Enacted the Business Facilitation Act 2022
14 Feb 2023
On 14 February 2023, Nigeria enacted the Business Facilitation (Miscellaneous Provisions) Act, 2022. This Act introduced several amendments to existing laws, including the Companies and Allied Matters Act (CAMA) and the Nigerian Investments Promotion Commission (NIPC) Act, among others.
Companies and Allied Matters Act, 2020:
The amendment to CAMA 2020 includes a revision of the list of foreign companies exempted from registration in Nigeria. Section 78(3) of CAMA 2020 was amended by inserting a new paragraph (c), which extends the parameters for exempting foreign companies intending to conduct business in Nigeria from the incorporation requirement. This now includes exemptions granted by an Act of the National Assembly. As a result, a foreign company intending to operate in Nigeria must comply with the incorporation provisions in CAMA unless it is exempted under (i) any preceding Companies Act applicable in Nigeria before the commencement of CAMA, (ii) a treaty to which Nigeria is a party, or (iii) any other Act of the National Assembly.
Nigerian Investments Promotion Commission (NIPC) Act:
Section 20 of the NIPC Act was amended by introducing a new subsection (3), which requires any company that acquires foreign equity after commencing business to register with the NIPC. Prior to this amendment, the NIPC Act required only new companies with foreign participation to register with the NIPC before commencing operations. The previous version of the NIPC Act did not address whether an existing company that later acquires foreign equity should register with the Commission. Following this amendment, any Nigerian company that subsequently acquires foreign participation is required to register with the NIPC within three months of such acquisition.
Incentives for Special Investments:
Section 22 of the NIPC Act was amended to delineate the responsibilities of the Commission in identifying, determining, and promoting strategic or major investments. The new Section 22 mandates the Commission to specify priority areas of investment and the applicable benefits and incentives. It also empowers the Commission to negotiate special incentive packages for strategic investments in addition to the general incentives applicable to any enterprise under the law. Furthermore, the Commission is required to publish the criteria for determining strategic investments and the details of special incentives awarded in the Federal Government Gazette and on its website.
-
Type:
-
Entry and establishment (Approval and admission)
-
Promotion and facilitation (Investment facilitation , Investment incentives)
-
Industry:
-
Sources:
