A Professional Review of Compliance Obligations for Foreign Companies Operating in Nigeria Under the Business Facilitation Act 2023

The Business Facilitation (Miscellaneous Provisions) Act 2023 introduced significant reforms to the legal obligations of foreign companies operating in Nigeria, including changes to permit exemptions, local content requirements, and sector-specific licencing provisions, creating new professional compliance considerations for multinational corporations. This study provides a professional review of the compliance obligations introduced by the Business Facilitation Act 2023 for foreign companies operating across sectors in Nigeria. Data were collected through structured interviews with 20 in-house counsel and compliance managers at multinational corporations operating in Lagos, Abuja, and Port Harcourt, supplemented by analysis of the Act's provisions in relation to CAMA 2020, the NIPC Act, the Expatriate Quota regime, and sector-specific regulations. Results indicate that the Business Facilitation Act streamlines certain permit requirements but does not resolve fundamental conflicts between the Companies and Allied Matters Act local director requirements and the practical availability of qualified Nigerian resident directors for highly technical operations. The Act's impact on local content obligations in the oil and gas sector requires further regulatory interpretation. Compliance with the Act's electronic incorporation and documentation provisions is inconsistent due to CAC system limitations. The study concludes that the Business Facilitation Act is a positive reform initiative requiring coordinated regulatory implementation to realise its objectives. Recommendations include an implementation guidance document from the FMITI, joint CAC-NIPC compliance advisory sessions, and a foreign company compliance self-assessment toolkit.

Keywords: Business Facilitation Act 2023, foreign company compliance, CAMA 2020, local content, Nigeria