India has a double taxation agreement (DBAA) with 88 countries, but 85 are currently in force. The DBA Convention was signed in order to avoid double taxation of the same asset declared in two different countries. Meanwhile, it should be noted that Nigeria`s thirteen double taxation treaties are far from the number of other industrialized and developing countries. For this way, the United Kingdom currently has SDRs with 131 countries, Canada with 92 SDRs and Malaysia with 68 TDTs. Current statistics have shown that there is a positive correlation between DTT and the influx of foreign direct investment into Nigeria. As a result, and to accelerate Nigeria`s growth to become one of the 20 largest economies in the world, it is clear that Nigeria needs to expand its current DTT network. According to contracts (manufacturing processes, etc.) Act1 (TMPA), treaties are defined as instruments by which an international commitment is made between the Federation and any other country and includes “conventions”, “acts”, “general acts”, “protocols”, “agreements” and “Modi-vivendi”, whether bilateral or multilateral. Therefore, a treaty is a treaty between sovereign States that can be bilateral; when it is binding or multilateral between two States; in this case, it is binding on more than two States. Worldwide, domicile and source taxation are two principles that advance the taxation of corporate actors in international markets/economies. Therefore, an inevitable risk for multinational enterprises that have cross-border investments/transactions is double taxation.
The search for new markets with the best margins clearly implies that multinationals will continue to invest in different economies outside their country or country of origin. This makes double taxation a clear and present risk for these companies. If contracts are signed with other countries in Nigeria, they do not automatically have the force of law. Article 12 of the Constitution of the Federal Republic of Nigeria of 1999 expressly provides that a treaty between Nigeria and another State before it becomes law must be brought into force by the National Assembly. . . .