REVISED GUIDELINE(S) ON EXPATRIATE QUOTA - BUSINESS PERMIT AND QUOTA IN NIGERIA

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; 

1. Issuance of Business Permit and expatriate Quota positions
2. Monitoring the execution of the quota positions granted in order to ensure effective transfer of technology to Nigerians and eventual indigenization of the positions occupied by the Expatriates.

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.

GRANT OF BUSINESS PERMIT / EXPATRIATE QUOTA POSITION

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

1. BUSINESS PERMIT 
   For only Joint Venture and wholly Foreign owned Companies.
   1. Completed Immigration Form T/1
   2. Certificate of Incorporation
   3. Memorandum and Article of Association
   4. Feasibility Report (should be certified or registered with Corporate Affairs commission (CAC)
   5. Corporate Affairs Commission’s Form CAC 2.3 ^ 2.5 of CAC C02 & C07
   6. Joint Venture Agreement for partnership venture between Nigerian and foreigners (original to be presented for sighting)
   7. Company’s Current Tax Clearance Certificate (Original to be presented for sighting)
   8. 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.
2. GRANT OF EXPATRIATE QUOTA ONLY 
   Same documents as in (a) above plus:
   1. 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.
   2. 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)
   3. 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)
   4. 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).
3. RENEWAL OF EXPATRIATES QUOTA 
   
   1. Completed Immigration Form /T2
   2. Corporate Tax Clearance Certificate (original to be presented for sighting)
   3. Current Tax Clearance certificate of the expatriate (original to be presented for sighting)
   4. Expatriate Quota Returns for the three months preceding the date of approval.
   5. Detailed Training programme for Nigerians
   6. List of Nigerians understudying expatriate on prescribed formats showing date employed, qualification, etc.
   7. List of Nigerian Senior/Management Staffs showing names, designations, qualifications, salaries per annum
   8. Certificate Current Audited Accounts
   9. Annual income tax Clearance certificate of the Expatriate staff (original to be presented fro sighting);
4. ADDITIONAL EXPATRIATE QUOTA
   Same documents as for renewal of expatriate quota plus:
   1. Evidence of acquired machinery or expansion of company is engaged in manufacturing in the form of Clean Certificate of inspection (CCI) issued by Government appointed Pre shipment inspection Agents
   2. Evidence of new contract if Company is engaged in construction/engineering and oil (original to be presented for Sighting) see  b (ii) for guidance
   3. Evidence of acquired farm / factory if Company is engaged in agro-allied business (original to be presented for sighting).
5. RESTORATIONS OF QUOTA
   In applying for restoration, there must be reasons and proof for the reactivation and revitalizing the company i.e. previously depressed economy, increased demand for the Company’s product / services and acquisition of new machinery i.e. Clean Certificate of Inspection (CCI) issued by Government appointed Pre-shipment inspection 
   AGENTS.
6. REDESIGNATION OF QUOTA
   In case where a Company has difficulty in filling or owing to exigency of Operations, it is at liberty to apply for the re-designation of the affected position and this will be considered, purely on its own merit.
7. PERMANENT UNTIL REVIEWED QUOTA – (P.U.R)
   The main reason for the granting of P.U.R quota slot for which a Certificate would be issued, is to enable the foreign subscriber(s) adequately protect their interest and to give them a sense of greater commitment. The criteria and documents required for P.U.R are:
   
   1. Minimum share capital should be N10 Million
   2. Appreciable net profit of which not less than N2 million has been paid as Corporate Tax (original to be presented for sighting)
   3. Certified and Detailed Audited Account
   4. Certificate of Incorporation
   5. Monthly Returns of Expatriate Quota
   6. Company Organisation Structure
   7. Individual Income tax Clearance Certificate of the expatriates (original to be presented for sighting).
   NOTE: 
   Other factors that would also be considered when considering P.U.R request include: 
   
   1. political / policy direction of Government.
   2. company’s area of business to fall within priority sectors of the economy.
   3. Evidence that P/U.R would guarantee Technology transfer.
   4. Company should have large quota portfolio and Corresponding share holding as an added qualification.
8. QUOTA FOR INDIGENOUS COMPANY (FULLY-OWNED BY NIGERIANS
   Same documents as in (b) above except Joint Venture Agreement 
9. WHOLLY-OWNED FOREIGN COMPANY 
   
   1. Same documents as in (a) & (b) above except Joint venture Agreement
   2. Share Capital must not be less than N10 Million. 
10. AMENDMENT OF BUSINESS PERMIT
    
    
    1. Board Resolution on the changes in either the composition of the Board of directors, location of business or line of activities duly registered with Corporate Affairs Commission
    2. Extract of Minute of Board of Directors Meeting showing decision taken and attendance.
    3. Evidence of resignation / appointment of Directors (old & new) where applicable
    4. Company Current Tax Clearance Certificate (original to be presented for sighting);
       
       NOTE: 
       Board Resolution should indicate names of Directors present at the meeting and must be fully signed by the Chairman and Company Secretary.
11. FEES PAYABLE FOR SERVICES RENDERED
    From time to time, fees payable for services rendered are subject to review. The currently reviewed fees are as follows:
    

    S/N	DESCRIPTION	COST (N)
    1.	Processing fees	25,000
    2.	Grant of Establishment Quota(Per Slot)	10,000
    3.	Renewal of Quota Position (Per Slot)	5,000
    4.	Additional quota (Per Slot)	10,000
    5.	Stay of Action	5,000
    6.	Grant of Business permit	50,000
    7.	Amendment of Business permit	25000
    8.	Regarding of quota (per slot)	10,000
    9.	Appeal Processing fee	10,000
    10.	Restoration of Lapsed quota	55,000
    11.	upgrading of quota to P.V.R (Per Slot)	$10,000
    12.	Re-designation of  P.U.R slot (GM  to MD or MD to GM etc)	$10,000
    13.	Detagging / Extension of quota(Per Slot)	10,000
    14	Revalidation of Lapsed quota(Per Slot)	10,000
    15	Penalty for late submission of Renewal of private license	150,000

SOURCE: NIS website