Tag Archives: Investment

By: Obinna Onuoha Esq

By: Victory Sarah Opawoye

By: Obinna Onuoha Esq

INTRODUCTION

Exportation is simply the outflow of goods and products from Nigeria into other countries for commercial purposes. The procedures for export is governed by various laws and regulations made by different government agencies responsible for export operations in Nigeria. The legal framework for import and export laws in Nigeria primarily consists of the following key regulations and agencies:

1.     Customs and Excise Management Act (CEMA): The CEMA is the primary legislation governing customs and excise matters in Nigeria. It provides the legal basis for the assessment and collection of customs duties, the control of imports and exports, and the establishment of the Nigeria Customs Service (NCS).

2.     Nigeria Customs Service (NCS): The NCS is the agency responsible for implementing customs laws and regulations in Nigeria. It oversees the collection of customs duties, the classification of goods, and the enforcement of import and export restrictions.

3.     Federal Ministry of Finance (FMF): The FMF plays a supervisory role over the NCS and is responsible for setting tariff rates and import/export policies in coordination with other relevant government agencies.

4.     Central Bank of Nigeria (CBN): The CBN regulates foreign exchange transactions and manages the foreign exchange market in Nigeria. It has a significant impact on import and export activities through its foreign exchange policies.

5.     Export Promotion Councils: Various export promotion councils, such as the Nigerian Export Promotion Council (NEPC), exist to promote and facilitate exports from Nigeria. They provide support and information to Nigerian exporters.

6.     Import Prohibition List and Export Prohibition List: Nigeria maintains lists of goods that are prohibited for import and export. These lists are periodically updated by the government to reflect current policies and national interests.

7.     Trade Agreements: Nigeria is a member of regional economic communities like the Economic Community of West African States (ECOWAS) and has trade agreements with other countries and regions. These agreements can influence import and export regulations and tariffs.

8.     National Agency for Food and Drug Administration and Control (NAFDAC): NAFDAC regulates the importation and exportation of food, drugs, and other related products to ensure they meet safety and quality standards.

9.     Standard Organization of Nigeria (SON): SON is responsible for establishing and enforcing product standards, including those related to imports and exports.

2.0 Documents Required for Exportation

Exporting goods from Nigeria also requires specific documents to ensure compliance with regulations. The essential export documents include:

1. Form NXP (Nigeria Export Proceeds Form): This form is obtained from an authorized dealer bank and serves as evidence of the exporter’s repatriation of export proceeds.
2. Notice to Exporters: This notice is issued for the information of exporters, agencies, and institutions which are involved in the business of export promotion in Nigeria.
3. Packing List and Bill of Lading or Airway Bill: Similar to importation, these documents confirm the contents and ownership of the shipment.
4. SONCAP Certificate: If applicable, the exporter must obtain the Standard Organization of Nigeria (SON) Conformity Assessment Program certificate.

3.0 EXPORT CONTRACT

An export contract is the agreement between an international buyer and seller. An exporter should pay attention to details of the export contract agreed upon by parties. International contracts can be complex. It is therefore recommended that you seek appropriate advice from a Professional.

Important components of an international export contract include:

1. Terms of trade (Incoterms, 2020)
2. Mode of payment (e.g. letter of credit)
3. Mode of delivery (Incoterms 2020)
4. Trade enforcement organs –
5. Dispute Resolution Mechanism (which law apply in case of disputes)

4.0 Procedure for Exportation

To carry on the business of exportation, the exporter is mandated to incorporate a company with the Corporate Affairs Commission (CAC).  Upon incorporation, the exporter is required to register with the Nigerian Export Promotion Council (NEPC) and obtain the exporter’s certificate to be eligible for NEPC benefits. The exporter will also complete the NXP Form with an authorized dealer, which is any reputable bank in Nigeria.

Also, an export contract may be executed between the exporter and the importer which sets out the obligations of the exporter and importer.

