Requirements for Grant of Business Permit and Expatriate Quota Approvals in Nigeria

Published On - August 29, 2023

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‘Business Permit’ is a certificate issued on the authority of Nigeria’s Minister of Interior, to Nigerian companies with foreign equity participation (either fully owned or partly owned by non-Nigerians) to enable the companies operate legally in Nigeria. ‘Business Permit’ does not expire, but can be revoked if the company’s operations or conducts begin to infringe on Nigeria’s laws.

‘Expatriate/ Establishment Quota’ is granted to companies/organisations, also by the Ministry of Interior, to enable these companies engage the services of expatriate personnel with skills and competences in fields that are in short supply or not available locally. The facility is for a period of three (3) years in the first instance, renewable every two years, twice within a lifespan of seven (7) years, except for approvals for companies in the oil and gas industry, whose approval will be for an initial period of 2 years and renewable once within a life span of 4 years.

Here are the general rules for grant of ‘Business Permit’ and ‘Expatriate Quota’ in Nigeria:

  1. Business Permit is granted to only wholly foreign owned or joint venture companies with foreign participation, with a minimum paid-up capital of N100,000,000 Million Naira to enable them to commence business in Nigeria. The value of equipment or machinery imported into the country for the purpose of conducting business could also form a portion of the paid-up capital to be invested in the country.
  2. Expatriate Quota is granted to wholly foreign, joint venture or indigenous companies/organization registered as limited by shares, limited liability partnership, business name, limited partnership, limited by Guarantee or Incorporated Trustees which have satisfactorily met the specified requirements. An eligible Expatriate is required to possess relevant academic qualification(s) of Bachelor Degree/Higher National Diploma or specific training certificate/demonstrated expertise in relevant profession.
  1. For each Expatriate Quota Position granted and on which an Expatriate is placed, two (2) Nigerian understudies with minimum qualifications of Bachelor Degree/Higher National Diploma or relevant training certificate should be employed to understudy the Expatriate.
  2. Returns showing the names, qualifications, National Identification Number or Tax Identification Number, phone numbers, e-mail addresses and training programme of such Nigerian understudies should be forwarded to the Ministry within a period of six (6) months of the issuance of approval.
  3. Expatriates engaged to fill approved quota positions are required to present proof of registration with the relevant regulatory professional bodies within six (6) months of arrival in Nigeria as applicable.
  4. Renewal of quotas granted shall be based on submission of all the required documents.
  5. The grant of additional expatriate quota shall be subject to either expansion or diversification of business, acquisition of new machinery or injection of fresh capital investment into the Company.
  6. Companies in the Oil and Gas Industry must obtain recommendations from Nigerian Content Development and Monitoring Board (NCDMB) before Ministry of Interior grants approval for Expatriate Quota.
  7. Companies in the aviation sector must obtain recommendations from Ministry of Aviation (Nigerian Civil Aviation Authority – NCAA) which is the regulatory body for aviation in Nigeria, before Ministry of Interior grants approval for Expatriate Quota.
  8. Only jobs on the Critical Skills list would be considered for Expatriate Quota upon sufficient proof by the individual employer that the positions cannot be filled by Nigerians.
  9. If a quota position expires but an application for renewal or relinquishment has not been submitted, the company’s eCITIBIZ (the function with the Ministry of Interior, that caters to expatriate quota processing) account (online platform) shall be disabled from processing any expatriate quota facility.
  10. Expatriates directly employed by Government are exempted from the grant of expatriate quota.
  11. The following professions are not eligible for the grant of Expatriate Quota except there exist verifiable evidence(s) that there is an exchange programme which Nigerians are participating in:

a. Teaching positions in the Secondary, Primary and Nursery Schools except highly specialized subjects.

b. Artisan positions except with specialized skills. (This list is subject to further consideration by the various sectors).

c. Legal profession (with no exceptions).

Specific Requirements for Application for ‘Business Permit’ and ‘Expatriate Quota’ in Nigeria:

Business Permit

  1. Application letter in Company’s letter head.
  2. Certificate of Incorporation or registration of business name duly issued by Corporate Affairs Commission.
  3. Memorandum and Articles of Association.
  4. Feasibility Report/Business Plan or company profile (where applicable).
  5. Corporate Affairs Commission’s Form CAC 2.3 & 2.5 or CAC C02 & C07 or CAC 1.1 or e-status report (as applicable).
  6. Joint Venture Agreement for partnership between Nigerian(s) and foreigner(s);
  7. Company’s Current Tax Clearance Certificate or individual income tax certificates for Partnership Businesses/ firms (as applicable).
  8. License / Permit/ Certificate from relevant Government Agencies/Department/Ministries to operate business legally in Nigeria for companies engaged in oil exploration/services, health care services, fishing, mining, engineering services etc.
  9. Evidence of acquisition of permanent operating premises i.e. lease/tenancy agreement, C of O or R of O.
  10. Certificate of Capital Importation along with a covering letter from the bank or with scannable QR Code.
  11. Evidence of importation of equipment/machinery (with details of the value) such as Form M, Pro forma invoice, shipping documents and Clean Certificate of Inspection, Bill of Lading (where applicable).
  12. Evidence of work at hand, its duration and value attached to the contract(s) if the company is engaged in building, civil engineering, construction and other sectors.
  13. Evidence of capital importation or other source of funding.
  14. Data page of International Passport of Directors/National Identity Card (for Nigerians).
  15. Valid telephone number and e-mail addresses of authorized representatives.
  16. Bank reference letter and Bank statement showing tangible inflow that supports feasibility study.

Establishment Grant of Expatriate Quota

  1. Application letter in Company’s letter head.
  2. Certificate of Incorporation or registration of business name duly issued by Corporate Affairs Commission.
  3. Memorandum and Articles of Association.
  4. Feasibility Report/Business Plan or Company Profile where applicable.
  5. Corporate Affairs Commission’s Form CAC 2.3 & 2.5 or CAC C02 & C07 or CAC 1.1 or e-status report as applicable.
  6. Joint Venture Agreement for partnership business/firms between Nigerian(s) and Foreigner(s) (where applicable).
  7. Company’s Current Tax Clearance Certificate or individual income tax certificates for Partnership Businesses/firms.
  8. Evidence of acquisition of permanent operating premises i.e. lease/tenancy agreement, C of O or R of O.
  9. Detailed training programme for Nigerians with proposed salaries.
  10. Certificate of Capital Importation along with a covering letter from the bank or with scannable QR Code.
  11. Evidence of importation of equipment/machinery (with details of the value) such as Form M, Proforma invoice, shipping documents and Clean Certificate of Inspection, Bill of Lading (where applicable).
  12. License/Permit/Certificate from relevant Government Agencies /department/Ministries to operate business legally in Nigeria for companies engaged in oil exploration/services, health care services, fishing, mining, engineering services etc.
  13. Evidence of work at hand, its duration and value attached to the contract(s) if the company is engaged in building, civil engineering, construction and other sectors.
  14. Evidence of capital importation or other source of funding.
  15. Job description of the proposed expatriates quota position to be recruited indicating designation, qualifications and proposed salaries.

There are also specific requirements relating to: renewal of expatriate quota, additional expatriate quota application, re-designation of quota, upgrade/revalidation to Permanent Until Reviewed (PUR) expatriate quota status, amendment of business permit, business permit/grant of establishment/ expatriate quota to Non-Governmental Organisations (NGOs),companies limited by guarantee, incorporated trustees/religious bodies, and renewal of expatriate quota position for Non – Governmental Organizations (NGOs) and religious bodies.

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