FOREIGN INVESTORS IN NIGERIA

One of the common rhymes we hear in our society is unemployment.As required by law,every citizen has laid down procedures to follow when establishing a company and creating jobs.

Are the procedures the same with foreigners who intend to invest and create jobs in Nigeria?

Here is the laid down procedures which a foreigner must adhere strictly to so as not to conflict with the laws of the Federal Republic of Nigeria.

Section 20 of the Companies and Allied Matters Act allow foreigners to float a company in Nigeria ,a non Nigerian whether a company or an individual may invest and participate in the formation of a company, but except those prohibited by the Nigerian Investment Promotion Act 2004 (this shall be discussed extensively in the cause of this discussion)

 

Every foreigner intending to carry on business in Nigeria must take all necessary steps to incorporate as Nigerian company until this is done the foreign investor cannot carry on business in Nigeria.

STEP BY STEP ON INCORPORATION

(I)                 Legal practitioner: The service of a legal practitioner is required in order to carry out registration, the legal practitioner shall be provided with particulars of foreign investors which include the particulars of the directors, share capital, address of the proposed office, memorandum and articles of association.

(II)               Obtain the incorporation forms from the corporate affairs commission.

(III)             Availability and reservation of names shall be carried out at the corporate affairs commission.

(IV)             Incorporation documents which includes two copies each of memorandum and articles of association of the proposed company, two copies of share capital, all documents shall be stamped and filled at the CAC

(V)               The certificate of incorporation must be obtained from CAC as prima facie evidence of incorporation.

Note that failure to comply with the above laid down procedures; every officer of the company shall be guilty of an offence and liable on conviction to a fine

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PROHIBITED INVESTMENTS ARE AS FOLLOWS

(I)                 Production of arms and ammunition

(II)               Production of narcotic drugs

(III)             Production of military and paramilitary wears i.e. police,lastma,customs uniform

(IV)             And such other items as the federal executive council may from time to time determine.

FOREIGN COMPANIES EXEMPTED FROM REGISTRATION

A foreign company may be exempted from registration if it belongs to one of the following:

(i)                  Foreign companies invited to Nigeria by or with the approval of the federal government to execute any specified project.

(ii)                Foreign companies which are in Nigeria to execute specific project on behalf of a donor country or international organization i.e. World Bank assisted projects to farmers etc

(iii)               Engineering consultants on any individual specialist project under contract with the approval of the federal government.

Note that an exempted company will have the status of an unregistered company and an exemption is not a license to disregard the rule of law.

Oyenike Alliyu-Adebiyi LLB(hons)BL