On that hated poll in the current electoral calendar in Nigeria, the headlines by leading newspapers panicked and troubled many stakeholders. Magically, Vanguard, a highly respected national brand, put it in the minds of citizens that yes indeed Peter Obi “leads”. Since in politics, when you are arguing or complaining, you are losing, it was then left for APC and PDP to fight on that declaration.

The Labour Party stayed over the fray while others were arguing over statistics. The headlines were more politically lethal than the polls as they changed the perceptions of the citizens. 

I have gone through the headlines and can conclude: if Peter Obi ends up winning the presidency, the newspapers in Nigeria are the catalysts. They cemented what many felt was an effervescence into a stable solid state political movement [Mr Udeagu Jr who taught me Chemistry in secondary school, thank you].

Ndubuisi: “Mother, why do they say my eyes are big”

Mother: “They are jealous since you need big eyes to see mathematics better”

After she gave me that answer, and I used it  to respond to two bullies in school, they never made that joke again, as they wished they had bigger eyes since I was “seeing” mathematics better.

The newspaper headlines gave Obi a really great answer: “2023: Peter Obi leads…” Yes, he “leads” even if that is just a “a presidential poll”. Please plan to vote as electoral polls, unlike others, have results because elections happen!

The Most Hated Poll Right Now in Nigeria and the Road to Aso Rock in 2023

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Comment 1: Perception is everything……the trailing PDP & APC did not see the Obi’s LP third force coming from their earlier permutations, they are currently playing catch up and need to go back to the drawing board and restrategize if it’s still possible

The crypto-triggered evolution of Central Bank Digital Currency (CBDC) has come with a contagious wave that is catching up with economies across the globe.

On Friday, the White House indicated that the Biden’s administration is moving a step closer to developing a CBDC, a push it’s making to cement dollar’s leading role in the global financial system.

This came on the heels of China’s push for the adoption of its own digital currency eYuan.

The White House said the US’ development of a digital currency took off in March after President Joe Biden issued an executive order calling on a variety of agencies to look at ways to regulate digital assets.  The agencies came up with nine reports, covering cryptocurrency impacts on financial markets, the environment, innovation and other elements of the economic system.

Cryptocurrency, which is perceived as a threat to fiats, stirred the world’s consciousness on the need for a digital currency alternative – pushing the growing trend of countries creating a digital version of their fiats.

China’s move to create eYuan rattled the US as it was seen as a potential vehicle for the yuan to topple the US dollar in the global financial system, prompting Washington to launch a quick study on how to develop its own digital currency.

Part of the task given to agencies by the Biden’s administration is to create a policy framework for a potential digital currency.

Treasury Secretary Janet Yellen said one Treasury recommendation is that the U.S. “advance policy and technical work on a potential CBDC, so that the United States is prepared if CBDC is determined to be in the national interest.”

“Right now, some aspects of our current payment system are too slow or too expensive,” Yellen said on a Thursday call with reporters.

Apart from the US and China, other countries, including G7 members, are also developing policy frameworks for digital currencies or are already trialing it for adoption. Nigeria has already launched its own dubbed the eNaira.

The trend was noted by the Atlantic Council nonpartisan think tank, which said that 105 countries representing more than 95% of global gross domestic product already are exploring or have created a central bank digital currency.

However, the council found that the U.S. and the U.K. are far behind in creating a digital dollar or its equivalent.

The Biden’s administration’s policy framework has to be developed using reports from different agencies. The Treasury, the Justice Department, the Consumer Finance Protection Bureau, the Securities and Exchange Commission and other agencies were tasked with contributing to reports that would address various concerns about the risks, development and usage of digital assets. Several reports are expected to be out in the coming weeks and months.

However, several experts quoted by AP shared different opinions on the report, cryptocurrency and the US’ late move to develop a digital currency.

Eswar Prasad, a trade professor at Cornell who studies the digitization of currencies, said Treasury’s report “takes a positive view about how a digital dollar might play a useful role in increasing payment options for individuals and businesses” while acknowledging the risks of its development.

He said the report sets the stage for the creation of agency regulations and legislation “that can improve the benefit-risk tradeoff associated with cryptocurrencies and related technologies.”

The Blockchain Association, which lobbies lawmakers on Capitol Hill, said in a statement that the White House reports are “a missed opportunity to cement U.S. crypto leadership.”

“These reports focus on risks — not opportunities,” the statement reads, “and omit substantive recommendations on how the United States can promote its burgeoning crypto industry, including job creation, improvements to the financial system, and expanded access for all Americans.”

On Capitol Hill, lawmakers have submitted various pieces of legislation to regulate cryptocurrency and other digital assets.

