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Permits/Approvals Regulating Alien Participation In the Nigerian Business Environment



a)           Business Permit: This is issued by the Nigerian Investment Promotion Commission pursuant to section 8(1)(b) of the Immigration Act with the written consent of the Minister of Internal Affairs (Minister of Interior) to a foreign company intending to do business in Nigeria by way of Foreign Direct Investment.

b)          Expatriate Quota: This is the official approval granted to a company (alien company) doing business in Nigeria by the Ministry of Interior through the Chief Federal Immigration Officer, to enable it employ individual experts to specifically designated jobs and the quota must state its duration: section 8(1)(a) of Immigration Act. It is of two (2) types:

(a)        The PUR (Permanent until Reviewed) granted to the Chairman of the Board of Directors or Managing Director; and

(b)        The Temporary which is granted for a period of five (5) years at first instance, renewable for a further period of two (2) years.

Please note that it is the duty of the company to apply for the Quota not that of the employee: Oil Field Supply Centre v. Johnson.

c)           Residence Permit: This is granted to an alien individual staying in Nigeria beyond 3 months to enable him be a shareholder or subscriber of a company registered in Nigeria. A similar permit is a Work Permit. A person with a Residence Permit may be issued a work permit if the person desires to be an employee. However, a separate application for Work Permit and Residence Permit is no longer necessary with the introduction of CERPAC (Combined Expatriate Residence Permit and Alien Card) in 2002 which is compulsory for expatriates staying in Nigeria for more than 56 days with exception of ECOWAS citizens and accredited diplomats and children below 15 years.

d)          Registration/Approval of the Securities and Exchange Commission in the case of Foreign Direct Investment and Foreign Portfolio Investment.

e)           Registration/Approval of the Nigerian Investment Promotion Commission: By section 20 of the Nigerian Investment Promotion Commission Act an enterprise in which foreign participation is permitted must apply for registration with the Nigerian Investment Promotion Commission before commencing business in Nigeria.

f)        Registration/Approval of National Office for Technology Acquisition and Promotion: By section 5 of the National Office for Technology Acquisition and Promotion Act an agreement involving transfer of foreign technology to Nigerian partners shall be registered with National Office for Technology Acquisition and Promotion from the date of execution or conclusion of the agreement. Transfer of technology involves the use of Trade Marks; right to use patented inventions; supply of technical expertise in the form of preparation of plans, diagrams, operating manuals or any other form of assistance of any description whatsoever. It also includes the supply of basic or detailed engineering technology, supply of machinery and plant and the provision of operating staff or managerial assistance and training of personnel. Nevertheless, non-registration does not void the contract, but frustrates transfer of fees due under the contract to the account of foreigner.

g)           Notice of Intention to Incur Capital Expenditure: By section 3 of the Industrial Inspectorate Act, any person proposing to start a new undertaking or in the case of an existing undertaking, to incur additional capital expenditure of not less than N20,000 naira must give to the Director Industrial Inspectorate Division of the Federal Ministry of Industry (now Trade & Investment) notice of his intention to incur capital Expenditure.


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