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The Expatriate Quota is an approval granted by the Federal Ministry of Interior on behalf of the Nigerian government. It allows indigenous or foreign-owned companies to employ foreign nationals as employees or directors, enabling them to legally work and reside in Nigeria.
The Ministry of Interior is responsible for:
Definition of business permit and expatriate quota
1. Business Permit: It 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 the Federal Republic of 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. [i]
2. Expatriate Quota: It is granted to wholly foreign, joint venture or indigenous companies/organizations 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. Eligible expatriates must hold relevant academic qualifications (e.g., a Bachelor’s Degree, Higher National Diploma, or specialized training certificate) and demonstrate expertise in their profession.
Requirements for obtaining a business permit in Nigeria
An application will be made to the Federal Ministry of Interior on the Company’s letterhead and it has to be accompanied by the following document:
i. Certificate of Incorporation or registration of company duly issued by Corporate Affairs Commission;
ii. Memorandum and Articles of Association;
iii. Feasibility Report/Business Plan or company profile (where applicable);
iv. Corporate Affairs Commission’s Form CAC 2.3 & 2.5 or CAC C02 & C07 or CAC 1.1 or e-status report (as applicable);
v. Joint Venture Agreement for partnership between Nigerian(s) and foreigner(s);
vi. Company’s Current Tax Clearance Certificate or individual income tax certificates for Partnership Businesses/firms (as applicable);
vii. License/Permit/Certificate from relevant Government Agencies /departments/Ministries to operate business legally in Nigeria for companies engaged in oil exploration/services, health care services, fishing, mining, engineering services, etc.;
viii. Evidence of acquisition of permanent operating premises i.e. lease/tenancy agreement, C of O or R of O;
ix. Certificate of Capital Importation along with a covering letter from the bank or with a scannable QR Code;
x. 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);
xi. 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;
xii. Evidence of capital importation or other source of funding;
xiii. Data page of International Passport of Directors/National Identity Card (for Nigerians);
xiv. Valid telephone number and e-mail addresses of authorized representatives;
xv. Bank reference letter and Bank statement showing tangible inflow that supports feasibility study.
NOTE: It is important to state that before the Ministry can grant a Business Permit, the issued or paid-up share capital must not be less than N100 million for each Company.
Requirements for Obtaining an Expatriate Quota in Nigeria
An application will be made to the Federal Ministry of Interior on the Company’s letterhead and it has to be accompanied by the following document:
i. Certificate of Incorporation duly issued by Corporate Affairs Commission;
ii. Memorandum and Articles of Association;
iii. Feasibility Report/Business Plan or Company Profile where applicable;
iv. Corporate Affairs Commission’s Form CAC 2.3 & 2.5 or CAC C02 & C07 or CAC 1.1 or e-status report as applicable;
v. Joint Venture Agreement for partnership business/firms between Nigerian(s) and Foreigner(s) (where applicable);
vi. Company’s Current Tax Clearance Certificate or individual income tax certificates for Partnership Businesses/firms;
vii. Evidence of acquisition of permanent operating premises i.e. lease/tenancy agreement, C of O or R of O;
viii. Detailed training program for Nigerians with proposed salaries;
ix. Certificate of Capital Importation along with a covering letter from the bank or with a scannable QR Code;
x. 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);
xi. License/Permit/Certificate from relevant Government Agencies /departments/Ministries to operate business legally in Nigeria for companies engaged in oil exploration/services, health care services, fishing, mining, engineering services, etc.;
xii. 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;
xiii. Evidence of capital importation or other source of funding; and
xiv. Job description of the proposed expatriates’ quota position to be recruited indicating designation, qualifications, and proposed salaries.
The total lifespan of an Expatriate Quota is seven (7) years—granted for an initial period of three (3) years, with the possibility of two (2) biennial renewals (each lasting two (2) years).
The oil and gas sector is an exception, as companies in this industry receive initial approval for two (2) years, which can be renewed only once for an additional two (2) years, making the total lifespan four (4) years instead of seven.[ii]
Conclusion
In conclusion, the Expatriate Quota is a step in the right direction as it will guide investors who are willing to invest in Nigeria. It will also help foreign directors or owners of businesses can obtain expatriate quotas easily. However, foreign-owned companies often process business permits together with expatriate quotas. Looking for regulatory and compliance services related to expatriate quota? Focus on your business whilst we handle that for you. Contact us via info@cms.trustedadvisorslaw.com.
[i] https://ecitibiz.interior.gov.ng/Content/HandbookOnExpatriateQuota/HANDBOOK.pdf accessed on 03/02/2025
[ii] https://ecitibiz.interior.gov.ng/expatriate/overview accessed on 04/02/2025
Written by Elizabeth Olalekan for The Trusted Advisors
Email us: info@cms.trustedadvisorslaw.com