Sheila Warren, CEO of the Crypto Council for Innovation, said in an emailed statement that the report “seem to kick the can down the road” she said, “we don’t see clear recommendations.”

The director of the National Economic Council, Brian Deese, told reporters that “we’ve seen in recent months substantial turmoil in cryptocurrency markets and these events really highlight how, without proper oversight, cryptocurrencies risk harming everyday Americans’ financial stability and our national security.”

“It is why this administration believes that now more than ever,” he said, “prudent regulation of cryptocurrencies is needed.”

He said on Friday that the Administration plans to “execute a comprehensive action plan with priority steps to mitigate key risks of cryptocurrencies — among others, money laundering and financing for terrorism.”

It is a known fact that a business that is not registered to do business in Nigeria basically lacks a Legal/Corporate personality and in some regulated business sectors, is barred from participating in particular types of businesses such as Banking, Moneylending, or Courier services.

The requirement level for Foreign businesses becomes even higher when they seek to operate directly in Nigeria through subsidiaries. Nigerian law makes it perfectly clear that a Foreign national/citizen or company cannot engage in business operations of any sort in Nigeria without registering a company in Nigeria with the Corporate Affairs Commission.

This article will be dealing with the topics of :-

– What correctly constitutes a foreign business/company in this context.

– The Regulatory Framework governing the Registration of Foreign companies in Nigeria.

– The requirements for registration of Foreign companies in Nigeria.

What is a Foreign company?

A foreign company is simply one that is registered by foreigners under the laws of another country to carry out business in that same country. 

For the purpose of this article, a company with Nigerian shareholders or founding members doesn’t fit the description of a foreign business but will be required to carry out certain Regulatory compliance measures where it has foreign members bringing in capital into the country or where the company has proposed directors who are foreigners that are to work in Nigeria.

What are the major Regulatory agencies in charge of the registration of foreign companies in Nigeria?

The registration of foreign companies in Nigeria is governed mainly by the following Regulatory agencies :-

– The Ministry of Interior.

– The Nigerian Immigration Service

– The Corporate Affairs Commission (CAC)

– The Securities and Exchange Commission (SEC)

– The Nigerian Investment Promotion Commission (NIPC)

– The Federal Inland Revenue Service (FIRS) and other State Revenue agencies.

– Sector-specific apex regulators such as the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC)

Can foreign companies actually operate without the need for registration in Nigeria?

Yes they can, but only through a process known as EXEMPTION which is a registration waiver given to foreign companies that are :-

a). Invited by the government to carry out specialized projects which can be either infrastructural development projects or specialized technology transfer projects. 

b). Foreign companies exempted by the Companies Act of 1968.

c). Foreign Government-owned companies engaged in export promotion.

d). Foreign companies exempted by treaties to which Nigeria is a party.

e). Foreign companies in Nigeria for the execution of a loan project on behalf of a donor agency of any international organization.

This process is usually commenced by a written application to the Secretary to the Federal Government (SGF), however it should be noted that exempted companies might still be required to file compliance returns to the Corporate Affairs Commission and can sue & be sued despite the fact that they are basically unregistered companies.

Can foreign companies registered in Nigeria engage in any type of business?

Yes and no. The following businesses are not to be engaged in by foreign companies in Nigeria:-

– The production of arms and ammunition.

– The production, trafficking and selling of narcotics and psychotropic drugs.

– The production of military and paramilitary uniforms.

– Any other item as determined by the Federal Executive Council (FEC).

Do foreign companies to be registered in Nigeria come with a minimum capital requirement?

Yes they do. Foreign companies seeking to be registered in Nigeria must do so with a minimum share capital of 10 Million Naira. 

What are the steps/requirements needed to register and operate a foreign company in Nigeria?

The steps needed to register a Foreign company in Nigeria are:

– Registration of a company with a 10 Million Naira share capital.

– Registration of the company with the Nigerian Investment Promotion Commission (NIPC).

– Securing business permits and expatriate quotas from the Ministry of the Interior.

– Obtaining a resident permit (CERPAC) from the Nigerian Immigration Service (NIS). 

– Registration of the company as a tax-paying entity with the Federal Inland Revenue Service (FIRS) and the relevant State Internal Revenue Service.

– Obtaining the relevant business license where applicable e.g. CBN licensing if it’s for a Banking and Finance/Fintech license . 

– Obtaining a certificate of capital importation where the proposed foreign company is importing it’s operating capital into Nigeria.

What are the requirements for registering a company with the Corporate Affairs Commission, obtaining a Business Permit & Expatriate quota, and obtaining a resident permit for a foreign company  seeking to operate in Nigeria?

For Business registration, you will need –

– 2 directors.

