Doing Business In Nigeria: A Simple Guide to Foreign Participation by Temitope Bankole

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On the 6th of April 2014, Nigeria was announced as the largest economy in the African Continent after rebasing the Gross Domestic Product of the Country which was last carried out in the 1990s.The new estimate of Nigeria’s GDP adds previously uncounted industries like telecommunications, information technology, music, airlines, burgeoning online retail outlets and Nollywood film production that didn’t exist when the last GDP count was made in 1990.Nigeria has 100 million cell phone users. According to the Finance Minister; Ngozi Ikonjo-Iweala during a news conference the recalculation makes Nigeria the 26th largest economy in the world and raises its per capita income to $2,688, making it No. 121 in the world, up from No. 135.

Nigeria is Africa’s most populous country with 170 million people. It has been growing as an investment destination owing to the size of its consumer market and growing capital markets.Finance Minister Ngozi Okonjo-Iweala told Reuters last week that billions of dollars of foreign and domestic investment were envisaged for this year, including $1.5 billion in agriculture. It wont be out of place to say that Nigeria is a strategic market for all manner of Foreign Investments.

It is important to state at this juncture that Nigeria is a free enterprise and anyone can do business in Nigeria as long as its not an illegal business contained in the Negative list of the Nigerian Investment Promotion Commission(“NIPC”). A foreigner is free to do business alone or in partnership with another person however he/she must comply with the provisions of Section 54 of the Companies and Allied Matters Act(“CAMA”)

Essentially, Section 54 CAMA provides to the effect that every Foreign Company that wants to carry out business in Nigeria should take all necessary steps to obtain incorporation as a separate entity in Nigeria for that purpose. The law stipulates that until incorporation the foreign company should not carry out business in Nigeria or excersise any of the powers of a registered Company. Where a Foreign Company fails to Comply with the provisions of the Act, any transaction it enters into would be null and void. Thus the law Courts will not enforce the Contract at the instance of any party to the transaction.There are however exceptions to this general rule they include:

1. Foreign Companies invited to Nigeria by or with the approval of the Federal Government to execute only
specified individual projects
2. Foreign companies which are in Nigeria to execute special loan projects on behalf of donor countries
3. Foreign companies which are in Nigeria to execute special loan projects on behalf of donor countries
4. Engineering consultants and technicians engaged on any individual specialist project under contract with any
governments in the Federation or Government Agencies where the contract has been approved by the Federal
Government.

Before commencing business, a Nigerian entity with Foreign participation would need to register NIPC.The Commission is esthablished to encourage,promote, co-ordinate,and monitor investments in Nigeria.The entity can then proceed to obtain operational licenses from the relevant regulatory bodies e.g To carry out business in telecommunication,operational license would be gotten from the Nigerian Communication Commission. Business permits, work permits and expartraite quote for foreign employees would also be obtained from relevant agencies.

Foreigners are free to bring in any recognised foreign currency into Nigeria this is however subject to money laundering restrictions.Such funds will have to be brought in through an authorised dealer (usually a bank authorised by the Central Bank of Nigeria(“CBN”). The bank then to issue a certificate of capital importation (“CCI”) to the investor to evidence the inflow of such funds into Nigeria. Where capital is not imported in form of funds but is imported in form of equipment, machinery or raw materials, it will be appropriate to get a CCI.

Thers are different types of business organization that a foreigner can participate in as provided in “CAMA”
they include:
a. Limited Liability Company
b. Unlimited Liability Company
c. Company Limited by Guarantee
d. Partnership
e. Sole proprietorship
f. Incorporated Trustees

ARTICLE DISCLAIMER: The contents of this Article are intended for general informational purposes only and are not intended for specific application to any particular set of facts and circumstances. This Article is not a substitute for legal counsel on any particular matter

MEET VERONIKA SCOTT by Temitope Bankole

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heroicdesignveronika

There are around 20,000 counted homeless in Detroit area in the United States of America, In 2011 Veronikka Scott started The Empowerment Plan, a non-profit that employs homeless women to make weather resistant Jackets that also doubles as a waterproof sleeping bag for homeless people in Detroit at the grand age of 20. By age 23, she had already received prestigious awards including the JFK New Frontier Award(2012).
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ITS YOUR TURN TO SUCCEED by Temitope Bankole

Have you ever had a dream or an idea that you belived in but when you shared it with other people you were adviced ‘O dear forget about it, achieving that is almost impossible’ or ‘Dont waste your time, go do something else’ or ‘Oh you are too young leave that to more matured people’.

You are responsible for your success, friends and family may not share the same enthusiasm you have about your idea, however thats not an excuse to give up.Most times we seek validation from other people to get things done, this type of thinking is not healthy as it will slow you down. People around you wont respect you untill your success is independent of them. Dont get me wrong, it is important to collaborate with other people, however dont seek validation before you set out to get things done. Its important you have healthy self esteem and belive in your abilities.

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Personal Development Videos

Hello friends how have you all being? Today i decided to share a video of a lady i love and consider inspiring, she is Sarah Blakely the youngest self made female  billionaire!  Also in addition to Sarahs inspiring video is what i would consider a tutorial by Brian tracy on 10 keys to personal power. Hope you find the videos inspiring.

Do have a great week

SARAH BLAKELY

BRIAN TRACY-10 Keys To Personal Power

7 FACTORS YOU SHOULD CONSIDER BEFORE YOU SET UP YOUR BUSINESS by Temitope Adewoye

An entrepreneur is a man or woman who perceives, discover or recognizes business opportunities or business idea, he or she organizes and manages scarce resources such as land, labor, capital etc. or manage what can be described as the six ‘Ms’ of Management such as;
1. Man (e.g.-staff, customers, partners etc)
2. Machine –e.g.-(depending on your field as a writer the example of my machine is my computer and my writing materials)
3. Money (e.g. capital)
4. Management (e.g. Leadership-your business will not grow beyond you)
5. Market (e.g. your target audience)
6. Method (style and strategies)

As an entrepreneur you must be able to manage the above mentioned (man, money, machine, market, management and method) effectively to solve a problem, achieve sales and make profit.

Entrepreneurs see problems as an abandoned project then take action to identify the solution to those problems and the customers who will pay to have those problems solved.

Business opportunity refers to people (individual or groups), institutions, and organization that have needs, wants or desires to fill they also have the purchasing power.
To meet the needs of your customers, it is imperative that you don’t err on the side of the law and you structure your business in such a way that it is sustainable over time. Before you begin your business, you need to take cognizance of certain factors that can make or mar your business:
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