Wednesday, February 12, 2014

Employment of Foreigners - Nigeria

Visa and Work Permits - A non-Nigerian requires the consent of the Ministry of Internal Affairs to do business in Nigeria. The approval is conveyed in a letter styled business permit.

Expatriate Quota

On application to the Federal Ministry of Internal Affairs, approval can be given to a company proposing to employ expatriates for senior management, technical or specialist posts. Approval will not normally be given to employ expatriates to do jobs for which there are suitably qualified Nigerians, it is therefore the responsibility of an applicant to prove that the employment of an expatriate is unavoidable.

The expatriate quota approval for a new company with non-Nigerian participation is usually stated in the business permit. An increase in expatriate quota and the number of expatriates approved for a wholly indigenous company is usually conveyed in a letter from the Federal Ministry of Internal Affairs.

An expatriate quota is granted for specific jobs and, generally, is for a specific number of years except for one or two key personnel the quota for whom may be permanent until reviewed. Capitalization of 5 million attracts an automatic quota of two while a capitalization of 10 million or more attracts four.

Residence Permits

When an expatriate quota is granted, application is made through the appropriate Nigerian Embassy or High Commission abroad for resident permits (entry permits). This is in addition to visa requirements where applicable. Generally, evidence of academic, professional or technical qualification and/or experience is required to be produced. A person (usually the prospective employer) resident in Nigeria must give a written undertaking to bear all immigration responsibilities in respect of person(s) covered by the application.

Families of Expatriates

Wives and children of expatriates with entry permits are also granted entry permits freely on application, but they require specific permission to work in Nigeria except on a voluntary non-remuneration basis for charity.

Visa

Generally, a foreigner requires a visa to enter Nigeria. The only exception relates to citizens of member states of the Economic Community of West African States (ECOWAS) who required only entry permits. The former exemption granted to Commonwealth citizens from the requirement to obtain information from the nearest Nigerian Embassy or High Commission seeking clarification concerning their status.

Leave

An expatriate on leave is counted as part of the quota.
 
Returns

Periodic returns in respect of expatriate quota in a specified form have to be submitted to the Federal Ministry of Internal Affairs. Failure to do so may create embarrassment.
 
Final Departure

When an expatriate employee leaves Nigeria finally, the Department of Immigration must be informed.
 
Visitors' Permits

It is possible to obtain visitors' permits on application to the Nigerian High Commission or Embassy abroad. Permits are usually granted for 28 days but the visitor must have a return ticket on arrival in Nigeria. Persons with visitors' permits must not take up employment in Nigeria.
 
Temporary Quota

The Immigration Department may, on application, grant a temporary expatriate quota for a short period. A temporary quota is usually for specialists required for, say, three months to install or service a special type of machine or equipment. Non residents negotiating one-time contract work in Nigeria should discuss the immigration implications with the prospective employer, particularly where the non-resident intends to apply for exemption from incorporating a local company under Sections 56-60 of the Companies and Allied Matters Decree, 1990. In such a situation, the Nigerian employer may have to apply directly to the Federal Ministry of Internal Affairs for a special quota for the purpose of the job.
 
Employees' Associations and Labour Unions

Provision is made in the labour laws for the formation of employers' associations and trade/labour unions on the basis of similarity of business interest or occupations. At present, there are 42 Trade Labour unions memberships and 19 Senior Staff Associations' in the country.
 
Social Security

Both employer and employees contribute to approved provident funds. In some cases, employees do not make any contribution to pension funds. The eligibility of a worker to benefit from pensions, retirement or gratuity schemes varies from one employment to another. Invariably, the terms are contained in contracts of employment or collective bargaining agreements with registered trade unions. Social security schemes are approved by the Joint Tax Board and subject to renewal annually.
 
Other Benefits

Other benefits include maternity leave and pay, medical and year-end bonuses.
 
Workmen's Compensation

Employers are obliged to provide accident insurance for their employees
Reference


 

Friday, August 10, 2012


Six (6) Don’t Underestimate a Business Plan

 An entrepreneur’s life can be a real roller coaster. Having started a few businesses in my career, I thought it would be useful to highlight some of the hard-won experience I’ve learned throughout the process — the kind of advice I wish I’d known when I started my first, or even second, business.



1. Don’t Underestimate a Business Plan


If you’re not seeking outside funding at the start, it’s tempting to forgo writing out a formal business plan. However, taking the time to write out your business plan, forecasts and marketing strategy is a particularly effective way to hone your vision. All planning should center around two essential questions: How is my business serving a particular need or pain point, and does this represent a major market opportunity?
In addition, don’t overlook the exit strategy at the beginning. Do you want your children to take over the company? Do you want to sell it? It’s critical to think about these questions from the start, as the building blocks of your company (such as legal structure) should vary depending on your preferred final outcome.


2. Don’t Get Stuck in the Past


My husband and I launched our first online legal document filing service in 1997, and then re-entered the market with our second company in 2009. While our previous experience certainly gave us a leg up the second time around, we soon realized the market landscape had changed dramatically since our first company. We had to stop dwelling on previous competitors, customer needs and service expectations and write a brand new playbook.
The marketplace and your business plan are living entities; they’re continually in flux. Whether it’s your first company or fifth in a given market, you’ve got to keep asking: What do we need to do today?


3. Don’t Hire Friends


I form bonds quickly and make fast friends with people around me. While I generally consider this a positive trait, it has created some difficult situations when running a business. At times I have been reluctant to let employees go even though I know it’s not a good fit. If things aren’t working out between an employee and startup, it’s time to put feelings aside and trust that the person will find a better situation elsewhere.
Unfortunately, I’ve also learned that people can let you down, ranging from laziness to fraud. I still believe that faith in people is a good thing. However, blind faith can bring trouble.


4. Don’t Dive in Without a Plan



Just like the business plan, it’s critical to think through any initiative you wish to launch. When you’re in the midst of startup fever, it’s easy to get wrapped up with every new idea. However, be careful of losing focus. Moving forward is critical for any startup, and constantly switching directions can impede this forward progress. With each new idea, step back and think how it fits into your company’s overall goal and vision, then create a plan for how to make it happen.


5. Don’t Fall Into a Discount Trap


At the beginning, too many young companies feel the pressure to heavily discount their prices in order to win business. While customer acquisition is important, attracting customers at unsustainable price levels will just result in a race to the bottom. After all, raising your prices on goods and certain services can be a tricky proposition. I’ve learned that you’re better off in the long run focusing on how to bring more value to customers, rather than simply slashing your prices.


6. Don’t Be Afraid to Fail


Soccer coach Sven-Goran Eriksson once said, “The greatest barrier to success is the fear of failure.” An entrepreneur’s path is uncharted and sometimes a little bumpy. It’s easy to get stressed or downright panicked, but you cannot let fear prevent you from following your dreams. Think of it this way: the sooner you fail, the closer you are to discovering what works.


Conclusion




While you can’t guarantee the outcome of any new venture, you can stack the odds in your favor. These are six lessons I’ve learned over time and countless others are out there. If you’re open, you can gain wisdom from everything you try and gather insight from fellow entrepreneurs. What do you wish you knew when you started your first business?