It is the responsibility of the exporter of any commodity to ensure an appropriate license or export permit has been obtained from various regulatory agencies before attempting to export any consignment. For instance, an exporter of any solid minerals must obtain an export permit from and pay royalty through the Ministry of Mines and Steel Development (MMSD).

The Agent (Forwarder) plays significant roles in facilitating exportation on behalf of the exporters. By and large, the functions of an Agent during the export process include the followings:

Make arrangements for transportation to Port.

The agent is also expected to make arrangements for inspection by the Nigerian Customs Service, the SSS, Nigerian Drug Law Enforcement Agency, and other authorized government agencies.

Make payment for the prescribed duty where applicable.

Make the necessary payment of the shipping company charges, that is, the Freight.

The agent is also to book space with the shipping agent.

He may also make payment for terminal operators’ chargers.

The shipping companies also play pivotal roles in the export of any goods from Nigeria. The major duties of a shipping company are to accept the cargo at the port of departure from exporter under the bill of lading contract, transport and deliver the same to the consignee.

In closing, it is important to state that that the import license is required to be obtained from the various government agencies such as the Standard Organization of Nigeria, National Agency for Food and Drug Administration, Department of Petroleum Resources, among others before relevant products can be brought into Nigeria. Also, in the case of importation, importers are to be aware that some products are banned from being imported into Nigeria by the Federal Government, which are contained in the Nigerian Customs Service import prohibited list.

It’s important to note that regulations and legal frameworks can change over time, so it’s advisable to consult with legal experts or relevant government agencies for the most up-to-date information and guidance on import and export laws in Nigeria.

References:

1. Overview Of Import And Export Procedures In Nigeria – Marine/ Shipping – Nigeria (mondaq.com) Bottom of Form

Trust relationships are formed when a trustee is obligated based on equity, to hold property,
whether it is real or personal possessions. The essence of this relationship lies in ensuring that
the benefits of the property do not accrue to the trustee, but rather to the beneficiaries or other
designated individuals or entities.
Trust law is a powerful legal framework that plays a crucial role in safeguarding wealth. By
establishing trusts, individuals and businesses can protect their assets, ensure efficient
management and secure financial well-being for future generations.
Within a trust, the trustee assumes a position of confidence and is required to act in good
faith, upholding the interests of the beneficiaries and safeguarding the trust property. It is
crucial that the trustee refrains from engaging in actions that could jeopardize the
beneficiaries’ interests.
Trusts exist in various forms and serve diverse purposes, often reflected in their names.
Contrary to popular belief, trusts are not exclusively for the wealthy, but can also be
established by individuals with limited means for their own benefits or those of others.
In this article we will delve into the significance of trust law and the roles of a trustee by
exploring realistic examples that highlight its personal application and the positive impact.
The Okonjo family, a prominent business dynasty in Nigeria, for decades has built a vast
empire spanning industries such as oil, real estates and telecommunications. However, as the
family grew in size and complexity, concerns arose about the long-term preservation and
succession of their wealth.
The Okonjo family sought the expertise of trust lawyers who crafted a comprehensive trust
structure to safeguard their assets. By placing their wealth within trust, they created a legally
binding arrangement that separated ownership from control. This not only protected their
assets from potential risks and disputes but also ensured continuity and stability.
ROLES OF A TRUSTEE

1. Fiduciary Duties: Trustees owe fiduciary duties to the beneficiaries, which encompass the
   responsibility to manage the trust in the best interests of the beneficiaries. The trustee must
   make decisions that prioritize the beneficiaries’ well-being, as they hold an equitable title to
   the property.
2. Duty to Administer Trust Assets: Trustees have the obligation to administer trust assets in
   accordance with the terms specified in the trust document.
3. Duty of Loyalty: This duty requires trustees to prioritize the interests of the beneficiaries
   over their personal interests when managing the trust property.
4. Duty to Act in Good Faith: Trustees are obligated to act with honesty and integrity in
   fulfilling their responsibilities, while being accountable to the beneficiaries.
5. Duty of Skill and Due Diligence: Trustees must exercise reasonable care, prudence, skill,
   and diligence in the administration of trust assets.
6. Responsibility for Asset Management: Trustees are responsible for managing trust assets
   with the same caution that a reasonable person would exercise in managing their own assets.

