– 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 mentioned Nigeria’s financial relationship with Seoul should transfer past the normal trade of Nigerian oil and fuel for Korean autos, electronics and equipment to at least one constructed round manufacturing, expertise switch, agricultural industrialisation and native employment.
Korean Ambassador to Nigeria, Jeong Yo-an, who disclosed this at a press briefing in Abuja, mentioned 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 firms to ascertain and broaden operations in Nigeria.
The settlement, designed to forestall people and firms working between the 2 international locations from being taxed twice on the identical revenue, was anticipated to offer better 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 mentioned the delay was significantly regarding at a time when each international locations have been searching for to broaden industrial relations and entice extra non-public funding.
He argued that buyers wanted predictable insurance policies, significantly in taxation, customs administration and international trade, earlier than committing substantial capital to long-term tasks.
The ambassador mentioned the unresolved settlement was among the many points he meant to pursue throughout his diplomatic task, stressing that its decision would show Nigeria’s dedication to offering a extra predictable funding setting.
Beyond the tax settlement, he challenged each international locations to rethink the construction of their financial relationship, noting that the prevailing commerce sample had largely confined Nigeria to supplying power 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 mentioned.
The envoy mentioned South Korea needed to deepen its involvement in Nigeria’s productive financial system via native meeting, manufacturing partnerships, agricultural equipment manufacturing, digital abilities improvement and maritime cooperation.
“The next chapter should be ‘Made in Nigeria’. Local assembly. Machinery for rice farmers. Digital skills. The maritime sector,” he mentioned.
The proposal comes in opposition to 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 firms have developed pursuits in Nigeria’s development, power, telecommunications, electronics and manufacturing sectors.
Jeong cited Daewoo Engineering and Construction’s participation in main Nigerian tasks, together with the Nigeria LNG Train Seven undertaking and the Indorama fertiliser plant, as examples of the prevailing industrial relationship.
He additionally recognized Samsung, LG, Hyundai and Solpia amongst Korean firms sustaining enterprise actions and partnerships in Nigeria.
However, he maintained the subsequent section ought to transcend supplying gear and executing massive infrastructure contracts to constructing native productive capability, growing Nigerian experience and creating alternatives for home companies.
He urged Nigerian firms searching 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 methods and the event of agricultural worth chains, significantly given Nigeria’s want to extend productiveness and broaden native processing.
He additionally highlighted the potential for collaboration in renewable power, digital expertise, synthetic intelligence and maritime improvement.
The ambassador mentioned Korea was ready to share its industrial improvement expertise with Nigeria however cautioned in opposition to making an attempt 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 mentioned the nation had reworked itself into a serious industrial and technological financial system via sustained investments in schooling, abilities, manufacturing and institutional improvement.
“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 mentioned.
He additionally highlighted ongoing Korean improvement cooperation in Nigeria, significantly in schooling, entrepreneurship and human capital improvement.
According to him, roughly 2,000 Nigerian authorities officers have acquired coaching in South Korea via the Korea International Cooperation Agency (KOICA).
He mentioned KOICA’s Smart School undertaking, applied in partnership with the Universal Basic Education Commission, had reached about 8,000 pupils and offered coaching for greater than 300 lecturers and college directors.
Another main initiative is the Abuja Centre for Entrepreneurship, developed via cooperation involving KOICA, the Small and Medium Enterprises Development Agency of Nigeria and the United Nations Development Programme.
The centre, whose groundbreaking befell in September, is designed to assist younger Nigerians develop enterprise concepts into sustainable enterprises via coaching, mentorship and entry to markets and financing.
Jeong mentioned the initiative was structured to make sure that Nigerian establishments and professionals would ultimately handle its operations, with a Training of Trainers programme offering the native experience wanted to maintain the undertaking.
“A building alone does not create entrepreneurs,” he mentioned, explaining that the centre was meant to attach start-ups with buyers, private-sector operators and improvement companions.
He additionally disclosed that KOICA was working with the Food and Agriculture Organisation to advertise agricultural improvement 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 expertise sources.
The ambassador mentioned 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 accumulate experience in data expertise, public administration and well being.
He added that future cooperation would more and more contain non-public firms, 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 chance 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 mentioned, was working in the direction of increasing its Official Development Assistance to $10 billion by 2030 and offering $14 billion in export financing to help its firms 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 mentioned cultural exchanges have been creating extra 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 folks had participated in programmes organised by the Korean Cultural Centre Nigeria since its institution, whereas current cultural and sporting occasions had attracted rising youth participation.
The ambassador, a former army officer who spent 36 years in uniform earlier than getting into the diplomatic service, mentioned he meant 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 mentioned.
