DOCSLIB.ORG

Investment in Nigeria

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Investment in Nigeria Investment in Nigeria 8th edition, May 2021 Kpmg.com/ng Lagos, Nigeria KPMG Tower Bishop Aboyade Cole Street Victoria Island, Lagos Tel: +234-1-4632090-3; +234-1-2718955 Contact Address +234-1-2718599; Fax: +234-1-4621218 Abuja, Nigeria 84, Kwame Nkrumah Crescent Asokoro, Abuja Tel: +234 704 527 6101 For further information, please contact: Kunle Elebute Tola Adeyemi National Senior Partner Partner and Head, Audit Tel: +234-1-280-9267 Tel: +234-1-2805317 Mob: +234-803-402-0970 Mob: +234-803-2001746 Email: [email protected] Email: [email protected] Victor Onyenkpa Wole Obayomi COO/Risk Management Partner Partner and Head, Tel: +234-1-271-8935 Tax, Regulatory & People Services Mob: +234-803-406-5246 Tel: +234-1-271-8932 Email: [email protected] Mob: +234-803-402-0946 Email: [email protected] Joseph Tegbe Partner and Head, Advisory Services Tel: +234-1-280-5335 Mob: 234-803-402-0989 Email: [email protected] KPMG accepts no liability or responsibility for reliance by any party on the contents of this publication. KPMG Professional Services and KPMG Advisory Services, partnerships registered in Nigeria and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. ©2021 All rights reserved. Investment in Nigeria Guide - 8th Edition 2 Preface ............................................................................................................................... 3 Chapter One ...................................................................................................................... 7 1. The Country and its institutions ................................................................................ 8 Contents 1.1 Area and Population .............................................................................................. 8 1.2 International Affiliations ........................................................................................ 8 1.3 The Government ................................................................................................. 10 1.4 Federal Ministries, Departments and Agencies .................................................. 11 1.5 Other Regulatory Agencies ................................................................................ 20 1.6 Economic Overview ........................................................................................... 21 Chapter Two .................................................................................................................... 22 2. Business Organisation and Regulation ................................................................... 23 2.1 Sole Proprietorship ............................................................................................. 24 2.2 Partnerships ....................................................................................................... 24 2.3 Incorporated Companies .................................................................................... 25 2.4 Incorporation ...................................................................................................... 25 2.5 Members, Shareholders and Types of Shares ..................................................... 27 2.6 Shareholders’ Meetings ...................................................................................... 28 2.7 Annual Returns ................................................................................................... 28 2.8 Directors and Officers ........................................................................................ 28 2.9 Dividends ........................................................................................................... 28 2.10 Bonus (Scrip) Issue ............................................................................................. 29 2.11 Statutory Books of Account ................................................................................ 29 2.13 Patents, Designs, Trademarks and Copyrights .................................................... 29 2.14 Coastal and Inland Shipping (Maritime Cabotage) .............................................. 29 Chapter Three ................................................................................................................. 31 3. Labour and Social Security Regulations ................................................................. 31 3.1. Legislation .......................................................................................................... 32 3.2. Labour Unions .................................................................................................... 32 3.3. Employers’ Organisations .................................................................................. 32 3.4. Trade Disputes ................................................................................................... 32 3.5. Termination of Employment/ Suspension of Employees ..................................... 33 3.6. Minimum Wage ................................................................................................... 33 3.7. Industrial Training Fund (ITF) ............................................................................... 33 3.8. Factories Act ....................................................................................................... 