FAQ

A Business Permit is an official approval issued by the Ministry of Interior that authorises a company with foreign participation to legally operate in Nigeria. It is required for companies that are:

• wholly owned by foreign investors, or
• joint venture by foreign and Nigerian shareholders

The Business Permit confirms that the company has obtained the necessary regulatory approval from the Federal Government to carry on business activities in Nigeria in compliance with applicable laws and regulations.

A Business Permit is required for companies that have foreign participation in their ownership structure. This includes:

• wholly foreign-owned companies
• joint venture companies with both foreign and Nigerian shareholders

Companies that are 100% Nigerian-owned (indigenous companies) are not required to obtain a Business Permit. However, such companies may still apply for Expatriate Quota approvals where there is a demonstrated need to employ foreign professionals.

No. For companies with foreign participation, obtaining a Business Permit is a mandatory prerequisite for applying for an Expatriate Quota. Any application for an Expatriate Quota submitted without a valid Business Permit, or without a concurrent application for a Business Permit, will not be processed by the Ministry of Interior. Companies are therefore required to secure a Business Permit before submitting an Expatriate Quota application.

Companies that already hold a Business Permit must apply for an amendment where there are material changes to the company’s structure or operational details. An amendment is required where there are changes in:

• the composition of the Board of Directors
• the company’s registered address or business location
• the nature or line of business activities as registered with the Corporate Affairs Commission (CAC)
• the company name
• ownership structure or shareholding arrangements affecting foreign participation

Failure to update the Business Permit where changes occur may result in non-compliance with regulatory requirements.

An Expatriate Quota is an approval granted by the Ministry of Interior that allows a company operating in Nigeria to employ a specified number of foreign professionals in designated positions. The Expatriate Quota system is designed to:

• enable companies to fill skill gaps where qualified Nigerian professionals are not readily available
• promote knowledge transfer to Nigerian employees
• support capacity development and eventual localization of roles

Each approved quota position specifies the job title and duration for which a foreign national may be employed.

An Establishment Grant is the initial approval issued to a newly registered company to employ expatriates under the Expatriate Quota system. It applies to:

• wholly foreign-owned companies
• joint venture companies
• indigenous companies
• non-governmental organisations (NGOs)

The Establishment Grant is typically valid for an initial period of three (3) years, after which the company may apply for renewal of the approved quota positions.

An Additional Expatriate Quota is an approval granted to a company that already holds an Establishment Grant but requires additional expatriate positions due to expansion of its business operations. Companies may apply for additional quota slots where:

• Business activities have increased
• new projects require specialized expertise
• operational needs justify engagement of additional foreign professionals

Additional quota positions are typically granted for a period of two (2) years and may be renewed subject to continued justification.

A Renewal of Expatriate Quota allows companies to extend the validity of existing expatriate quota positions beyond the initial approval period. The standard renewal structure is as follows:

• first renewal: granted after the initial three (3) year Establishment Grant period
• second renewal: granted for an additional period of two (2) years

Renewal applications must demonstrate continued need for the expatriate role and evidence of efforts to train Nigerians to assume the position in the future.

Expatriate Quota positions are generally expected to be localised after a maximum period of seven (7) years. Localisation means that the role should be transferred to a qualified Nigerian employee. Where a company is unable to localise the position within this period, it may apply for De-tagging. De-tagging is a formal request to remove the 7-year restriction, allowing the position to remain eligible for renewal. Approval of De-tagging is subject to satisfactory justification and supporting evidence.

Yes. A company may apply for Re-designation where there is a need to change the title or function of an existing approved quota position. Re-designation may be necessary where:

• the company is unable to recruit for the originally approved role
• operational priorities have changed
• organizational restructuring requires adjustment of job roles

Approval is subject to justification demonstrating that the revised role aligns with the company’s operational needs.

Expatriate Quota positions are generally approved for a maximum cumulative period of seven (7) years. During this period, companies are expected to implement training and capacity development programmes to enable qualified Nigerians to assume the roles. At the end of the 7-year period, the position is expected to be localized unless special approval is granted.

Upgrade to Permanent Until Review (PUR) is a special status granted to selected key expatriate positions that are considered critical to the sustainability of foreign investment in Nigeria. PUR status is typically granted for positions such as:

• Managing Director
• Chief Executive Officer
• Chairman
• Technical Director

PUR allows the position to remain occupied by a foreign national without being subject to the standard 7-year localisation requirement. Approval is based on the strategic importance of the role to the company’s investment and operations.

Yes. A newly registered company may apply for PUR status at the time of applying for its Establishment Grant. Companies may request PUR status for a limited number of key management positions in order to ensure continuity of leadership and protect foreign investment interests. Approval is subject to evaluation by the Ministry of Interior.

Revalidation of PUR is the process through which companies holding Permanent Until Review (PUR) quota positions confirm continued compliance with prevailing government policies. Where there are changes in immigration or expatriate employment regulations, companies may be required to apply for revalidation to ensure that previously granted PUR positions remain valid.

Where an application is partially approved or declined, the company may submit an Appeal to the Ministry of Interior. For example, where a company applies for a specific number of quota positions but fewer positions are approved, the company may request reconsideration of the outstanding positions. Appeals must include:

• a formal justification
• additional supporting documentation
• evidence demonstrating the need for the requested positions

Each appeal is reviewed on its merits.

Operating a company with foreign participation without obtaining the required Business Permit or employing expatriates without approved quota positions constitutes a violation of Nigerian immigration regulations. Consequences may include:

• administrative penalties and fines
• revocation of approvals
• deportation of unauthorised expatriate personnel
• suspension or closure of business operations

Companies are strongly advised to ensure full compliance with all regulatory requirements.

All applications for Business Permits and Expatriate Quota approvals are processed online through the Citizenship and Business Department Portal. Application steps:

1. Register: Create a company profile on the portal.
2. Apply: Complete the relevant application forms and upload required supporting documents such as incorporation documents and tax records.
3. Pay: Make payment through the secure online payment platform.
4. Track: Monitor application status through the company dashboard. Status updates may include Pending, Queried, or Approved.