– A minimum share capital of 10 Million Naira.

– A business office address

– Particulars of the directors and company secretary of the proposed company.

The registration process can take 48 hours – 4 weeks and comes with the following cost implications :-

Foreign Company registration(10 Million Naira minimum share capital) :-

1. Name availability search/ reservation – 3600.00 Naira

2. Filing fees/Stamp duties – 411,000.00 Naira

3. Legal fees – 220,000 Naira

4. Miscellaneous costs – 20,000.00 Naira

Total :- 440,000.00 Naira

To secure a Business Permit, a foreign company needs to first carry out its NIPC Registration which can be commenced by its lawyer making an application on the online NIPC portal. This carries the following cost implications (subject to review by the relevant Regulatory agencies)

Statutory Costs :- 15,000.00 Naira.

Legal fees :- 45,000.00 Naira

Miscellaneous costs – 10,000.00 Naira

Sum total – 70,000.00 Naira

This process also carries a time implication -of 24-72 hours

A Business Permit application is in turn needed for an Expatriate quota and is commenced via a proposed foreign company through its lawyer making an online application to the Ministry of the Interior. This process comes with the following cost implications regarding statutory charges and Legal fees:- 

Statutory fees :-

– Automation fee – 100,000.00 Naira

– Processing fee – 100,000.00 Naira

– Approval Fee – 100,000.00 Naira

– Portal Fee – 50,000.00 Naira

Statutory cost total – 350,000.00 Naira

Legal fees – 300,000.00 Naira

Miscellaneous costs – 50,000.00 Naira

Sum total – 700,000.00 Naira

This process carries a Time implication of 7working days to 3 weeks.

The same process also applies to Expatriate Quota grants which are necessary permits for the employment of an approved number of foreigners as staff of foreign AND Nigerian-owned companies registered in Nigeria and which carry the following cost implications:-

Statutory Fees 

Automation Fee – 100,000.00 Naira

Processing Fee – 100,000.00 Naira

Approval Fee – 50,000.00 Naira

Portal Fee – 50,000.00 Naira

Legal fees – 250,000.00 Naira

Miscellaneous costs – 50,000.00 Naira

Sum Total – 600,000.00 Naira

Expatriate Quota applications carry a time implication of 7 working days to 3 weeks.

For the purpose of hiring expatriate staff and having them being able to live with their dependents in Nigeria, a Subject To Regularization (STR) Visa/Permit grant by the Nigerian Embassy/Commission in the home country of the proposed expatriate staff will first be required  for the next step which is a Combined Expatriate Resident Permit & Aliens  Card(CERPAC) application.

STR applications carry a time implication period of 2 to 3 weeks and come with the following cost implications:- 

Statutory costs – Varies depending on the home country of the expatriate.

Legal fees – Not less than 150,000.00 Naira minus costs.

STR applications require the following among other requirements:-

1. A copy of the employment offer letter given to the expatriate.
2. An International passport with at least 6 months validity.
3. The expatriate’s CV/Resume.

CERPAC application

For a CERPAC grant( from which children , citizens of the West African ECOWAS area , diplomats, Non-Governmental Organizations, foreign wives of Nigerians, and officials of foreign governments are exempted), applications are commenced via Legal representation to the Nigerian Immigration Service and carry the following cost implications:- 

Statutory costs – $ 2,000(subject to review by the Nigerian Immigration Service/Ministry of Interior)

Legal fees – 550,000.00 Naira

Miscellaneous costs – 60,000.00 Naira

This process carries time implication frame of 14 working days.

CERPAC applications require among other requirements the following:-

1. An application letter from the expatriate’s employer requesting a regularization of stay and accepting the expatriate’s Immigration responsibility on his behalf.

2. The expatriate’s International passport with an STR Visa endorsement.

3. A copy of the employer’s expatriate quota approval from the Ministry of the Interior.

It should however be noted that time implication frames might be longer due to certain factors. Also , any defect in an application will result in a fresh application with the original fees so accurate application information as required by the relevant Regulatory agencies must be submitted to your lawyer when seeking any of the permits mentioned above.

How long do STRs and CERPAC grants last?

STR Visas last 90 days and are non-extendable while CERPAC grants last 2 years and are renewable every 2 years. 

Conclusion:- It can be seen from the above write-up that Foreign participation in Nigeria is quite regulated with the aim of protecting Nigerian content and businesses while providing an effective framework for regulating the entry and operation of foreign owned businesses and skilled manpower in Nigeria. It is thus also very necessary to seek the right professional guidance if you’re a foreign business person seeking to do business in Nigeria or a Nigerian business person seeking to hire foreign staff for your business operations in Nigeria.