Most organizations that employ expatriates actively manage their personal expectations and ensure compliance with expatriate employment regulations. The Federal Ministry of Interior (FMI) oversees the administration and enforcement of the Nigeria Immigration Act, 2015, and the Immigration Regulations, 2017, concerning wholly foreign-owned or joint venture companies and the employment of expatriates
Its key responsibilities include granting Business Permits and Expatriate Quota Approvals and monitoring quota utilization to ensure effective technology transfer to Nigerian understudies.
Managing expatriates in Nigeria requires careful planning to handle challenges like work permits, cultural differences, and legal requirements. Companies must provide support like housing and healthcare to help expatriates settle in. With the right approach, businesses can successfully integrate them, benefiting from their skills and expertise.
But First, Who Is an Expatriate?
An expatriate is a person who resides in a country other than their home country, either temporarily or permanently. While the term is commonly associated with professionals working abroad, it also applies to retirees seeking a new lifestyle, students pursuing education in foreign institutions, and individuals relocating for personal or family reasons.
Expatriates may move for career opportunities, business ventures, or cultural experiences, and their stay can be short-term or long-term, depending on work contracts, study programs, or residency status. Foreign nationals seeking to enter Nigeria for employment, trade, or business must obtain approval from the Comptroller General of Immigration (CGI). This approval is granted through Expatriate Quotas, Business Permits, and Work Permits.
Business Permit in Nigeria
Any company with foreign shareholders planning to operate in Nigeria, whether as a wholly owned entity or a joint venture, must obtain government approval before starting business activities. The company must have a minimum paid-up share capital of N100 million to qualify for a Business Permit.
According to Section 36 of the Nigeria Immigration Act and Section 12 of the Immigration Regulations, the Minister of Interior is responsible for approving Business Permit applications.
This approval is granted only after a thorough review process, involving multiple levels of scrutiny by Ministry officials within the Citizenship and Business Department (CBD). The review ensures compliance with legal, economic, and regulatory requirements before a business can lawfully commence operations in Nigeria.
To apply for a Business Permit, a company must submit the following documents to the Citizenship and Business Department (CBD) of the Ministry of Interior:
- An application letter on the company’s letterhead
- Certificate of Incorporation or Business Name Registration issued by the Corporate Affairs Commission (CAC)
- Memorandum and Articles of Association
- Feasibility Report, Business Plan, or Company Profile (if applicable)
- Relevant CAC forms
- Joint Venture Agreement (for partnerships between Nigerians and foreigners)
- Current Tax Clearance Certificate (for companies) or individual tax certificates (for partnerships)
- License, permit, or certificate from relevant government agencies for businesses in regulated sectors like oil and gas, healthcare, mining, and engineering)
- Proof of business premises ownership or lease agreement
- Certificate of Capital Importation with a bank cover letter or scannable QR code
- Proof of imported equipment or machinery (e.g., Form M, Proforma Invoice, shipping documents, Bill of Lading)
- Contract details, duration, and value (for companies in construction, civil engineering, or related fields)
- Evidence of capital importation or other funding sources
- Data page of international passports for directors or National ID (for Nigerians)
- Valid phone numbers and email addresses of authorized representatives
- Bank reference letter and statement showing tangible inflows supporting the feasibility study
The process of applying for a Business Permit may take several weeks, depending on compliance with regulatory requirements. However, note that a Business Permit does not authorize the employment of expatriates. Instead, a separate Expatriate Quota (EQ) is required for hiring foreign workers.
Expatriate Quota in Nigeria
Expatriate Quota allows companies to hire expatriates with specialized skills that are scarce or unavailable locally. It is initially granted for three years and can be renewed biennially twice, lasting up to seven years. However, for companies in the oil and gas sector, the approval is granted for two years and can be renewed once, with a maximum duration of four years.
The Honorable Minister of the Federal Ministry of Interior (FMI) issues quota approvals with specific conditions that beneficiary companies must follow. Each expatriate quota position filled must have two Nigerian understudies with a minimum qualification of B.Sc. or HND in the relevant profession or discipline. This ensures knowledge transfer and eventual indigenization of the role.
Companies using an Expatriate Quota must submit monthly quota returns to both the Nigeria Immigration Service (NIS) and the Ministry. Additionally, they are required to notify the NIS when an expatriate leaves the company or vacates an EQ-designated position.
