THE NEW NIGERIAN VISA POLICY: KEY FEATURES TO NOTE

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On February 4, 2020, the Federal Government of Nigeria introduced a new Visa Policy (“VP”) which aims at transforming the visa application and issuance process and providing better access to foreign investors, tourists and other persons visiting Nigeria for legitimate purposes.

The VP also seeks to promote the agenda of the Presidential Enabling Business Environment Council tasked with driving foreign investment into Nigeria and ultimately improving the Nigerian business environment.

Some major highlights of the VP are discussed below.

  1. Expansion of Visa Classes. The VP increases existing classes of visas from 6 to 79 and categorizes them into 3 namely:

(a) Short Visit Visas: This category of visas allows foreigners to visit Nigeria for a period 3 months for tourism, meetings and other business purposes. This category of visas applies to journalists, artistes, clerics and professionals requiring short visits to perform their specific tasks in Nigeria.

(b) Temporary Residence Visas: This category of visas applies to individuals who wish to reside in Nigeria for employment, studies, amongst others.

(c) Permanent Residence Visas: These classes of visas are for foreign investors who are willing to live, work and invest from $250,000 to $100 Million in Nigeria, depending on the class of visa, spouses and dependants of Nigerian citizens,  and individuals who possess skills that are not locally available in Nigeria. Note that this category of visas does not confer an automatic right to work in Nigeria.

  1. Application Channels and Procedure. The policy also provides for the channels through which foreigners and tourists can apply for Nigerian Visas namely:

(a) Visa on Arrival: The new policy mandates the Nigerian Immigration Service to issue visas on arrival to tourists and visitors from African Union countries and Nigerians holding passports of other countries as a result of naturalization, at the port of entry (excluding land borders) upon producing their international passports, evidence of hotel accommodations or letters of invitation and return tickets.

(b) Electronic Visa: This channel allows intending visitors and tourists to apply for visas online and obtain pre-approval permit if they meet the requirements, before entering Nigeria.  This channel is a welcome development for tourists and visitors who reside in countries where Nigeria does not have embassies and missions.

(c) Visas at Nigerian Embassies/Missions or Visa Application Centres: Under this channel, visa applications are processed at the Nigerian embassies or designated centres and issued here upon approval.

  1. Implementation. To aid the implementation of the VP, the Federal Government has also set up the International Civil Aviation Organization Public Key Directory (ICAO-PKD) Global Platform (a central repository for exchanging the information required to authenticate e-Passports) at all International Airports in Nigeria to facilitate the authentication of travel documents. This will enable a seamless and efficient clearance system at the International Airports in the country. Furthermore, this reduces the chances of criminals beating the system.

Conclusion.

The VP is a welcome development as it is expected to improve the Nigerian business environment and if properly implemented, it will attract foreign direct investment and boost tourism without compromising national security.

Foreign Investments in Nigeria: Managing the Risks

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In recent times, foreign investors, startups and larger technology companies have identified countries like Nigeria as providing good investment opportunities. Investors, however, hesitate to invest in the Nigerian market due to certain risk factors including uncertainty about the relevant regulations for their desired sectors, arbitrary government policies and difficulty in researching into the environment given the fragmented nature of laws and regulations.

The Nigerian government continues to emphasize its interest in attracting foreign investments into Nigeria evidenced by tax incentives, the Nigerian Investment Promotion Council One-Stop Shop, amongst other initiatives. However, acts such as the recent ban on the operations of commercial motorcycles and tricycles (including bike ride hailing startups such as Opay, Gokada and Max.ng) have amplified the fears of investors and probably reinforced their hesitation in coming into the Nigerian market.

The question that now arises is if Nigeria is too high-risk for foreign investments. Our response to this is NO because there are a lot of opportunities in Nigeria and the risks can be managed with the right advisers and partnerships.

We have set out below, certain steps that investors may take to manage the risks associated with investing in Nigeria.

 

How can investors better protect their interests?

1.Regulatory/Policy Due Diligence: It is important for any intending investor to conduct thorough due diligence on the applicable laws, policies, directives and regulations relevant to their sector of interest, including those that have not been enforced. Due to the fragmented nature of laws and regulations, the due diligence must go beyond online research and involve visits to regulators to seek clarity. Where possible, Letters of No Objection to the proposed business should be obtained.

2.Review the Government’s Masterplan and Seek Government Participation: To manage the risk of arbitrary government intervention, investors can study the government’s masterplan regarding the relevant industry and propose a  mutually beneficial partnership with the government. Such partnership may mean allocating some shares of the business to the government or partnering with government agencies to offer the services to the public. The inclusion of the government in the operations of the business makes them invested in its        success. This step was recently taken by Uber with the UberBOATS’ and Lagos State Waterways Authority collaboration. It is however important to note the risk of a change in government affecting the collaboration.

