How to Obtain Expatriate Quota in Nigeria: Requirements & Process

How To Obtain Expatriate Quota In Nigeria and Requirements for Expatriate Quota In Nigeria.

Expatriate quota is a type of authorization given by the Ministry of Interior to businesses and registered firms to hire foreign nationals with the necessary capabilities with the intention of teaching Nigerian understudies and passing on the necessary knowledge during the job period.

The essence of having a quota system for the hiring of foreign nationals is so as to stop the indiscriminate hiring of foreign nationals for positions where qualified Nigerians are available to fill them. The Expatriate Quota is another tool for ensuring that necessary technology is transferred to Nigerians.

There are provisions for the employment of expatriates in Nigeria in the Nigerian Immigration Act, Cap. 171, LFN 2004, and the Immigration Regulations enacted thereunder. According to the Act1, any foreigner applying for a job or a work visa in Nigeria must get the Comptroller General of Immigration’s approval.

An Expatriate Quota is the form in which this consent is given (EQ). The EQ allows businesses to hire foreign nationals for a set number of years in positions that have been officially approved.

Requirements for the Grant Of An Expatriate Quota in Nigeria.

To secure an expatriate quota, a company must provide the following documents:

1. Corporate Affairs Commission (CAC) Incorporation documents
2. Business Permit (Not applicable to companies with 100% indigenous ownership)
3. Feasibility study report
4. Evidence of imported machinery (where Applicable)
5. Lease agreement or certificate of occupancy of business premises
6. Latest tax clearance certificate of the company
7. Permit or Certificate from the appropriate regulatory body (where the company is involved in oil services, health services, fishing, mining, or construction)
8. Proof of the completed job and the contract’s worth if the business is engaged in building, civil engineering, or construction.
9. Proposed annual salaries for the foreign workers to be hired, along with a list of their names, titles, and qualifications.
10. Comprehensive training programs for the Nigerian understudies
11. Certificate of Capital Importation (not applicable to businesses that hold 100% indigenous equity)
12. Bank Reference Letter
13. Completed Immigration Form T1, fully filled out

Expatriate Quota Application Duration.

The processing of an EQ typically takes around 20 working days. When granting an expatriate quota, genuine local skill shortages are carefully considered in the decision-making process regarding the approval of slots. It’s noteworthy that there is no specific cap on the number of EQ positions that can be offered; however, a strong emphasis is placed on hiring Nigerians whenever the required skills are available locally.

 

What are the Types Of Expatriate Quota?

There exist two distinct types of EQ: Permanent Until Reviewed (PUR) and Temporary EQ.

A PUR is granted on a longer-term basis, typically reserved for a company’s highest echelon, such as the Chairman or Managing Director. This designation serves to safeguard the interests of investors, offering stability and continuity. In contrast, Temporary EQs are allocated for positions filled on a temporary basis.

Beneficiaries of EQ approvals are mandated to engage two Nigerian understudies for each approved position. Additionally, they are required to submit monthly immigration returns to both the Nigerian Immigration Service and the Ministry of Interior. The initial expatriate quota is granted for a three-year term. However, subject to a maximum of 10 years, it can be renewed for additional terms of two years each. Throughout this period, the imperative is to ensure the transmission of necessary skills to proficient Nigerian understudies.

 

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Any qualifying company, firm, or organization, regardless of its ownership structure, is eligible to be granted expatriate quota slots. Even companies with 100% foreign ownership are not exempt from this opportunity. The key criterion lies in the proper registration and licensing of the company in Nigeria, signifying its legitimacy to conduct business operations. Such a duly registered and licensed company can submit an application for an EQ.

 

Moreover, the Federal Ministry of Interior has recently enforced additional guidelines through a Public Notice, aiming to regulate Expatriate Quota, related matters, and business residency in Nigeria. Effective from the 24th of January 20223, these guidelines impose certain obligations on organizations seeking new EQ posts or renewing existing positions in their EQ portfolio.

 

Specifically, companies are now required to subject their facilities to inspections and remit a Company Inspection charge4. Additionally, organizations with approved EQ facilities must submit Expatriate Monthly Returns detailing the utilization of these facilities. Notably, the National Identity Numbers (NIN) of both expatriates and their Nigerian understudies must be included in these returns.

 

More on How to Obtain Expatriate Quota in Nigeria. 

 

As per this guideline, organizations must formally communicate with the Office of the Director, Citizenship and Business Department of the Ministry of Interior, introducing their representative or consultant to the Ministry.

