The 1990 France-Nigeria tax treaty: a ceiling of 12.5 % and pensions taxed at source

The France-Nigeria tax treaty caps the withholding tax on interest (excluding exemptions under Article 11, paragraph 3), royalties, and dividends paid to a company that directly holds at least 10% of the share capital at 12.5%. The cap rises to 15% for other dividends. Two key principles distinguish this treaty: pensions are taxable in the country of origin, and each country taxes capital gains according to its own laws. The treaty applies only to income taxes.

A text from 1990, applied since 1992

Signed in Paris on February 27, 1990, the convention entered into force on May 2, 1991, and has been applicable since January 1, 1992, for withholding taxes and other taxes, on both sides. List BOI-ANNX-000306 (April 29, 2026) classifies it as a convention solely concerning income tax, without amendments. On the Nigerian side, Article 2 covers personal income tax, corporate income tax, oil profits tax, and capital gains tax.

Maximum deductions and key rules

Pensions and earnings: the text refers to the source and domestic law

Pensions. Article 19, paragraph 1, subjects pensions and annuities paid in respect of previous employment to the tax of the state from which they originate. The text does not define this term and does not specify a tax rate.

Capital gains. Article 13 § 1 does not allocate the right to tax: each State applies its own legislation. Only profits from ships and aircraft in international traffic are reserved for the State of residence of the company (§ 2).

Residence: an agreement for companies

Article 4, paragraph 2, distinguishes between natural persons resident in both States: permanent home, center of vital interests, habitual residence, nationality, and then agreement of the competent authorities. For other persons, paragraph 3 refers to this agreement.

Tax credit in France, clause for incentives

Article 23 excludes the deduction of Nigerian tax and grants a tax credit against French tax, capped at the corresponding French tax. A clause addresses Nigerian tax incentives. Article 30 stipulates that the convention remains in force until terminated, with a minimum notice period of six months.

Dividends and interest: typical case (fictitious profile)

Situation. A French company (fictitious profile), which directly owns 10 % shares in a Nigerian company, receives €100,000 in gross dividends. A French resident individual receives €40,000 in gross interest from a Nigerian source.

Issue. What is the maximum tax that Nigeria withholds at source?

Strategy. Articles 10 § 2 a) and 11 § 2.

Result. Dividends: €12,500 (12.5% %), compared to €15,000 at a rate of 15% %: a difference of €2,500. Interest: €5,000 (12.5% %), excluding the exemption under Article 11 § 3. These figures are maximums, not the tax due.

What this page does not cover

Nigerian tax rates, Article 11 § 3 interest exemptions, technical services (protocol), and information exchange are not detailed. Wealth and inheritance are not addressed.

What changes depending on your situation

• Your residence as defined in the agreement.
• The origin of your pensions and the nature of your income.
• The percentage of capital held and its direct nature.
• The number of days spent in each state over twelve consecutive months.

An article should be read in light of the facts in your case; no result is guaranteed in advance.