CERTIFICATE OF CAPITAL IMPORTATION: EVERYTHING YOU NEED TO KNOW
May 11, 2023May 11, 2023
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By In Business Law

If you are a foreigner or a foreign entity looking to set up a business in Nigeria or you are a Nigerian who owns a business and is about to receive funds or equipment from foreigners as a form of investment into your business, you are very likely to be required to obtain a Certificate of Capital importation (CCI).

In this article, we will explain what this is all about. We hope you gain value from it.

What is a Certificate of Capital Importation?

Also referred to as CCI, it is a document that proves that cash, equipment, or both has been given by foreign investors to an entity registered and operating in Nigeria. It is issued by the Central Bank of Nigeria through authorized dealers (i.e. Commercial Banks).

What is it used for?

A certificate of capital importation is used for various purposes which serves as benefits. The popular reason behind the use of CCI is to enable owners to gain access to official foreign exchange rates for dividends, loans, or interest payments to foreign investors or lenders.

Other uses and benefits of a CCI are that it enables a foreigner or foreign entity;

i. to return capital, dividend, or income from Nigeria to their home country at official market rates

ii. set up a naira account with any bank in Nigeria as a non-resident

iii. create a domiciliary account with any commercial bank

iv. buy stocks or shares of Nigerian companies

Requirements for obtaining a Certificate of Capital Importation in Nigeria

A certificate of capital importation could be issued in various forms and for either of the following reasons;

a. For importation of cash as equity investment

b. Importation of cash as a loan

c. Importation of machinery and equipment as equity

d. Importation of machinery and equipment as a loan

We will consider the requirements for each of these categories.

CCI requirements for the importation of cash as equity investment
  • Letter from the customer requesting CCI
  • Board resolution authorizing the investment (from the Nigerian Company)
  • A copy of the Nigerian company’s certificate of incorporation
  • Verified SWIFT telex copy stating the amount and purpose of inflow
  • Name and address of foreign investor (to be provided by the Nigerian company).
  • Registration number and date of registration of investors (i.e registration as a company)
  • Nature of Business of Investor
  • The sector of Operation of the Beneficiary.
Requirements for the importation of cash as a loan
  • Letter from the customer requesting CCI
  • Board resolution authorizing the investment (from the Nigerian Company)
  • A copy of the Nigerian company’s certificate of incorporation
  • Verified SWIFT telex copy stating the amount and purpose of inflow
  • Name and address of foreign investor (to be provided by the Nigerian company).
  • Registration number and date of registration of investors (i.e registration as a company)
  • Nature of Business of Investor
  • The sector of Operation of the Beneficiary.
  • Offer letter by the Investor and acceptance by the beneficiary
  • Loan agreement stating the repayment schedule ( tenor and interest rate)
CCI Requirements for the importation of machinery and equipment as equity
  • Letter from the customer requesting CCI
  • Board resolution authorizing the investment (from the Nigerian Company)
  • A copy of the Nigerian company’s certificate of incorporation
  • Verified SWIFT telex copy stating the amount and purpose of inflow
  • Name and address of foreign investor (to be provided by the Nigerian company).
  • Registration number and date of registration of investors
  • Nature of Business of Investor
  • The sector of Operation of the Beneficiary
  • Risk assessment report/combine certificate of origin and value for destination inspection
  • Certified copy of bill of lading (original to be sighted).
  • Original Combined Certificate of Value and Origin (CCVO) and Pre-Arrival Assessment Report (PAAR)
  • Certified copy of bill of entry/single goods declaration form (original to be sighted)
  • Original import duty payment receipt bearing single goods declaration (SGD) form number
  • Copy of Form M (non-valid)
  • Goods exit note.
Requirements for CCI for the importation of machinery and equipment as loan
  • Letter from the customer requesting CCI
  • Board resolution authorizing the investment (from the Nigerian Company)
  • A copy of the Nigerian company’s certificate of incorporation
  • Verified SWIFT telex copy stating the amount and purpose of inflow
  • Name and address of foreign investor (to be provided by the Nigerian company).
  • Registration number and date of registration of investors
  • Nature of Business of Investor
  • The sector of Operation of the Beneficiary
  • Risk assessment report/combine certificate of origin and value for destination inspection
  • Certified copy of bill of lading (original to be sighted).
  • Original Combined Certificate of Value and Origin (CCVO) and Pre-Arrival Assessment Report (PAAR)
  • Certified copy of bill of entry/single goods declaration form (original to be sighted)
  • Original import duty payment receipt bearing single goods declaration (SGD) form number
  • Copy of Form M (non-valid)
  • Goods exit note.
  • Offer letter by the Investor and acceptance by the beneficiary
  • Loan agreement stating the repayment schedule ( tenor and interest rate)
CONCLUSION

If you are a foreigner or a foreign-owned business looking to invest in Nigeria either through Foreign Direct Investment or through Foreign Portfolio Investment (i.e importing capital into Nigeria to purchase shares and stocks in a Nigerian company), you need to be certain that the returns on your investments can be returned to your country from which the capital came from under profitable conditions, and a Certificate of Capital Importation will help you achieve that.

Unfortunately, although the CCI has been in existence since 2017, not many stakeholders (particularly commercial banks and foreign investors) are aware of the CCI and its benefits. It is therefore important that you get up–to–date information on this subject before proceeding with the application as well as its implication on your ability to repatriate return on investments to your home country.

Need further guidance in this regard, reach out to us by clicking the Whatsapp icon on the lower right part of this page or reach out to us here, and we will attend to you.

 

Cynthia Tishion

Cynthia Tishion

Cynthia is a lawyer and currently serves as Head of Corporate / Commercial Services at LEX – PRAXIS. With her passion for business and entrepreneurship, she is actively engaged in creating awareness on the legal aspect of businesses through various platforms such as writing, public speaking engagements.

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