TYPES OF TRUSTS

1. Private Trust: These trusts are typically established for family members, relatives, or
   specifically identified individuals. In Knight v. Knight (1840) 49 ER 58, it was established
   that every trust must satisfy three certainties:
   a. Certainty of Intention: The settlor must demonstrate an intent to create a trust, which
   can be expressed in the arrangement’s terms.
   b. Certainty of Subject Matter: The property held under the trust must be identifiable and
   specified.
   c. Certainty of Object: The intended beneficiaries of the trust must be recognizable or
   ascertainable, or the trust will fail.
2. Public or Charitable Trust: These trusts are created for the benefit of the general public,
   with the beneficiaries not being selected based on personal relationships with the settlor. To
   qualify as a charitable trust, it must exhibit an element of public benefit. In RE CROMPTON
   [1945] ch.299, a trust created for the education of specific individuals’ descendants failed the
   test of public benefit.

LEGAL FRAMEWORK

The provisions of a trust arrangement can be enforced in any court of law when disputes
arise.

1. Trustees Act of 1893: This significant legislation provides clarity and guidance to trustees
   regarding the administration of trusts. It outlines trustees’ responsibilities in managing trust
   funds properly and empowers them to invest trust funds, sell assets, and manage the trust
   affairs in the best interests of the beneficiaries. The act allows trustees to delegate certain
   functions to professionals or agents and provides protection by granting them discharge from
   liability when they act in accordance with the act’s provisions and the trust’s terms.
2. Trustee Investment Act: This act provides guidelines for trustees on the investment of
   trust funds, ensuring that they act prudently and in the best interests of the beneficiaries. It
   specifies permissible investments and criteria for their selection, emphasizing the need for
   care, skill, and due diligence in investment decision-making.

BENEFITS OF TRUSTEESHIP

1. Asset Protection: Trusts provide a legal structure that safeguards assets for the intended
   beneficiaries. Placing property in a trust is a common method of asset protection since trusts
   are not entities in their own right and are not subject to legal actions like individuals or
   companies.
2. Estate Planning: Individuals can create trusts to facilitate the orderly transfer of assets to
   their chosen beneficiaries, ensuring smoother succession and reducing potential disputes.
3. Charitable Purposes: Trustees can establish and manage charitable trusts to support
   various philanthropic causes, promoting social development and welfare.
4. Continuity: Trusteeship can span multiple generations, with appointed trustees overseeing
   asset administration and distribution over time, fostering stability and long-term planning.
5. Confidentiality: Trusteeship allows for discreet asset management, preserving individuals’
   privacy and shielding their financial affairs from public scrutiny.
   One of the key benefits of trust law became evident when the Okonjo family faced a sudden
   economic downturn. Due to careful planning and diversification of their assets through trust,
   they were able to weather the storm without jeopardizing their core financial security. The
   trust structure provided them with a resilient foundation to withstand economic challenges
   and emerge stronger.
   Through the appointment of professional trustees, the family was able to tap into specialized
   expertise with experience in wealth management, investment and estate planning.
   A well-structured trust specifies the conditions and gives instructions on the management of
   the trust property. It also ensures that the settlor’s asset can be preserved, protected from
   potential misuse while ensuring it is utilized responsibly.
   Conclusion
   Trusteeship law in Nigeria establishes a framework for the responsible and equitable
   management of trust assets. By adhering to fiduciary duties, trustees ensure the protection
   and benefit of the trust’s beneficiaries. Trusts offer numerous advantages, such as asset
   protection, estate planning facilitation, support for charitable causes, and continuity across
   generations, and confidentiality. The legal framework governing trusteeship provides
   guidance and safeguards for trustees, empowering them to carry out their duties effectively
   and in the best interests of the beneficiaries.
   By harnessing the power of trust law, individuals and businesses in Nigeria cam create a solid
   foundation for long-term financial security and preserve their wealth for future generations.