Nigerian and Canadian business leaders say a direct flight agreement between both countries could unlock billions of dollars in trade and investment, expand cargo capacity and deepen economic ties.

Their position was outlined at the Nigeria Canada Business Association’s third annual business roundtable, which brought together diplomats, private-sector leaders and trade experts to assess the future of bilateral commerce.

Although both governments announced a code-sharing arrangement in March 2025 to improve aviation links, the agreement does not include approval for direct flights. At the time, the Aviation Minister’s adviser, Gbenga Saka, noted that talks were still preliminary and would require both countries to designate airlines.

At the meeting, Canada’s Deputy High Commissioner to Nigeria, Carlos Rojas-Arbulú, said enhanced air services, especially a direct flight agreement long requested by stakeholders, is critical to expanding trade and easing travel. He clarified that the current code-share deal does not amount to direct connectivity.

“Canada wants to bet on West Africa, and we want to bet on Nigeria. This is an immense consumer market that can catalyse growth for Canadian companies,” he said.

He added that while airlines such as Air Peace, Air Canada or Air Transat may be interested in serving the route, any decision must align with regulatory, security and commercial considerations. He described the potential benefits as substantial, noting that direct flights would reduce travel burdens, expand cargo movement and support growth across agriculture, energy, technology and professional services.

On the stalled 2014 Foreign Investment Promotion and Protection Agreement, Senior Consultant Franca Ciambella explained that the treaty, though signed, was never ratified by Nigeria, which renders it ineffective.

She stressed that while FIPAs do not directly raise trade volumes, they signal policy stability and offer investor safeguards such as protection against expropriation, fair treatment, free transfer of earnings and access to arbitration.

KPMG Nigeria Partner Akinwale Alao urged Canadian firms looking toward Nigeria to pay attention to sweeping tax reforms taking effect on January 1, 2026. He advised investors to understand the new rules, seek professional guidance and take advantage of protections under the Nigeria-Canada Double Tax Treaty.

Alao said Nigeria remains one of Africa’s most promising markets, pointing to recent improvements in inflation, foreign exchange stability and long-term growth prospects. He noted strong opportunities in manufacturing, agro-processing, technology and export services for businesses willing to take a long-term view.

He highlighted the government’s push to expand export trade and outlined available incentives, including the new Economic Development Incentive, which grants eligible investors an annual tax credit of five per cent of qualifying capital expenditure for up to five years, with possible renewal.

Alao added that the double tax treaty provides practical advantages, including clear rules that prevent double taxation and allow tax authorities in both countries to work together on disputes. He also encouraged investors to study Nigeria’s laws closely and prioritise compliance, noting that enforcement has become more assertive.