Business Legislations and Resources in Nigeria

INVESTMENT LEGISLATION’S IN NIGERIA.

It is well documented fact that Nigeria, a country of well over 140,000,000 people with a population growth of 5.7% per annum represent the largest market for any product and services meant for the African continent. This market guarantees an expanding and sustainable demand for product and services in the Power/Energy, Oil & Gas (extractive and non-extractive), Agriculture & Agro Allied, Waste Management, Maritime, Shipping and Ports, Solid Minerals, Banking & Financial services, Tourism / Hospitality, Pharmaceuticals and Health services, Information & Communication Technology (ICT) and Manufacturing sectors of the Nigeria economy.

It is instruction to note that Nigeria has the highest return on investment (RoI) in Africa, generally between 35% -45% (70 –100% in some sectors), is one of leading destinations of Foreign Direct Investment {FDI} on the Africa mainly into the petroleum and telecommunication sector and surely the next sector with much need for investment and having the market for development in Nigeria is the generation, transmission and distribution of power. As the nation embarks on a road show across the world to showcase the investment opportunity in the generation, transmission and distribution in the power/energy sector, the aim of this article is drawn the attention of willing investors to some basic investment legislations in Nigeria.

The Nigerian Investment Promotion Commission Act 16 of 1995; Investment Protection Guarantees Non-expropriation of Investment: The NIPC Act No. 16 of 1995 guarantee that ‘No enterprise shall be nationalized or expropriated by any government of the federation 100% ownership of investment in any sector (except ones listed in the ‘negative list’) irrespective of nationality Guarantee of unconditional transferability/repatriation of funds through an authorized dealer, in freely convertible currency

Also under the Foreign Exchange (Monitoring & Miscellaneous Provisions) Act 17 of 1995, investors are free to repatriate their profits and dividends net of taxes through any authorized dealer in freely convertible currency.

Full text of the following investment related laws can be found on our online business forum at www.nigeriabusinessplace.com .

PUBLIC PROCUREMENTACT, 2007
INFRASTRUCTURE CONCESSION REGULATORY COMMISSION (ESTABLISHMENT, ETC) ACT, 2005
Banks and other Financial Institutions Decree 1991
REVISED GUIDELINE ON BUSINESS PERMIT AND QUOTA
Bills of Exchange Act 1990
Environmental Impact Assessment Decree 1992
Nigerian Oil and Gas Industry Content Development Bill 2010
National Minerals and Metals Policy
Coastal and Inland Shipping (Cabotage) Act 2003

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Foraminifera Market Research Limited (www.foramfera.com) is part of a family of businesses, which includes several brands such as

Hausworth Nigeria Limited owners of

365 Home Improvement — www.365homeimprovement.com (Nigeria’s One Stop Home Improvement Portal)
365 Property Portal — www.365propertyportal.com (Property listing, building materials sales and movers in Nigeria)

Kyneli Business Support Services owners of

www.365campaigner.com

365 Campaigner is a complete suite of social collaboration, communication and management tools for your team. From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities.

365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals.
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At Foraminifera Market Research (www.foramfera.com), we provide bespoke and up to date market research reports. Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.

Access our other Market Research Reports or investment opportunities in Nigeria by clicking on the link below

MARKET RESEARCH REPORTS IN NIGERIA
INVESTMENT OPPORTUNITIES IN NIGERIA

Do you require a business plan or feasibility report on the subject matter? Contact us with any of the details provided below to arrange a meeting

Office Phone Number: 01- 295 24 13 (Monday – Saturday; 8 am – 5 pm)

Mobile Number: +234 (0) 8033782777;+ 234 (0) 908 335 7733 (Monday – Saturday; 8 am – 6 pm)

E-Mail Address: enquiries@foramfera.com

CC: foraminiferamarketresearch@yahoo.com

Office Address:

61-65 Egbe- Isolo Road,

Iyana Ejigbo Shopping Arcade,

Block C, Suite 39,

Iyana Ejigbo Bus Stop,

Ejigbo, Lagos.

