Contracts/Agreements in respect of foreign technology transfer,
Technical and management services are by law required to be registered
by National Office of Technology Acquisition and Promotion (NOTAP),
particularly where fees payable are remittable in foreign currency. The
applicable rates of fees that may be approved by NOTAP are as follows:
Permissible royalty in respect of technological Know-how, patents
and other industrial property rights Shall range from 1.0% of net
The remittable limits of fees for license or technical service
agreements shall range between 1.0% and maximum of 5.0% of net sales
Permissible Management Service Fee – shall range from 2.0% to 5.0%
of the company’s Net Profit before Tax. Management service fee in
respect of projects where no profit is anticipated during the early
years shall range from 1.0% to 2.0% of net sales during the first 3
to 5 years only.
Remittable Consultancy fees shall be up to a maximum of 20.0% of
project cost and limited to projects of very high technology content
for which indigenous expertise is not available. Service agreements
for such high technology joint ventures shall continue to include a
schedule for the training of Nigerian personnel for an eventual
guarantees/currency deposits as collateral for Naira denominated loans
is prohibited in Nigeria.
and Export Transactions
may import or export goods or services from Nigeria if:
goods or services are not prohibited by law in Nigeria.
Payment for the goods or services is made by means of letter of
credit or any other internationally acceptable mode of payments; and
amount of the payment made or to be made is such as to represent a
fair return for the goods and services.