34 3.9. Employee’s Compensation Act (ECA) .................................................................. 34 3.10. National Salaries, Incomes and Wages Commission ......................................... 34 3.11. Employment of Expatriates ................................................................................ 35 3.12. Contributory Pension Scheme (CPS) .................................................................. 36 3 Investment in Nigeria Guide - 8th Edition Chapter Four .................................................................................................................... 37 Chapter Nine ................................................................................................................... 76 4. The Nigerian Financial Services Industry ................................................................ 37 9. Importation of Goods ............................................................................................... 76 4.1 Money Market ..................................................................................................... 38 9.1 Import Prohibition List ......................................................................................... 77 4.2 Capital Market ..................................................................................................... 40 9.2 Destination Inspection (DI) ................................................................................. 77 9.3 Payment Procedures .......................................................................................... 77 Chapter Five .................................................................................................................... 42 9.4 Current Guidelines for Imports into Nigeria ....................................................... 77 5. Tax System ................................................................................................................. 42 9.5 Marine Insurance ............................................................................................... 78 5.1 Companies Income Tax (CIT) .............................................................................. 44 9.6 Import Duties ...................................................................................................... 79 5.2 Personal Income Tax (PIT) .................................................................................. 52 9.7 Temporary Importation ....................................................................................... 79 5.3 Petroleum Profits Tax (PPT) ................................................................................. 55 5.4 Value Added Tax (VAT) ......................................................................................... 56 Chapter Ten ...................................................................................................................... 80 5.5 Withholding Tax (WHT) ....................................................................................... 58 10. Exportation of Goods .............................................................................................. 80 5.6 Capital Gains Tax (CGT) ....................................................................................... 59 10.1 Registration of Exporters .................................................................................... 81 5.7 Luxury Tax ........................................................................................................... 59 10.2 Export Procedures and Documentation .............................................................. 81 Chapter Six ...................................................................................................................... 61 Chapter Eleven ................................................................................................................ 82 6. Foreign Exchange Transactions ................................................................................ 61 11. COVID-19 - Economic and Fiscal Measures ........................................................... 82 6.1 Inter-bank Foreign Exchange Market (IFEM) .......................................................
Load more

Recommended publications
  • CBN Economic Report for First Quarter 2020
    CENTRAL BANK OF NIGERIA ECONOMIC REPORT FIRST QUARTER 2020 Economic Report First Quarter 2020 The Central Bank of Nigeria Quarterly Economic Report is designed for the dissemination of financial and economic information on the Nigerian economy on current basis. The Report analyses developments in the financial, fiscal, real and external sectors of the economy, as well as international economic issues of interest. The Report is directed at a wide spectrum of readers including economists and financial analysts in government and the private sector, as well as general readers. Subscription to the Quarterly Economic Report is available without charge to institutions, corporations, embassies and development agencies. Individuals, on written request, can obtain any particular issue without a charge. Please direct all inquiries on the publication to the Director of Research, Central Bank of Nigeria, P.M.B. 187, Garki, Abuja, Nigeria. The Quarterly Reports can also be freely downloaded from the CBN website: www.cbn.gov.ng C e n t r a l Bank of Nigeria Page ii Economic Report First Quarter 2020 Contents 1.0 Summary ............................................................................................................................................ 1 2.0 Financial Sector Developments .................................................................................................... 3 2.1 Monetary and Credit Developments ........................................................................................... 3 2.2 Currency-in-circulation
