The Companies and Allied Matters Act (“CAMA”) 2020 is the principal legislation governing all companies in Nigeria and provides the legal framework for incorporation, regulation and winding up of companies in Nigeria.
Foreigners who are looking to do business in Nigeria can do so via several ways, and subject to the provisions of CAMA.
Participating in business in Nigeria for foreigners could take several forms; such as registering a limited liability company, operating as an unregistered exempted company, foreign portfolio investment and foreign direct investment (FDI).
Foreigners can own or control any business in Nigeria except the businesses in the Negative list category such as the production of arms and ammunition, production of military and paramilitary wears and also the production of narcotics.
Setting up a business in a foreign country can be herculean, owing to the fact that one may know very little of the laws and regulations governing businesses in the terrain. The system in Nigeria is quite straightforward and the government has put up several investment incentives and reliefs to encourage foreign investors seeking to do business in Nigeria.
Some of the regulatory agencies responsible for the regulation of businesses in Nigeria including participation by foreigners include: The Corporate Affairs Commission (CAC), Nigerian Investments Promotion Commission (NIPC), Securities and Exchange Commission (SEC), National Office for Technology Acquisition & Promotion (NOTAP), The Central Bank of Nigeria (CBN), Ministry of Trade and Investment, Federal Inland Revenue Service (FIRS), National Insurance Commission (NICOM), The Economic and Financial Crimes Commission (EFCC) and the Federal High Court.