Types of Expatriate Quota
- Permanent Until Reviewed (PUR) Quota which is reserved for top executives such as Managing Directors or Technical Directors.
- Temporary Expatriate Quota which is issued for a period of 3 years initially, renewable biennially for up to 7 years (except for the oil & gas sector, where it lasts a maximum of 4 years).
To apply for an Expatriate Quota, a company must provide the same documents as that listed above to the Citizenship and Business Department (CBD) of the Ministry of Interior. An Expatriate Quota does not replace a Work Permit, expatriates still need a Combined Expatriate Residence Permit and Aliens Card (CERPAC) to work legally. Quotas are subject to renewal and must comply with regulations on technology transfer and local employment.
Combined Expatriate Residence Permit and Aliens Card (CERPAC)
Any expatriate intending to live and work in Nigeria for more than 56 days must obtain a CERPAC. It is issued by the Nigeria Immigration Service (NIS) and is mandatory for all foreign nationals who wish to stay in Nigeria for work, business, or residency purposes.
However, certain categories of foreigners are exempt from obtaining a CERPAC, including missionaries, students from ECOWAS member states, Cameroonian nationals, individuals with special immigrant status, diplomats, government employees, members of international NGOs, and Niger-wives. All other foreign nationals are required to obtain a CERPAC.
To apply, an expatriate must submit the following documents to the Nigeria Immigration Service (NIS):
- Completed CERPAC Application Form
- Valid International Passport with at least 6 months validity.
- Expatriate Quota Approval Letter from the Federal Ministry of Interior.
- Business Permit for company owners.
- Employment Offer Letter & Acceptance Letter from the Nigerian Employer.
- Letter of Appointment & Job Description stating the expatriate’s role.
- Company’s Tax Clearance Certificate
- Evidence of Payment for CERPAC
- Two recent Passport-Sized Photographs
- Valid Visa & Entry Stamp
- Official Receipt of CERPAC Processing Fee
Expatriates are required to have their CERPAC with them at all times as evidence of their legal residency in Nigeria. Holding a valid CERPAC allows them to travel in and out of the country without restrictions throughout its validity period. Working in Nigeria without this permit is illegal and may result in deportation. Additionally, dependents, including spouses and children, must obtain their own residence permits to stay legally in the country.
Temporary Work Permit (TWP) in Nigeria
A Temporary Work Permit (TWP) is a short-term visa issued to foreign nationals who need to enter Nigeria for specialized, short-term assignments such as technical support, repairs, audits, feasibility studies, or consultancy services. It is typically granted for 90 days (3 months) and is not meant for long-term employment.
A TWP is required for expatriates entering Nigeria to perform short-term, specialized, or urgent assignments, including:
- Installation, maintenance, or repairs of equipment
- Feasibility studies and technical evaluations
- Audits and financial consulting
- Research and training
- Film production and documentary work
To obtain a TWP, the inviting Nigerian company must apply on behalf of the expatriate. The required documents include:
- Application Letter from the Nigerian company addressed to the Comptroller General of Immigration
- Business Registration Documents of the inviting company
- Letter of Invitation stating the purpose, duration, and nature of the assignment
- Contract or Agreement between the Nigerian company and the expatriate’s employer (if applicable)
- The Passport Data Page of the Expatriate
- Evidence of Return Ticket (showing intent to leave after the assignment)
- Visa Payment Receipt and completed application form
Managing Expatriates in Nigeria
Professionals responsible for handling expatriate employment, including Public Relations Officers, HR practitioners, regulatory personnel, and protocol officers, must effectively ensure immigration and regulatory compliance. They must adopt a proactive and solution-oriented approach to managing expatriate-related matters.
To effectively oversee immigration processes, they should have a strong understanding of visa categories, residency endorsements, and the required documentation for expatriates. Also, implement a reliable tracking system to ensure timely renewal of immigration permits and prevent lapses. Additionally, maintaining accurate records of expatriate quota utilization is important for compliance.
Conclusion
In conclusion, expatriate management in Nigeria requires collaboration between expatriates and various stakeholders, including HR practitioners, to ensure compliance with immigration regulations.
Expatriate employees should remain vigilant about the validity of their visas, residence permits, and other endorsements, seeking clarification whenever necessary. By understanding and fulfilling these responsibilities, expatriates can maintain seamless operations in Nigeria.