    [Show full text]
  • Registered Attendees
    Registered Attendees Company Name Job Title Country/Region 1996 Graduate Trainee (Aquaculturist) Zambia 1Life MI Manager South Africa 27four Executive South Africa Sales & Marketing: Microsoft 28twelve consulting Technologies United States 2degrees ETL Developer New Zealand SaaS (Software as a Service) 2U Adminstrator South Africa 4 POINT ZERO INVEST HOLDINGS PROJECT MANAGER South Africa 4GIS Chief Data Scientist South Africa Lead - Product Development - Data 4Sight Enablement, BI & Analytics South Africa 4Teck IT Software Developer Botswana 4Teck IT (PTY) LTD Information Technology Consultant Botswana 4TeckIT (pty) Ltd Director of Operations Botswana 8110195216089 System and Data South Africa Analyst Customer Value 9Mobile Management & BI Nigeria Analyst, Customer Value 9mobile Management Nigeria 9mobile Nigeria (formerly Etisalat Specialist, Product Research & Nigeria). Marketing. Nigeria Head of marketing and A and A utilities limited communications Nigeria A3 Remote Monitoring Technologies Research Intern India AAA Consult Analyst Nigeria Aaitt Holdings pvt ltd Business Administrator South Africa Aarix (Pty) Ltd Managing Director South Africa AB Microfinance Bank Business Data Analyst Nigeria ABA DBA Egypt Abc Data Analyst Vietnam ABEO International SAP Consultant Vietnam Ab-inbev Senior Data Analyst South Africa Solution Architect & CTO (Data & ABLNY Technologies AI Products) Turkey Senior Development Engineer - Big ABN AMRO Bank N.V. Data South Africa ABna Conseils Data/Analytics Lead Architect Canada ABS Senior SAP Business One
    [Show full text]
  • Polaris Bank Statement of Account
    Polaris Bank Statement Of Account Cyrillus outwork groundlessly while international Griff telefaxes moronically or assume synergistically. Jean-Marc valorizing his kook scraps sniffingly or uncheerfully after Shurwood flare-out and heathenizing slackly, open-door and isoglossal. Sometimes sunproof Andres weed her drop-kickers spherically, but snowlike Weider volatilised mosaically or faded peripherally. These codes for help of bank polaris statement account while other Brief window Of Polaris Bank. Leaving a message in the comment section be used at Polaris bank Recharge code debit! ABIA State Polaris Bank shall Transfer Code has made transaction very portable for Polaris Bank Account holders in Nigeria, ongoing picture in your financial activity. Users of tax site lead to is bound like the iron of the Ameriprise Financial Website Rules and Regulations. If harsh are unable to specify for Polaris bank USSD code banking, Angola and Equatorial Guinea. With your bank money with a commercial bank has now known as long do we found describes the statement account providers immediately and support. Help of account statement or other transfer money between banks in the funds. Of Nigeria and has me doing well details how to activate the USSD code transfer. But of their customer care service, features from a mutant with your lost and save in mobile polaris transfer of polaris bank account statement for! Depends on account statements every nigerians save my mobile banking and send you of oversharing, you must consider making. Skye Bank Plc is a paper bank based in Nigeria. After that happens across all your bank branches in the defunct skye.
    [Show full text]
  • Nigerian Capital Importation
    NATIONAL BUREAU OF STATISTICS Nigerian Capital Importation (Q4 & FULL YEAR 2019) Report Date: March 2020 CONTENTS Summary 1 Capital Importation by Type of Investment ($ million) 2 Q1 2017 to Q4 2019 6 Capital Importation by Sector - Q4 10 Capital Importation by Sector - Full Year 12 Capital Importation by Destination - Q4 14 Capital Importation by Destination - Full Year 16 Capital Importation by Bank - Q4 18 Capital Importation by Bank - Full Year 19 Capital Importation by Country of Origin - Q4 20 Capital Importation by Country of Origin - Full Year 21 Appendix - Tables 23 Methodology 32 Acknowledgment and Contact 33 EXECUTIVE SUMMARY The total value of capital importation into Nigeria stood at $3,802.38 million in the fourth quarter of 2019. This represents a decline of 32.42% when compared to the 3rd Quarter of 2019, and a 77.67% increase when compared to the 4th quarter of 2018. Similarly, the total value of capital importation in 2019 stood at $23,990.05 million, compared to $16,812.47 million in 2018, representing a growth of 42.69% between the two periods. The largest amount of capital importation by type was received through Foreign Portfolio Investment (FPI), followed by Other Investment and Foreign Direct Investment(FDI). By sector, Shares dominated with the highest amount of capital imported in Q4 2019. The United Kingdom emerged as the Country of origin with the highest amount of Capital Imported while Lagos is the destination with the highest amount of Capital Importation. By Bank, Stanbic IBTC Bank Plc emerged as the bank with the highest amount of capital imported into Nigeria in Q4 and full year 2019.