In concluding the application process, it is imperative that the information of the representative or consultant be provided, including two copies of recent passport photos and a photocopy of the official identification card. This comprehensive submission ensures a thorough and transparent engagement with the Ministry of Interior.

Furthermore, it is essential to underscore that the lion’s share of responsibility for compliance and preventing Expatriate Quota (EQ) abuse falls squarely on the shoulders of employers. The consequences of negligence are weighty and can significantly impact the reputation and operations of the organization.

Details on How to Obtain Expatriate Quota in Nigeria and Requirements for Expatriate Quota In Nigeria

As a matter of legal clarity, hiring a non-Nigerian mandates obtaining prior permission from the Ministry of Interior. For businesses operating in regulated industries, securing additional licenses from the principal authorities is imperative, supplementing the Minister’s authorization. The onus is unequivocally on employers to prioritize and ensure full compliance with the law, safeguarding their interests and maintaining the integrity of the employment process.

 

That is all on How to Obtain Expatriate Quota in Nigeria. It is now time to learn about the requirements for Expatriate Quota In Nigeria as published in NIS official website.

 

Nigeria Expatriate Quota Requirements

All applications by Companies for Business Permit and Expatriate Quota should be accompanied by the following documents:

Business Permit

For only Joint Venture and Wholly Foreign Owned Companies.

NOTE: For Business Permit, the Authorized share capital must not be less than 100 million in respect of each Company.

• Certificate of Incorporation;
• Memorandum and Article of Association;
• Feasibility Report (should be certified or registered with Corporate Affairs Commission (CAC).
• Corporate Affairs Commission’s CAC Form C02 & C07 OR CAC 2.2, CAC 2.3 & CAC 2.5 OR CAC 1.1
• Joint Venture Agreement for partnership venture between Nigerian and Foreigners (original to be presented for sighting).
• Company’s Current Tax Clearance Certificate (Original to be presented for sighting).
• Lease Agreement for C of O for operating premises (original to be presented for sighting).

Grant of Expatriate Quota Only

• Certificate of Incorporation.
• Memorandum and Article of Association.
• Feasibility Report (should be certified or registered with Corporate Affairs Commission (CAC).
• Corporate Affairs Commission’s CAC Form C02 & C07 OR CAC 2.2, CAC 2.3 & CAC 2.5 OR CAC 1.1
• Upload CAC Memorandum for Guidance Of Applicants (FOR NGOs, Religion Bodies, Educational Bodies e.t.c)
• Joint Venture Agreement for Partnership Venture between Nigerian and Foreigners (original to be presented for sighting).
• Company’s Current Tax Clearance Certificate (Original to be presented for sighting).
• Lease Agreement for C of O for Operating Premises (original to be presented for sighting).
• Evidence of Imported Machinery such as; Form M, Pro Forma invoice, Shipping Documents and Clean Certificate of Inspection issued by Government appointed Pre-Shipment Inspection Agents.
• License / Permit / Certificate from relevant Government Agencies / Department / Ministries for the Operation or Execution of Project if Company is Engaged in oil Services, health care services, fishing, mining, constructions (Work Registration Board), etc. (original to be presented for sighting).
• Evidence of work at hand, its duration and value attached to the contract(s) if the Company is engaged in building, Civil Engineering, Construction, etc. (original to be presented for sighting).
• Proposed Annual Salaries to be paid to the Expatriates to be recruited indicating Designation, Names, Jobs Description and Qualifications (CV and copies of credentials of Expatriates to be attached).

Renewal of Expatriate Quota

• Corporate Tax Clearance Certificate (original to be presented for sighting).
• Current Tax Clearance Certificate of the Expatriates (original to be presented for sighting).
• Expatriate Quota Returns for the three months preceding the date of approval;
• Detailed Training Program for Nigerians.
• List of Nigerians understudying Expatriate on prescribed format showing Date Employed, Qualification, etc.
• List of Nigerian Senior/Management Staff showing names Designations, Qualifications, Salaries Per Annum.
• Certified Current Audited Accounts and
• Annual Income Tax Clearance Certificate of the Expatriate staff (original to be presented for sighting).

