A REVIEW OF THE REGULATORY REQUIREMENTS FOR FOREIGN PARTICIPATION IN THE NIGERIAN BUSINESS ECOSYSTEM
DOI:
https://doi.org/10.63456/jpslg-2-1-57Keywords:
S M Nazmuz Sakib, Multidisciplinary Research, Climate Feedback, , Ge- ometry, Blockchain, International RelationsAbstract
As one of Africa’s largest economies, Nigeria offers a wide range of opportunities for foreigners to participate in its business sector. With the increasing growth in commercial activities in Nigeria, coupled with its population growth which currently stands at over 237 million, Nigeria offers a wide range of opportunities for both foreign direct and foreign portfolio investments. Foreign participation in business in Nigeria is regulated by various statutory and regulatory frameworks, which are all geared towards
providing equal opportunities for both local players and foreign investors alike, to do business and thrive. This article aims to provide an in-depth exposure to the various legislative and regulatory requirements for foreign participation in business in Nigeria, dissecting the relevant legislations, regulatory bodies, relevant business structures and the procedural requirements for foreigners participating in the Nigerian business environment. Furthermore, this work appraises the potential challenges foreign investors might encounter and offers strategic recommendations towards a successful and seamless market entry for foreign investors. This work was initially prepared as a presentation, in partial fulfilment of the requirements for a successful completion of My Internship experience at The Law Crest LLP.
References
1.Aderonke Alex-Adedipe and Oghenekhare Faith Isiorho, “A Foreigner’s Guide To Establishing A Business in Nigeria” (2021) https://pavestoneslegal.com/a-foreigners-guide-to-establishing-a-business-in-nigeria/accessed May 18, 2025.
2. O. M. Atoyebi, SAN., and Romeo Osogworume, Esq., “Foreign Participation Regulations in Nigerian Businesses” (2024) https://omaplex.com.ng/foreign-participation-regulations in nigerian businesses/#:~:text=In%202020%2C%20the%20United%20Nations,foreign%20participation%20in%20Nig
erian%20businesses. Accessed May 18, 2025.
3. Companies and Allied Matters Act (CAMA), No. 3, 2020, s 20(4).
4. O. M. Atoyebi, SAN (Supra).
5. CAMA 2020, s 42.
6. Ibid, s 8.
7. O. M. Atoyebi, SAN (Supra).
8. Aelex, “Foreign Owned Companies Must Now Have N100 Million Minimum Paid-up Capital” (2024)
Aelex<https://www.aelex.com/foreign-owned-companies-must-now-have-n100-million-minimumpaidupcapital/>accessed May 18, 2025.
9. Minister of Interior, “Requirements for Expatriate Quota – eCitibiz” https://candb.interior.gov.ng accessed May 18,
2025.
10. Seun Timi-Koleolu and Nuratulahi Yishawu, “Share Capital Requirement for Companies With Foreign Participation
in Nigeria” (2023) Pavestones https://pavestoneslegal.com/share-capital-requirement-forcompanies-with-foreignparticipation-in-nigeria/ accessed May 18, 2025.
11. Ibid.
12. Nigeria Investment Promotion Commission (NIPC) Act, Decree No. 16 of 1995, ss 17 and 18.
13. Ibid, s 31.
CAMA 2022, s 18(2).
15. Ibid, s 22.
16. Ibid, s 24.
17. Ibid, s 19.
18. Ibid, s 26.
19. Ibid, s 25.
20. Ibid, s 80(1)(a-d)
21. Ibid, s 78 (3) (a-b).
22. Business Facilitation (Miscellaneous Provisions) Act, No. 5, 22, Part. 1, para. 2.
23. NIPC Act, s 1.
24. Ibid, s 4.
25. Foreign Exchange (Monitoring and Miscellaneous Provisions) Act No. 17 of 1995
26. Ibid, s 1.
27. Ibid, s 15(4).
28. Ibid, s 17.
29. Ibid Ibid, s 15.
30. Ibid, s 41.
31. Nigerian Immigration Act, 2015, as 37, 38 and 39.
32. Nigerian Immigration Regulations, 2017, ss 11, 12,13, and 14.
33. Nigeria Immigration Service, “Cerpac” https://immigration.gov.ng/combined-expatriate-residencepermit-and-alienscard-cerpac/ accessed May 18, 2025.
34. Nigerian Startup Act, 2022, s 13.
35. Guidelines and Requirements for the Grant of Oil and Gas Industry Service Permits )OGISP), 2023, issued by the
Nigerian Upstream Petroleum Regulatory Commission.
36. BOFIA, Act. No. 5, 2020
37. Ibid, s 1.
38. Ibid, s 2(1).
39. Ibid, s 4.
40. Seun Timi-Koleolu and Ebikeniye Best, “Licensing Requirements for Banks and Other Financial Institutions in
Nigeria” (2024) Pavestoneshttps://pavestoneslegal.com/licensing-requirements-for-banks and-other-financial
institutions-in-nigeria/ accessed May 18, 2025.
41. NCA No. 19, 2003.
42. Ibid, s 70 (1).
43. Ibid, s 70(2).
45. LUA, Cap. L5 Laws of the Federation of Nigeria, 2004.
46. For example, Acquisition of Land by Aliens Law of Lagos State, 1971, ss 1-3 lists requirements for foreigners seeking
to acquire land in Lagos.
47. (2017) 14 NWLR (PT 1586) 396.
48. CAMA 2020, s 8.
49. Ibid, s 8.
50. Ibid, s 36(2)(a)
51. Ibid, s 36(2)(b)
52. Ibid, s 36(2)©
53. Ibid, s 36(2).
54. Ibid, s 36(4)©
55. Ibid, s 37.
56. Ibid, s 36(4)(a)
57. Ibid, s 36(1) & (4)(e)
58. The Immigration Act, 2015, s 36(1)
CAMA 2020, s 22(5)
60. CAMA 2020, s 26(4)
61. Partnership Act, 1890, s 1(1).
62. CAMA 2020, part. D
63. Ibid, s 795(3)
64. Ibid, part D.
65. Ibid, s 746.
66. Ibid, s 765.
67. Ibid, s 748.
68. (2019) LPELR-47620 (SC).
69. CAMA 2020, s 765-767.
70. Ibid, s 22.
71. Ibid, s 24.
72. Ibid.
73. Ibid, ss 330 and 332.
74. Ibid, s 237.
75. Ibid, s 26.
76. Ibid, s 26(4).
