To promote the resilience, solvency, and capacity of banks while continuing to augment the growth of the Nigerian economy among the prevailing macroeconomic challenges in Nigeria, the Central Bank of Nigeria (CBN), on 28 March 2024 reviewed the minimum capital requirement for commercial, merchant, and non-interest banks. This article will consider in detail, the requirements and additional guidelines related to this directive. WHAT IS THE CURRENT CAPITAL REQUIREMENT FOR BANKS The new minimum capital requirements for commercial, merchant, and non-interest banks are as follows; TYPE OF BANK AUTHORISATION MINIMUM CAPITAL (N Billion) Commercial International 500   National 200   Regional...

To benefit from the various incentives that Nigeria offers to foreign businesses, they must first be registered with the Nigeria Investment Promotion Commission (NIPC). This commission is a Federal Agency that oversees, coordinates, and monitors all investments in Nigeria. This article aims to clearly understand the process and NIPC registration requirements that foreign investors need to follow to register with the NIPC. WHAT DOES NIPC DO IN NIGERIA? According to the NIPC Act, the NIPC does the following; (a) Co-ordinates and monitors all investment promotion activities to which the  Act applies; (b) Initiates and support measures which shall enhance the...

If you’ve ever wondered what are the tax incentives for foreigners starting a business in Nigeria, this article provides all the answers that we hope will enable you to decide whether or not Nigeria is a good place to start your business as a foreigner. There are many factors a foreign investor should put into consideration before investing into a country and one of those factors is the tax policies of the government of the country the foreigner wants to invest in. WHAT ARE TAX INCENTIVES? Tax incentives are policies that provide more favorable tax treatment to specific industries or...

The temporary suspension of the expatriate employment levy has been announced. In our previous article, we promised to provide updates on developments that may arise from the Expatriate Employment Levy (EEL) policy. For context, the Expatriate Employment Levy was launched on the 27th day of February 2024 by the Federal Government to strike a balance between the increased rate of expatriate employment within the country and its effect on the local labour market. According to this policy, all employers of expatriates must pay an annual levy of $15,000 (fifteen thousand US dollars) in cases where the expatriate is a Director...

Starting a new business in Nigeria as a foreigner can be a daunting task, especially if you don’t reside there. However, this doesn’t imply that it’s an insurmountable process. To assist you in your journey, we have compiled a basic legal checklist that we believe will ensure a hassle-free launch of your business in Nigeria. LEGAL CONSIDERATIONS FOR STARTING YOUR BUSINESS IN NIGERIA AS A FOREIGNER 1. The ideal entity type and requirements. There are many types of business entities available for those who want to start a business in Nigeria. However, some of these entities may not be suitable...

On Tuesday, February 27th, 2024, the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria launched the Expatriate Employment Levy (EEL). This levy was introduced to balance the benefits of expatriate employment with Nigeria’s local labour market and resources due to the increase in the imported workforce within the country. The EEL will be implemented from Friday, 15th March 2024, while the last date of compliance is Monday, 15th April 2024. This article will examine the new policy’s requirements and operations, as well as their overall impact on stakeholders. WHAT IS THE EXPATRIATE EMPLOYMENT LEVY (EEL)...

If you are interested in finding out how a school is registered in Nigeria, it is essential to be aware of the recent policies and guidelines created by the government and respective agencies. In this article, we will discuss these new policies and other key considerations for registering a school in Nigeria. HOW ARE SCHOOLS REGISTERED IN NIGERIA? To register a school in Nigeria, you need to follow certain procedures. The first step is to register with the Corporate Affairs Commission. According to the new policy, all schools must be registered as a company. Additionally, at least one member (director)...

If you need to notarize a document for official purposes in Nigeria but don’t know how to do it, this article is for you. Not all official documents require notarization, but many can only be recognized internationally if they are notarized. Examples of documents that can be notarized include academic records, birth certificates or attestations of birth, sponsorship letters, bank statements, police clearances, and more. If you find yourself in such a situation, we believe this article will guide you through the process. WHERE CAN I NOTARIZE MY DOCUMENTS IN NIGERIA? In Nigeria, only a Notary Public who is appointed...

The Corporate Transparency Act of 2021 in the United States mandates that both local and foreign entities must disclose their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the US Department of the Treasury. This compliance requirement forms a part of the U.S. government’s efforts to make it more challenging for dishonest individuals to conceal or profit from their illegally obtained funds through shell companies or other unclear ownership structures. This article will address frequently asked questions about Beneficial Ownership Information reporting as a compliance requirement for US companies WHAT IS BENEFICIAL OWNERSHIP...

The Central Bank of Nigeria (CBN) released revised guidelines for International Money Transfer Services in Nigeria on January 31, 2024. The guidelines are aimed at liberalizing the foreign exchange market, ensuring transparency in foreign exchange transactions, boosting diaspora remittances and foreign capital inflows, promoting efficient price discovery mechanisms, and improving the ease of doing business for International Money Transfer Operators. This article aims to examine the key changes that have been made to the pre-existing guidelines and their implications for stakeholders in the sector. KEY HIGHLIGHTS OF THE REVISED GUIDELINES 1. Minimum Share Capital Requirement: The Central Bank of Nigeria...