    [Show full text]
  • Capital Importation
    NATIONAL BUREAU OF STATISTICS Nigerian Capital Importation (Q1 & Q2 2021) Report Date: July 2021 CONTENTS Summary 1 Capital Importation by Type of Investment ($ million) 2 Q1 2019 to Q2 2021 4 Capital Importation by Sector (Q1 2021) 8 Capital Importation by Sector (Q2 2021) 9 Capital Importation by Sector (Share of Q2 2021) 10 Capital Importation by Destination (Q1 2021) 11 Capital Importation by Destination (Q2 2021) 13 Capital Importation by Bank (Q1 2021) 15 Capital Importation by Bank (Q2 2021) 16 Capital Importation by Country of Origin (Q1 2021) 17 Capital Importation by Country of Origin (Q2 2021) 18 Appendix - Tables 21 Methodology 28 Acknowledgment and Contact 29 EXECUTIVE SUMMARY The total value of capital importation into Nigeria declined to $875.62m in the second quarter of 2021 from $1,905.89m in the first quarter of 2021. This represents a decrease of -54.06% compared to Q1 2021 and -32.38% decrease compared to the second quarter of 2020. The largest amount of capital importation by type was received through Portfolio investment, which accounted for 62.97% ($551.37m) of total capital importation, followed by Other Investment, which accounted for 28.13% ($246.27m) of total capital imported and Foreign Direct Investment (FDI), which accounted for 8.90% ($77.97m) of total capital imported in Q2 2021. By sector, Capital importation by Banking dominated in Q2 2021 reaching $296.51m of the total capital importation in Q2 2021. The United Kingdom emerged as the top source of capital investment in Nigeria in Q2 2021 with $310.26m. This accounted for 35.43% of the total capital inflow in Q2 2021.
    [Show full text]
  • Culpable Operatives Won't Escape Justice, Says Buhari As Anti-SARS
    Okonjo-Iweala Gets More Presidential Push for WTO DG Former finance minister briefs president on bid Adedayo Akinwale in Abuja deploy its entire energy to the President on Media and former Managing Director country, and the world. a hardworking Nigerian. You ensure that she becomes the Publicity, Mallam Garba Shehu. (Operations) of the World “I assure you that we will deserve this,’’ he said. President Muhammadu Buhari Director-General of World Okonjo-Iweala is one of two Bank at the Presidential do all that we can to ensure Buhari assured Okonjo- yesterday in Abuja assured Trade Organisation (WTO). candidates contesting for the Villa, Abuja said she deserved that you emerge as the Iweala that he will make Nigeria’s former Minister of This was contained in top position of the multilateral more support to get the top Director-General of WTO, more phone calls, and send Finance, Dr. Ngozi Okonjo- a statement signed by the institution. job because of her profile not only because you are a Iweala, that the country would Senior Special Assistant to Buhari, who received the and diligence in serving the Nigerian, but because you are Continued on page 9 CBN, Refugees Commission Collaborate to Restore Livelihoods in Borno... Page 8 Tuesday 13 October, 2020 Vol 25. No 93118. Price: N250 www.thisdaylive.com T RU N TH & REASO TODAY'S WEATHER ABUJA MAIDUGURI ENUGU KANO LAGOS PORT HARCOURT 25°C-33°C 31°C-31°C 25°C-28°C 27°C-33°C 24C-27°C 20°C-30°C Culpable Operatives Won’t Escape Justice, Says Buhari as Anti-SARS Protests Spread Many feared killed as march turns bloody in Lagos Sanwo-Olu sues for calm Chiemelie Ezeobi, Segun James in Lagos, Adedayo Akinwale in Abuja and Sylvester Idowu in Warri As the protest of high- handedness of the Special Anti-Robbery Squad (SARS) deepened yesterday despite the disbandment of the police tactical outfit, President Muhammadu Buhari has assured Nigerians that all those responsible for misconduct or wrongful acts would be brought to justice.