CABOTAGE LAW AND IT’S BENEFIT TO THE ECONOMY IN NIGERIA

The Coastal and inland shipping ACT otherwise known as the Cabotage ACT was enacted in 2003 in order to restrict the use of Foreign Vessels in domestic coastal trade to promote the development of Indigenous tonnage and to establish a cabotage vessel financing fund and for related matters.

The ACT is stratified into nine parts and dealing with different aspects of the ACT namely

Part 1 Short Title And Interpretation, Part II Restriction of Vessels In Domestic Coastal Trade ,Part III Waivers ,Part IV Licence To Foreign Vessel ,Part V Registration, Part VI Enforcement ,Part VII Offences ,Part VIII Cabotage Vessels Financing Fund ,Part IX Miscellaneous.

Nigeria aspires to be amongst the top 20 largest economies by the year 2020 according to the economic policy of Vision 2020 and successful implementation of the Cabotage Laws in Nigeria is critical to the success or otherwise of the plan because of the important role shipping plays in not just the movement of goods and services around the country and the revenues collected as tax from companies in the sector.

The ACT would also catalyze the growth and development of the transportation sector due to the over dependence of the nation on road transportation and the consequent damage of the roads since the collapse of the railway system in Nigeria. The growths are expected when the dredging activities currently going on in the nation’s inland waterways are concluded.

Other benefit of the ACT also includes creation of employment opportunities, development of inland waterway depot and technology transfer in the areas of repair and building of vessels in the country.

Do you seek shipping and maritime opportunities in Nigeria ,want to the full cabotage ACT or you just want to know more about the subject matter as it affects Nigeria, Please do visit our sister website www.nigeriabusinessplace.com, register and click on the maritime board and start you rewarding contributions.

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Foraminifera Market Research Limited (www.foramfera.com) is part of a family of businesses, which includes several brands such as

Hausworth Nigeria Limited owners of

365 Home Improvement — www.365homeimprovement.com (Nigeria’s One Stop Home Improvement Portal)
365 Property Portal — www.365propertyportal.com (Property listing, building materials sales and movers in Nigeria)

Kyneli Business Support Services owners of

www.365campaigner.com

365 Campaigner is a complete suite of social collaboration, communication and management tools for your team. From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities.

365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals.
———————————————————————————————————————

At Foraminifera Market Research (www.foramfera.com), we provide bespoke and up to date market research reports. Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.

Access our other Market Research Reports or investment opportunities in Nigeria by clicking on the link below

MARKET RESEARCH REPORTS IN NIGERIA
INVESTMENT OPPORTUNITIES IN NIGERIA

Do you require a business plan or feasibility report on the subject matter? Contact us with any of the details provided below to arrange a meeting

Office Phone Number: 01- 295 24 13 (Monday – Saturday; 8 am – 5 pm)

Mobile Number: +234 (0) 8033782777;+ 234 (0) 908 335 7733 (Monday – Saturday; 8 am – 6 pm)

E-Mail Address: enquiries@foramfera.com

CC: foraminiferamarketresearch@yahoo.com

Office Address:

61-65 Egbe- Isolo Road,

Iyana Ejigbo Shopping Arcade,

Block C, Suite 39,

Iyana Ejigbo Bus Stop,

Ejigbo, Lagos.

REVISED GUIDELINE ON BUSINESS PERMIT AND QUOTA

(1)INTRODUCTION

The Citizenship and Business Department has responsibility for administering and enforcing the provisions of the immigration Act, 1963 relate to the establishment of business in Nigeria and the employment of expatriates. In other Words, the Department is entrusted principally with the following responsibilities;

(i) Issuance of Business Permit and expatriate Quota positions; and

(ii) Monitoring the execution of the quota positions granted in order to ensure effective transfer of technology to Nigerians and eventual indigenisation of the positions occupied by the Expatriates.