3.Building Practical Relationships with Government Agencies: It is always useful to build good relationships with government agencies whose activities will affect the business. A compliance personnel could be hired to liaise with the government and advise the business/investors as required.

4.Insurance Policy: Investors, especially foreigners seeking to do business in Nigeria, can consider protecting their investments against adverse government intervention through Political Risk Insurance.

 

Conclusion

Nigeria remains a good environment for investment. Our suggestions above are not exhaustive however, they should help investors manage the risk of government intervention. Like any other  investment decision, protections put in place against risks are never failproof but with high risk typically comes high returns.

Wills and Codicils: Key Elements to Consider

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Sometime last month, the world was shocked by the sudden demise of the 41-year-old basketball legend, Kobe Bryant. As the world continues to grieve, many have been awakened to the unexpected nature and inevitability of death. In the wake of death however, lies pressing matters such as succession and inheritance which can be swiftly dealt with by way of adopting the instructions of an existing will, if any.

Wills and Legal Regulations?

A Will is basically a testamentary message of the deceased to his family and friends about the disposition of his real and personal property with the backing of the law subject to minor limitations. In Nigeria, the national law on Wills remain the Wills Act of 1837 and the Wills Amendment Act of 1852. However, States have constantly enacted laws to regulate the creation of wills and the administration of the estates considering modern changes such as the Wills Law of Lagos State Cap W2 2004.
Oral Wills
The act of disposing property dates to old traditions of oral disposition of property on dying bed usually called Oral Will. However, the statutes and even customary law do not validate these dispositions unless they satisfy some conditions:
1. it must be voluntarily made;
2. the testator must have a sound mind;
3. the beneficiary must be named;
4. it must be in the presence of witness and
5. the property must be specifically mentioned

Key Elements to consider

To be protected under the legal regulations, a Will is required to comply with a few requirements.
The testator must have the capacity to make the Will. In Lagos, the testator must be at least 18 years old. This varies according to the state of residence of the testator. In some states, the age minimum is 21 years. However, the requirement of age does not affect soldiers in active military service, seamen and crew of a commercial airline.

The testator must be of sound mind at the time of giving the instruction for the drafting of the Will and at the time he is executing the Will. Furthermore, he must not be under undue influence or fraud.

Finally, the Will must be executed by the testator in the presence of two witnesses. Those two witnesses must also execute the Will in the testator’s presence.

Occasionally, a testator may want to include a few instructions for the family such as burial arrangement. This is usually included in a separate sheet attached to the Will because Wills are usually read after burial rites.

Conclusion
Constantly, the laws are being reformed to make succession a smoother process. Certainly, global standard is yet to be attained however, the mechanisms in place are sufficient for deciding the bequest of property and avoiding the rules of custom, appointing executors and guardians including trustees under the Trustee Investment Act.

Financial Services In Nigeria: Difference Between MMOs, PSBs, and MFBs

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Mobile Money Services (run by Mobile Money Operators [MMOs]), Microfinance Banks (MFBs), and Payment Service Banks (PSBs) are three different financial services under which some companies in the financial sector operate to provide the unbanked and underbanked access to beneficial financial tools. Separate licenses are acquired to provide these services.  However, due to the similarity in the financial services, the differences between them are sometimes unrecognisable. In the table below, we compare the functionalities, capabilities and restrictions of MMOs, MFBs and PSBs.

 

SERVICES  MMOs PSBs MFBs
Minimum Capital N2 Billion N5 Billion N200 Million- Unit

N1Billion – State

N5Billion – National
Service Area No restriction 25% operations in rural areas Physical restriction depending on type (Unit, State, National).
Loans Not Permitted Not Permitted Permitted
Bank

Accounts/Wallets

Bank   Led:   Bank

Account/Wallet

Non-bank   Led:

Wallet only

 Wallet only Bank   Account/

Wallet
Transfers (In/Out) Permitted Permitted [except from public and no forex transaction] Permitted   [no foreign transactions or foreign electronic transfers]
Airtime Purchase Permitted Permitted Permitted
QR Code Payments Permitted Permitted Permitted
USSD Service Permitted (subject to NCC consent) Permitted  (subject to NCC consent) Permitted (provided letter of no objection is issued by the CBN)
NIBSS Connection Required Required Required
Cards Debit Debit Debit & Credit
Agent Banking Permitted Permitted Permitted
Who Can Operate  Banks

Tech Coys

 Telcos

MMOS

Supermarkets

Courier coys

Fintech Companies

 Individuals, companies, or

foreign investors

In conclusion, MMOs, MFBs and PSBs offer services that are similar but not quite the same. It is important that investors and users of services under these platforms are aware of the functions and limitations permitted and imposed by the licenses before investing in or procuring the services of companies using these platforms.