Nigeria - Foreigners May Now Register Companies

The Nigerian Enterprises Promotion Decree of 1989 provided for restrictions on foreign ownership of Nigerian companies. As a result the Corporate Affairs Commission did not allow foreigners to register companies until such foreigners had obtained the appropriate regulatory permits and approvals. [The Corporate Affairs Commission is the body responsible for the registration of companies in Nigeria.] As it often took months (and sometimes years) to obtain these permits and approvals, a foreigner who wished to promptly establish his Nigerian business vehicle and secure his preferred company name had to use Nigerian nominees as the initial shareholders of the company.

In order to encourage foreign investment in Nigeria the Nigerian government recently repealed the Nigerian Enterprises Promotion Decree and promulgated the Investment Promotion Commission Decree of 1995. The restrictions on foreign ownership no longer exist. Consequently, the Corporate Affairs Commission has indicated that it will now allow the registration of companies whose subscribers or shareholders are foreigners. The foreigners may then proceed to apply for such permits and approvals as may still be required, secure in the knowledge that the proposed business vehicle is in place.