(2) GENERAL RULES APPLICABLE TO ALL COMPANIES

Every enterprise, desirous of obtaining Business Permit and Expatriate Quota, is to submit an application to that effect to the Federal Ministry of Internal Affairs on Form T/1 designed for that purpose Companies are, however, to note that emphasis would be placed on employment of Nigerians to understudy the foreign experts for the purpose of training them, to enable the understudies acquire relevant skills for the eventual take-over of the expatriate quota positions. Renewal of quotas granted will not be automatic but considered on merit based on submission of the required documents, as specified in paragraph 3 (C) of this Handbook.

(3) GRANT OF BUSINESS PERMIT / EXPATRIATE QUOTA POSITION

All applications by companies for Business Permit and expatriate Quota should be accompanied by the following documents:

(A) BUSINESS PERMIT

For only Joint Venture and wholly Foreign owned Companies.

(i) Completed Immigration Form T/1;

(ii) Certificate of Incorporation;

(iii) Memorandum and Article of Association;

(iv) Feasibility Report (should be certified or registered with Corporate Affairs Commission (CAC)

(v) Corporate Affairs Commission’s Form CAC 2.3 ^ 2.5 of CAC C02 & amp; C07

(vi) Joint Venture Agreement for partnership venture between Nigerian and foreigners (original to be presented for sighting);

(vii) Company’s Current Tax Clearance Certificate (Original to be presented for sighting);

(viii) Lease agreement for C of O for opening premises (original to be presented for sighting)

NOTE:

For Business permit, the Authorized share capital must not be less than N10 million in respect of each Company.

B. GRANT OF EXPATRIATE QUOTA ONLY

Same documents as in (a) above plus:

(i) Evidence of imported machinery, such as, Form M, Proforma invoice, Shipping documents and Clean Certificate of Inspection issued by Government appointed Pre-shipment Inspection Agents.

(ii) License / Permit / Certificate from relevant Government Agencies / department / ministries for the operation or execution of project if company is engaged in oil services, health care services, fishing, mining, constructions (Work Registration Board), etc (original to be presented for sighting);

(iii) Evidence of work at hand, its duration and value attached to the contract(s) if the company is engaged in building, civil engineering, construction, etc (original to be presented for sighting)

(iv) Proposed annual salaries to be paid to the expatriates to be recruited indicating designation, names, jobs description and qualifications (CV and copies of credentials of expatriate to be attached).

———————————————————————————————————————
Foraminifera Market Research Limited (www.foramfera.com) is part of a family of businesses, which includes several brands such as

Hausworth Nigeria Limited owners of

365 Home Improvement — www.365homeimprovement.com (Nigeria’s One Stop Home Improvement Portal)
365 Property Portal — www.365propertyportal.com (Property listing, building materials sales and movers in Nigeria)

Kyneli Business Support Services owners of

www.365campaigner.com

365 Campaigner is a complete suite of social collaboration, communication and management tools for your team. From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities.

365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals.
———————————————————————————————————————

At Foraminifera Market Research (www.foramfera.com), we provide bespoke and up to date market research reports. Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.

Access our other Market Research Reports or investment opportunities in Nigeria by clicking on the link below

MARKET RESEARCH REPORTS IN NIGERIA
INVESTMENT OPPORTUNITIES IN NIGERIA

Do you require a business plan or feasibility report on the subject matter? Contact us with any of the details provided below to arrange a meeting

Office Phone Number: 01- 295 24 13 (Monday – Saturday; 8 am – 5 pm)

Mobile Number: +234 (0) 8033782777;+ 234 (0) 908 335 7733 (Monday – Saturday; 8 am – 6 pm)

E-Mail Address: enquiries@foramfera.com

CC: foraminiferamarketresearch@yahoo.com

Office Address:

61-65 Egbe- Isolo Road,

Iyana Ejigbo Shopping Arcade,

Block C, Suite 39,

Iyana Ejigbo Bus Stop,

Ejigbo, Lagos.

NATIONAL POLICY ON MINERALS METAL IN NIGERIA

An established and well managed solid minerals sub-sector will accelerate economic, social and political growth of Nigeria by provision of gainful employment and a rise in national income earnings far exceeding the petroleum sector. In addition, solid minerals will provide local raw materials for industries and bring vital infrastructure and wealth to rural areas.

