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Expatriate quota in Nigeria is granted by the Ministry of Interior to foreign-owned or indigenous companies. The purpose is to enable them to employ or recruit foreign employees to legitimately work and live in Nigeria. Application for expatriate quota can be made upon commencement of business or immediately after incorporation of a company and can also be granted after an initial grant in a circumstance where a company needs to employ more expatriates.
Upon grant of expatriate quota, a Subject to Regularization (STR) Visa would be processed to help in obtaining the mandatory Combined Expatriate Residence Permit and Aliens Card (CERPAC). The Expatriate Quota enables the company to be able to process an STR Visa for its expatriates, which will enable such expatriates to obtain CERPAC. A subject-to-regularization visa is a visa issued to expatriates who have been invited to Nigeria on business or employment offers while CERPAC is a permit issued to non-Nigerians to enable them to reside in Nigeria and carry out an approved activity as specified on the permit such as employment.
The grant of an Expatriate Quota depends largely on the nature, relevance, and duration of the position to be held by the expatriate. However, the Federal Ministry of Interiors currently issues Expatriate Quotas for a period of two (2) years in the first instance, renewable biennially for two consecutive times within a lifespan of seven (7) years, except for companies in the oil and gas industry whose approval will be for an initial period of 2 years and renewable once within a life span of 4 years.
Members of the Economic Community of West African States (ECOWAS) are exempted from obtaining CERPAC, provided that the citizens of member countries registers with the service as nationals of ECOWAS. Also, Expatriates directly employed by Government are exempted from the grant of expatriate quota.
Read Also: Applying for a Nigerian Subject to Regularization (STR) Visa 2022
REQUIREMENTS FOR OBTAINING AN EXPATRIATE QUOTA IN NIGERIA
Application for expatriate quota is done by submitting the following online:
- Duly completed registration form
- CAC Incorporation documents
- Feasibility report to be registered with CAC.
- Certified current audited account and bank reference letter
- Proposed annual salary to be paid to the expatriate worker indicating their designation, names, and duration of employment
- Joint Venture Agreement (JVA) for partnership ventures between Nigerians and foreigners, where applicable
- Company’s Tax Clearance Certificate
- Lease agreement or C of O for operating premises, where applicable
- Particulars of training programs for Nigerians
- List of Nigerians working in the company to understudy the expatriates
- License or permit from government agencies where the company engages in specialized sectors such as the oil and gas sector, telecommunications, health, etc.
- Evidence of capital importation, where applicable.
- Business Permit
- Payment of prescribed fees
- Certificate of no objection
REQUIREMENTS FOR RENEWAL OF EXPATRIATE QUOTA IN NIGERIA
Where the quota expires, it must be renewed by the company before the expatriate can obtain or renew his or her CERPAC. The requirements for the renewal of Expatriate Quota are as follows:
- Copy of the expiring Quota
- Certificate of Incorporation & other incorporation documents as may be required
- Payment of prescribed fees
- Report on the usage of the expiring quotas.
UPGRADE OF EXPATRATE QUOTA TO PERMANENT UNTIL REVIEW (PUR)
This is granted to deserving wholly foreign and joint venture companies to elevate them from a Renewable Expatriate Quota Position to a Permanent Until Review (PUR) status. Companies can also re-designate their PUR privileges from an old expatriate to a new expatriate that is being brought into the country, this process enables the Company to avoid the wait of 15 to 20 years after bringing in the New Expatriate to apply for a new “Permanent Until Reviewed” positions. The effect is that the old one loses his privileges while the new one acquires them.
PROCEDURE FOR UPGRADE/REVALIDATION OF RENEWABLE EXPATRIATE QUOTA TO PERMANENT UNTIL REVIEWED STATUS
- Application on Company’s letterhead
- Corporate Affairs Commission’s Form CAC 2.3 & 2.5 or CAC C02 & C07 or CAC 1.1 or e – Status report (as applicable)
- Business Permit
- Minimum Paid–Up Share Capital of N100 Million
- Corporate Tax Clearance Certificate for the past six (6) years
- Current Certified Audited Report/Statement of Affairs and acknowledgment letter from Corporate Affairs Commission (CAC)
- Certificate of Incorporation
- Three Months Expatriate Quota Returns
- Company Organizational Structure showing positions held by expatriates
- Individual Income Tax Clearance Certificate for the past six (6) years of the expatriate requesting PUR
- The volume of massive and verifiable investment in Nigeria and corporate social responsibility activities are essential
- Evidence of indigenization/localization of expatriate quota positions (if any)
- I.T.F Compliance Certificate
- Expatriate Quota approval letter bearing the position(s) to be upgraded or revalidated; and
- Evidence of Nigerians employed with a TIN number, NIN number, e-mail, and phone number.
THE COST OF OBTAINING A QUOTA
The cost of obtaining an expatriate quota is as follows:
service | Automation fee | Processing fee | Approval fee | Portal fee |
Grant of expatriate quota | NGN100,00 | NGN100,000 | NGN50,000 per slot | NGN50,000 per slot |
Renewal of expatriate quota | N/A | NGN50,000 | NGN50,000 per slot | NGN50,000 per slot |
Additional expatriate quota | N/A | NGN100,000 | NGN50,000 per slot | NGN50,000 per slot |
Redesignation of expatriate quota | N/A | NGN50,000 | NGN50,000 per slot | NGN50,000 per slot |
Upgrade of PUR to PUR expatriate quota | N/A | NGN100,000 | NGN5,000,000 per slot | NGN2,000,000 per slot |
Redesignation of PUR expatriate quota | N/A | NGN100,000 | NGN2,500,000 per slot | NGN1,000,000 per slot |
Revalidation of PUR expatriate quota | N/A | NGN100,000 | NGN5,000,000 per slot | NGN500,000 per slot |
Read Also: Ghana: What is the Difference Between GIPC Quota and Work Permit from Immigration?
THE TIME FRAME FOR OBTAINING AN EXPATRIATE QUOTA
Application for expatriate quota takes at least eight (8) weeks and can take way longer than this depending on the Ministry.
CONCLUSION
The approval for a grant of an expatriate quota has been simplified by the government to encourage investors willing to invest in the Nigerian economy to work or monitor their businesses. Measures have also been put in place to ensure foreign directors or owners of businesses can have such expatriate quota easily and permanently until it is reviewed. Looking for regulatory and complaince services related to expatriate quota? Focus on your business whilst we handle that for you. Contact us today here