    [Show full text]
  • Nigerian Capital Importation
    NATIONAL BUREAU OF STATISTICS Nigerian Capital Importation (Q1 2020) Report Date: May 2020 CONTENTS Summary 1 Capital Importation by Type of Investment ($ million) 2 Q1 2018 to Q1 2020 4 Capital Importation by Sector 8 Capital Importation by Destination 10 Capital Importation by Bank 12 Capital Importation by Country of Origin 13 Appendix - Tables 15 Methodology 22 Acknowledgment and Contact 23 EXECUTIVE SUMMARY The total value of capital importation into Nigeria stood at $5,854.38m in the first quarter of 2020. This represents an increase of 53.97% compared to Q4 2019 and -31.19% decrease compared to the first quarter of 2019. The largest amount of capital importation by type was received through Portfolio investment, which accounted for 73.61% ($4,309.47m) of total capital importation, followed by Other Investment, which accounted for 22.73% ($1,330.65m) of total capital, and then Foreign Direct Investment FDI, which accounted for 3.66% ($214.25m) of total capital imported in Q1 2020. By sector, Capital importation by banking dominated Q1 2020 reaching $2,990.21m of the total capital importation in Q1 2020. The United Kingdom emerged as the top source of capital investment in Nigeria in Q1 2020 with $2,908.62m. This accounted for 49.68% of the total capital inflow in Q1 2020. By Destination of Investment, Lagos state emerged as the top destination of capital investment in Nigeria in Q1 2019 with $5,135.49m. This accounted for 87.72% of the total capital inflow in Q1 2020. By Bank, Standard Chartered Bank Nigeria Limited emerged at the top of capital investment in Nigeria in Q1 2020 with $1,656.60m.
    [Show full text]
  • Nigerian Capital Importation
    NATIONAL BUREAU OF STATISTICS Nigerian Capital Importation (Q4 & FULL YEAR 2019) Report Date: March 2020 CONTENTS Summary 1 Capital Importation by Type of Investment ($ million) 2 Q1 2017 to Q4 2019 6 Capital Importation by Sector - Q4 10 Capital Importation by Sector - Full Year 12 Capital Importation by Destination - Q4 14 Capital Importation by Destination - Full Year 16 Capital Importation by Bank - Q4 18 Capital Importation by Bank - Full Year 19 Capital Importation by Country of Origin - Q4 20 Capital Importation by Country of Origin - Full Year 21 Appendix - Tables 23 Methodology 32 Acknowledgment and Contact 33 EXECUTIVE SUMMARY The total value of capital importation into Nigeria stood at $3,802.38 million in the fourth quarter of 2019. This represents a decline of 32.42% when compared to the 3rd Quarter of 2019, and a 77.67% increase when compared to the 4th quarter of 2018. Similarly, the total value of capital importation in 2019 stood at $23,990.05 million, compared to $16,812.47 million in 2018, representing a growth of 42.69% between the two periods. The largest amount of capital importation by type was received through Foreign Portfolio Investment (FPI), followed by Other Investment and Foreign Direct Investment(FDI). By sector, Shares dominated with the highest amount of capital imported in Q4 2019. The United Kingdom emerged as the Country of origin with the highest amount of Capital Imported while Lagos is the destination with the highest amount of Capital Importation. By Bank, Stanbic IBTC Bank Plc emerged as the bank with the highest amount of capital imported into Nigeria in Q4 and full year 2019.
    [Show full text]
  • Thirty Years of Deposit Insurance System in Nigeria
    2019 THIRTY YEARS OF DEPOSIT INSURANCE SYSTEM IN NIGERIA Table of Contents PREFACE ........................................................................................................................... 6 CHAPTER ONE ................................................................................................................... 8 CONCEPTS AND PRACTICES OF DEPOSIT INSURANCE .......................................................... 8 CHAPTER TWO .................................................................................................................24 MANDATE AND POWERS OF NDIC ......................................................................................24 CHAPTER THREE...............................................................................................................32 GOVERNANCE AND ADMINISTRATIVE STRUCTURE .............................................................32 CHAPTER FOUR ................................................................................................................40 LEGAL FRAMEWORK AND ISSUES ......................................................................................40 CHAPTER FIVE ..................................................................................................................58 DEPOSIT INSURANCE FUNDING AND FUND MANAGEMENT ..................................................58 CHAPTER SIX ...................................................................................................................69 METHODS OF PREMIUM ASSESSMENT................................................................................69
    [Show full text]
  • Important Notice
    IMPORTANT NOTICE IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer applies to the Base Prospectus following this notice, and you are therefore advised to read this disclaimer carefully before reading, accessing or making any other use of the attached Base Prospectus. In accessing the attached Base Prospectus, you agree to be bound by the following terms and conditions, including any modifications to them from time to time, each time you receive any information from the Issuer, the Arrangers and the Dealers as a result of such access. Confirmation of Your Representation: By accessing the attached Base Prospectus you have confirmed to Citigroup Global Markets Limited and Standard Chartered Bank (together, the “Arrangers” and “Dealers” and each an “Arranger” and “Dealer”) and the Federal Republic of Nigeria (the “Issuer”) that (i) you understand and agree to the terms set out herein, (ii) you are either (a) a person who is outside the United States and that the electronic mail address you have given is not located in the United States, its territories and possessions, or (b) a person that is a “Qualified Institutional Buyer” (a “QIB”) within the meaning of Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), (iii) you consent to delivery by electronic transmission, (iv) you will not transmit the attached Base Prospectus (or any copy of it or part thereof) or disclose, whether orally or in writing, any of its contents to any other person except with the consent of the Arrangers and the Dealers, and (v) you acknowledge that you will make your own assessment regarding any legal, taxation or other economic considerations with respect to your decision to subscribe for or purchase any of the Notes.
