INTRODUCTION

 

Now and then I received calls from:

      i.         Persons outside Nigeria that want to invest in a company in Nigeria.

     ii.         Persons that want to establish a subsidiary of their oversea business in Nigeria.

   iii.         Persons (Entities) in Nigeria that want to receive funds / Equipment from Investor(s) outside Nigeria as equity or loan investment.

The common question is always how to get this done seamlessly. Their quest is summarized by the following objectives:

 

OBJECTIVE

1.       To transfer fund to Nigeria as INVESTOR in an existing company or to start up own business in Nigeria.

2.       To ensure the fund movement process complies with extant Foreign Exchange regulations.

3.       To guide against any restrictions in profit and capital repatriation when there is eventual divestment.

4.       To have access to Nigeria foreign exchange market for repatriation of fund, when the need arises.

PROCEDURE TO ATTAIN OBJECTIVES

1.      For Persons intending to transfer fund  purpose of starting a business in Nigeria, the  first action will be to have the company registered with the Nigeria Corporate Affairs Commission (CAC), in accordance with the provisions of the Companies and Allied Matters Act 1990 (as amended).  To move fund without the Company registered will amount to placing the cart before the horse.

2.       Registered Company then open account(s) with an Authorized Dealer Bank (ADB) in Nigeria. This is a bank that can deal in foreign exchange and its attendant issues.

3.       The Registered Company obtain bank transfer details (including SWIFT Code, Correspondent bank and account number) from the ADB where account is opened and forward to potential Investor.

4.       The Registered Company in Nigeria proceed to submit the following documents to the bank, where account is opened.

ü  Board Resolution authorizing the investment.

ü  Copy of the Certificate of incorporation with Corporate Affairs Commission (CAC)

ü  Letter requesting for electronic Certificate of Capital Importation (CCI) to be issued, upon receipt of foreign fund inflow for investment purpose. Letter to include amount, transferor name, transferor address, transferor country, Investor email and legal entity identifier (LEI).

ü  Where fund investment is in form of Loan, offer letter and loan agreement is to be included to above.

5.       Upon receipt of fund the ADB will convert fund to local currency (Naira) and credit Company NGN account and upload documents submitted by company on the Central Bank of Nigeria E-CCI Portal. An electronic certificate of Capital Importation (e-CCI) is automatically issued by the CBN System at the bank and copy availed to the company, as a Beneficiary of the Investment. The e-CCI issuance process is within 24 hours from time of receipt of fund from the Investor by the bank.

6.       The copy of the e-CCI is evidence of the investment and is the basis for subsequent access to the foreign exchange market and repatriation of capital at divestment.

Note that Investment can also be in form of Equipment. Investment can also be midwifed by a duly registered Stock Broker.