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


 

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