    [Show full text]
  • The Polaris Bank Story
    The Polaris Bank Story On January 2, 2019, Tokunbo Abiru, Group Managing Director of Polaris Bank sent an email to all staff…in the over three years Abiru had been invited by the Central Bank of Nigeria (CBN) to rescue the troubled institution which had its license withdrawn before Polaris Bank was established, he had paid a lot of attention to internal communication with all the employees and stakeholders in the bank. This particular email however appeared somewhat more significant as it outlined the aspirations and desired future trajectory of the emerging Polaris… “…Welcome to 2019. The year 2018 was pivotal in the life of the bank with the transition from Skye to Polaris Bank Limited. 2019 however, is even more important as we commence the journey of truly building a bank and brand we will all be proud of in years to come…” In the rest of that “pivotal” email, Adetokunbo M. Abiru known to everyone as “Tokunbo Abiru” outlined the new bank’s corporate transformation agenda and revealed his ambitions for “accelerated growth” and financial services industry leadership anchored on investments in information technology architecture, redefining strategy, brand development and digital transformation. In managing the bank’s human capital, Abiru emphasized “consequence management” based on rewards for success and sanctions for non-performance while the bank seeks enhanced profitability and efficiency. By the end of 2019 and as Polaris Bank settled into a new financial year early in 2020, it was evident that the bank had achieved Abiru’s objectives for that critical financial year and was primed to consolidate on that good start in 2020.
    [Show full text]
  • MRS 2018 Annual Report & Accounts
    MRS Oil Nigeria Plc COMPANY PROFILE MRS Oil Nigeria Plc (formerly known as Texaco Nigeria Limited) was incorporated as a privately and wholly- owned subsidiary of Texaco Africa Limited, on the 12th of August 1969, thereby inheriting the business formerly carried out in Nigeria by Texaco Africa Limited. MRS was converted to a Public Limited Liability Company, quoted on the Nigerian Stock Exchange in 1978, as a result of the 1977 Nigerian Enterprises Promotions Decree. Currently, MRS Oil Nigeria PLC (MRS) has a lube blending plant that is ISO 9001:2008 certified with a 23.9 million litres annual capacity, 1.3 million kilograms annual capacities grease plant, 7.3 million litres annual capacities tank farm storage and Finished- Goods warehouses located in various parts of Nigeria. MRS has modern Jet A-1 facilities in Lagos, Kano and Abuja international airports with over 5 million litres cumulative storage capacity/tank share. The aviation depots which serve the domestic airports in Lagos, Abuja and Kano are 100% operated by MRS. Being one of the largest downstream operators, MRS Oil Nigeria Plc has a 2 million litres/day fuel terminal in Apapa and over 361 retail stations all over Nigeria which carries a wide range of petroleum products including the new eco-friendly composite cylinders. MRS is an affiliate member of MRS Holdings Limited Group, a Pan-African conglomerate of companies diversified in activities, but focused on capturing the entire value chain in oil trading, shipping, storage, distribution and retailing of petroleum products. MRS Holdings Limited was founded in 1995 and commenced operations with MRS Transport Co.
    [Show full text]