering and Construction’s participation in main Nigerian tasks, together with the Nigeria LNG Train Seven challenge and the Indorama fertiliser plant, as examples of the present industrial relationship.
He additionally recognized Samsung, LG, Hyundai and Solpia amongst Korean corporations sustaining enterprise actions and partnerships in Nigeria.
However, he maintained the subsequent part ought to transcend supplying gear and executing massive infrastructure contracts to constructing native productive capability, creating Nigerian experience and creating alternatives for home companies.
He urged Nigerian corporations looking for worldwide partnerships to utilise the Korea Trade-Investment Promotion Agency (KOTRA) workplace in Lagos to attach with Korean producers and discover entry to the Korean market.
On agriculture, the ambassador recognized alternatives for cooperation in mechanisation, improved manufacturing techniques and the event of agricultural worth chains, significantly given Nigeria’s want to extend productiveness and develop native processing.
He additionally highlighted the potential for collaboration in renewable vitality, digital know-how, synthetic intelligence and maritime growth.
The ambassador stated Korea was ready to share its industrial growth expertise with Nigeria however cautioned towards trying to breed its financial mannequin with out contemplating native situations.
Recalling Korea’s emergence from the devastation of the Korean War in 1953, when its per capita revenue was beneath $100, he stated the nation had reworked itself into a serious industrial and technological financial system by way of sustained investments in schooling, expertise, manufacturing and institutional growth.
“The key word is not ‘copy’. The key word is ‘adapt’. Nigeria will write its own story. Korea is ready to share what we have learned,” he stated.
He additionally highlighted ongoing Korean growth cooperation in Nigeria, significantly in schooling, entrepreneurship and human capital growth.
According to him, roughly 2,000 Nigerian authorities officers have obtained coaching in South Korea by way of the Korea International Cooperation Agency (KOICA).
He stated KOICA’s Smart School challenge, carried out in partnership with the Universal Basic Education Commission, had reached about 8,000 pupils and offered coaching for greater than 300 academics and college directors.
Another main initiative is the Abuja Centre for Entrepreneurship, developed by way of cooperation involving KOICA, the Small and Medium Enterprises Development Agency of Nigeria and the United Nations Development Programme.
The centre, whose groundbreaking passed off in September, is designed to assist younger Nigerians develop enterprise concepts into sustainable enterprises by way of coaching, mentorship and entry to markets and financing.
Jeong stated the initiative was structured to make sure that Nigerian establishments and professionals would finally handle its operations, with a Training of Trainers programme offering the native experience wanted to maintain the challenge.
“A building alone does not create entrepreneurs,” he stated, explaining that the centre was supposed to attach start-ups with traders, private-sector operators and growth companions.
He additionally disclosed that KOICA was working with the Food and Agriculture Organisation to advertise agricultural growth and create inexperienced employment alternatives for Nigerian youths.
On digital inclusion, he recalled the institution of the Nigeria-Korea Information Access Centre in Abuja in 2025 to strengthen digital literacy and supply entry to know-how sources.
The ambassador stated Korea’s Global Korea Scholarship programme and different postgraduate and authorities fellowship alternatives would proceed to offer avenues for Nigerian college students and professionals to amass experience in info know-how, public administration and well being.
He added that future cooperation would more and more contain non-public corporations, start-ups and innovators, significantly in synthetic intelligence and digital entrepreneurship.
On the diplomatic entrance, Jeong welcomed Nigeria’s provide to host the seventh session of the Nigeria-Korea Joint Commission in Abuja, describing it as a possibility to advance financial cooperation and handle excellent bilateral points.
He additionally cited the 2024 Korea-Africa Summit in Seoul and the Korea-Africa Foreign Ministers’ Meeting held in June 2026 as essential platforms for strengthening relations.
Korea, he stated, was working in direction of increasing its Official Development Assistance to $10 billion by 2030 and offering $14 billion in export financing to help its corporations working throughout Africa.
He disclosed that Seoul was additionally planning to host the second Korea-Africa Summit in 2029 to consolidate its engagement with the continent.
Beyond authorities and enterprise relations, the ambassador stated cultural exchanges have been creating further alternatives for people-to-people engagement, citing the rising reputation of Korean movies, music, cosmetics and Taekwondo in Nigeria.
He disclosed that greater than 300,000 individuals had participated in programmes organised by the Korean Cultural Centre Nigeria since its institution, whereas latest cultural and sporting occasions had attracted rising youth participation.
The ambassador, a former navy officer who spent 36 years in uniform earlier than getting into the diplomatic service, stated he supposed to pursue sensible outcomes throughout his tenure in Nigeria.
“The army taught me one simple lesson: trust is built when you keep your word. That is how I want to work in Nigeria – with more results,” he stated.