Solid minerals have capacity to provide the all important launching pad for the development of other sectors of the economy as well as give sense and meaning to the oneness of the Nigerian state as minerals are located in all states of the Federation. This will douse the agitation for resource control. It is therefore vital that the nation explores this latent potential which has slumbered over the years.

Solid minerals contributed immensely to the economic development of Nigeria in the pre-independence years. During this period, Nigeria was known for the production of coal as an energy source for electricity, railways and also for export. Tin, Columbite, Lead and Zinc were exported. Nigeria was the largest producer of Columbite at one point. The earnings from solid minerals, were used to develop roads, education, hospitals and in fact develop the petroleum industry.

The decline of the solid minerals industry started with the discovery of oil to an extent that Nigeria became a mono product economy and vulnerable to international oil politics. The domineering role of oil did not allow past governments to attend to global challenges that evolved in the development of solid minerals.

The neglect of the minerals industry led to disorder in the minesfield with strong presence of illegal miners whose activities are characterized by inefficient mining, illegal trading of highly priced minerals, severe ecological degradation, spread of diseases and huge loss of revenue to the government through smuggling.

On the other hand, Mining continues to play a key role in the development of Africa’s economies. Countries like South Africa,Ghana and Tanzania,remain critically dependent on the earnings of solid minerals.As a result,countries introduced liberal reforms to meet intense competition to attract investment funds.Ghana for example undertook significant reforms both in legal and institutional frame-work and to the general organization of the sector. The result has been growth in mining investment. Tanzania is now a leading destination for exploration funds due to the deliberate government attention to the development of mining. Burkina Faso and Mali have also become strong mining countries.

Following the global economic recession of the late 1980s and early 1990s, developing countries started liberalising their external trade to improve balance of payment, increase economic growth through the provision of incentives to attract capital in-flow and investment.

The developing countries especially in Africa and Latin America turned to Solid Minerals exploration as a solution to sustained economic growth. Nigeria’s economy which is largely dependent on a mono-product (petroleum) became vulnerable to fluctuations in oil prices with the attendant shocks on the economy. This informed the Federal Government’s decision to diversify the nation’s economic base from oil to the non-oil sectors including the development of solid minerals resources.

An internal analysis in reaction to the global economic recession led to key policy review which was completed and endorsed at the middle of the 1990s for implementation. The policy review led to a number of important actions including the creation of the Ministry of Solid Minerals Development in 1995.

Efforts had earlier been made towards the development of the sector which include the following:

• The New National Policy on Solid Minerals Development, 1998

• The enactment of the Minerals and Mining Act, 1999

• Development of the Seven Year Strategic Action Plan for Solid Minerals Development in Nigeria, (2002 2009);

• Establishment of Nigerian Geological Survey Agency.

• Establishment of Sustainable Management of Mineral Resources Project – a World Bank assisted programme.

• Establishment of the Mining Cadastre Office to grant mining permits and licences

• Establishment of the Mines Environment Compliance Department to ensure best International practice.

• Establishment of the Artisanal and Small Scale Mining Department as a focussed department for small entrepreneurs and local content

• Enactment of the Minerals and Mining Act 2007.

Previous policy decisions and instruments, although well meaning, have not produced the desired results and the outcomes for which they were developed. As a result, for the sector to develop beyond its low level, it became apparent that a reform of the policy is required.

These decisions and instruments, developed in recent times have brought about significant change in perception and interest in the sector. However there is now a need to deepen the interests and develop further, the enabling environment for the sector to grow to the next level.

In addition, there is a constant need to respond to the changing environment in the global mining industry and to situate this within the context of MDG andNigeria’s development agenda especially National Economic Empowerment and Development Strategy (NEEDS) 1,(2004) and NEEDS 2,(2007).

PLEASE DO KNOW THAT THE ARTICLE ABOVE WAS TAKEN FROM THE INTRODUCTORY PART OF THE POLICY WHICH WAS DOWNLOADED FROM THE MINISTRY OF SOLID MINERALS AND STEEL DEVELOPMENT WEBSITES.

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