KEY AMENDMENTS MADE BY THE Business Facilitation (Miscellaneous Provisions) Act 2023

The Act is a legislative intervention by the Presidential Enabling Business Environment Council (PEBEC) which codifies Executive Order 001 (E01), and amends 21 business related laws, to remove bureaucratic bottlenecks typically associated with doing business in the Nigeria business environment.

The Legislations affected by the intervention are:

1. Companies and Allied Matters Act (CAMA)
2. Customs & Excise Management Act
3. Export (Prohibition) Act
4. Financial Reporting Council Act
5. Foreign Exchange (Monitoring and Miscellaneous Provisions) Act
6. Immigration Act
7. Industrial Inspectorate Act
8. Industrial Training Fund Act
9. Investment and Securities Act
10. National Housing Fund Act
11. National Office for Technology Acquisition and Promotion Act
12. National Planning Commission Act
13. Nigerian Customs Service Board Act
14. Nigerian Export Promotion Council Act
15. Nigerian Investment Promotion Commission Act
16. Nigerian Oil and Gas Industry Content Development Act
17. Nigerian Ports Authority Act
18. Patent and Designs Act
19. Pension Reform Act
20. Standard Organisation of Nigeria Act
21. Trademarks Act

THE INTENDED BENEFITS

• It is aimed at Promoting good governance practices through Public Private Partnership (PPPs), and an enhanced regulatory environment for all.
• To Provide harmonization of MDAs’ processes, key performance indicators and consequence management for erring public officials
• To provide Effective tool for speedy amendment of business- related legislative framework.
• To Provide incentives to encourage growth of micro, small and medium enterprises (MSMEs).
• To Promote best global practices, adapted for best fit in Nigeria.
• To Ensure efficiency and transparency in public service delivery with cost, time and procedures for doing business.

KEY HIGHLIGHTS OF THE BUSINESS FACILITATION ACT 2023

Executive Order 001, the first executive order of the then Buhari Administration, issued in 2017, has now been codified by the Act. The legal provisions include:

• Mandatory requirement for publication of licenses, permits, waivers, approvals and other related information by ministries departments and agencies (MDAs).
• Mandatory Publication of Service Level Agreements (SLAs) by MDAs on their websites and mandatory adherence to the stipulated timelines.
• Default approvals have been codified by the BFA. Upon failure of an MDA to communicate the outcome of an application within the stipulated time, the application will be deemed approved.
• Creation of a single interface for customers at the ports and airports to ensure efficiency and eliminate corruption.
• Full Automation of business registration and post registration processes at the corporate affairs commission (CAC).

Some key provisions/changes:

Companies and Allied Matters Act (CAMA) 2020

• Recognition of electronic share certificates and electronic voting at annual general meetings.
• Ease in the procedure for increase in share capital.
• Pre-emptive rights of shareholders- provision of a specific maximum timelines of 21 days within which offer of shares must be accepted by existing shareholders or deem declined.
• The Act reviews the minimum number of independent directors for public companies from three to one-third of the board.

Custom And excise Management Act LFN 2004

• The BFA has Legislated the establishment of a single window platform for trade facilitation in Nigeria.
• The BFA has Reduced the timeline for dispute resolution process in buyers’ appeal to the Nigerian Customs Services where not satisfied with the valuation of imported goods.

Nigerian Ports Authority ACT LFN 2004

• The BFA has Provided for automation of port operations, recognition of single window and removal of unauthorized personnel from the ports.

Exports (Prohibition) Act LRF 2004

• The Minister of Finance now has the responsibility to recommend goods to be prohibited for exportation.

Immigration Act LFN 2004

• The BFA has Provided a legal basis for automation of the Nigeria Immigration Service for international passport processing, business permits and expatriate quotas and other related matters.
• The BFA Stipulates a 48-hour time frame to obtain a visa on arrival and process other ordinary entry visas.

National Housing Fund Act 2011

• The BFA has Expanded the scope of the National Housing Fund to include private sector business owners and employees to enable MSMEs owner’s opt-in to gain access to mortgage finance to build homes.

Standard Organization of Nigeria Act 2015

• The BFA has Reduced the time limit for notifying SON before instituting an action against it from 3 months to 30 days.
• The BFA has also set a Legal obligation for the Director General to make an ex parte application to the court for an order pertaining to actions taken by SON against detrimental or hazardous goods.

It must be noted, that steps taken by the PEBEC in improving the Nigeria Business Environment has been highly impactful without any form of doubt, especially with the Nigeria Immigration Service and the Corporte Affairs Commission.

However, a lot of work needs to be done with the operations at the Trademark, Patent & Design Registry under the ministry of Trade and Investment.

Written By:

Ehis kelly Osagiede Esq

For: Starlion Legal