Additional Expatriate Quota

• Corporate Tax Clearance Certificate (original to be presented for sighting).
• Current Tax Clearance Certificate of the Expatriates (original to be presented for sighting).
• Expatriate Quota Returns for the three months preceding the Date of Approval.
• Detailed Training Program for Nigerians.
• List of Nigerians understudying Expatriate on prescribed format showing Date Employed, Qualification, etc.
• List of Nigerian Senior/Management Staff showing names Designations, Qualifications, Salaries Per Annum.
• Certified Current Audited Accounts.
• Annual income tax Clearance Certificate of the Expatriate staff (original to be presented for sighting).
• Evidence of Acquired Machinery or Expansion if Company is engaged in manufacturing in the Form C of Inspection (CCI) issued by Government appointed Pre-Shipment Inspection Agents.
• Evidence of new contract if Company is engaged in Construction/Engineering and Oil (original to be presented for sighting) see b (ii) for guidance and
• Evidence of acquired farm/factory if Company is engaged in agro-allied business (original to be presented for sighting).

Restoration of Quota

• In applying for Restoration, there must be reasons and proof for the reactivation and revitalizing the company i.e. Previously Depressed Economy, increased demand for the Company’s Product / Services and Acquisition of New Machinery i.e. Clean Certificate of Inspection (CCI) issued by Government appointed Pre-shipment Inspection AGENTS.

Re-Designation of Quota

• In cases where a Company has difficulty in filling or owing to Exigency of Operations, it is at liberty to apply for the Re-Designation of the affected position and this will be considered, purely on its own merit

How to Obtain Expatriate Quota in Nigeria: the requirements for Expatriate Quota In Nigeria. 

Permanent Until Reviewed Quota – (PUR)

• The main reason for the granting of PUR Quota slot for which a Certificate would be issued, is to enable the Foreign Subscriber(s) adequately protect their interest and to give them a sense of greater commitment. The criteria and documents required for PUR are:

NOTE: Other factors that would also be considered when considering PUR request include:

• Minimum Share Capital should be N100 Million.
• Appreciable net profit of which not less than N2 million has been paid as Corporate Tax (original to be presented for sighting).
• Certificate and Detailed Audited Account.
• Certificate of Incorporation.
• Monthly Returns of Expatriate Quota.
• Company Organization Structure Address Icon.
• Individual Income Tax Clearance Certificate of the Expatriates (original to be presented for sighting).
• Political /policy direction of Government.
• Company’s area of Business to fall within the priority sectors of the economy.
• Evidence that PUR would Guarantee Technology Transfer and
• Company should have large Quota Portfolio and Corresponding shareholding as an added qualification.

Quota for Indigenous Company (Fully Owned By Nigerians)

• Certificate of Incorporation.
• Memorandum and Article of Association.
• Feasibility Report (should be certified or registered with Corporate Affairs Commission (CAC).
• Corporate Affairs Commission’s Form CAC 2.3& 2.5 or CAC C02 & C07.
• Company’s Current Tax Clearance Certificate (Original to be presented for sighting).
• Lease Agreement for C of O for Operating Premises (original to be presented for sighting.
• Evidence of Imported Machinery, such as, Form M, Pro forma invoice, shipping documents and Clean Certificate of Inspection issued by Government appointed Pre-Shipment Inspection Agents.
• License / Permit / Certificate from relevant Government Agencies / Department / Ministries for the operation or execution of project if Company is engaged in Oil Services, Health Care Services, Fishing, Mining, Constructions (Work Registration Board), etc (original to be presented for sighting) and
• Evidence of work at hand, its duration and value attached to the contract(s) if the Company is engaged in Building, Civil engineering, construction, etc (original to be presented for sighting); proposed annual salaries to be paid to the expatriates to be recruited indicating designation, names, jobs description and qualifications (CV and copies of credentials of expatriates to be attached).

Amendment of Business Permit

NOTE: Board Resolution should indicate names of Directors present at the meeting and must be fully signed by the Chairman and Company Secretary.

• Board Resolution on the changes in either the composition of the Board of directors, Location of Business or line of activities duly registered with Corporate Affairs Commission;
• Extract of Minute of Board of Directors Meeting showing decision taken and attendance.
• Evidence of Resignation / Appointment of Directors (old & new) where applicable; and

Company Current Tax Clearance Certificate (original to be presented for sighting).

Download the Expatriate Quota In Nigeria using the button or visit the official website via ecitibiz.interior.gov.ng/expatriate/requirements to get the requirments or  download .   Expatriate Requirements PDF

 

 

 

That is all the latest information available to Ejes Gist News on How to Obtain Expatriate Quota in Nigeria. You can also read What is the Expatriate Employment Levy Suspended by the FG All About?