Introduction

On March 18, 2025, the President of Nigeria, Bola Ahmed Tinubu, in a televised national address, issued a proclamation declaring a state of emergency in Rivers State, an oil-producing region of the country. The President justified this decision by citing intelligence reports indicating a series of alarming incidents of pipeline vandalism perpetrated by militant groups. He further asserted that the crisis was amplified by an ongoing political conflict within the state, particularly between the Governor and the State House of Assembly, which had resulted in a breakdown of governance and law enforcement.[1] The President contended that the failure of the state government to address these security breaches necessitated federal intervention. Consequently, as part of the emergency measures, the President suspended the Governor of Rivers State, his deputy, and all members of the State House of Assembly. However, the judicial arm of the state government was not included in the suspension, leaving the courts operational despite the drastic political restructuring.

The President’s action ignited widespread debate, raising critical questions regarding the extent of his constitutional powers to declare a state of emergency within a federating unit. In particular, concerns were raised about whether this authority extends to the suspension of a duly elected Governor and lawmakers of a State House of Assembly, who derive their mandate from the electorate. In this view, this article seeks to critically examine the constitutional implications of such an executive action, particularly its impact on the governance structure of the state. It will further attempt to interrogate the extent to which a presidential declaration of a state of emergency can justifiably alter the balance of power between the executive and legislative branches at the state level. Additionally, the analysis will explore the legality and constitutional validity of suspending elected state officials within the framework of Nigeria’s federal system.

 

The constitutional framework governing the declaration of a state of emergency in Nigeria

A state of emergency is a situation in which a government is given emergency legal powers to steer the country through a crisis or extraordinary situation to protect its citizens, it follows a declaration made by the government in response to extreme circumstances ranging from natural disaster, armed conflict, civil unrest, or an epidemic.[2]

As a democratically regulated country, Nigeria operates under the supremacy of the 1999 Constitution (as amended), which serves as the fons et origo—the ultimate source of legal authority. The Constitution not only establishes the fundamental principles of governance but also delineates the powers and functions of the three arms of government: the executive, legislature, and judiciary.

Within this constitutional framework, the President of Nigeria is entrusted with specific powers to address grave threats to national security, public order, or the stability of any part of the federation and this includes a declaration of a state of emergency. The legal basis for this authority is found in Section 305 of the 1999 Constitution of the Federal Republic of Nigeria, which outlines the circumstances under which a state of emergency may be declared.

Pursuant to Section 305, the President may issue a Proclamation of a State of Emergency through an instrument published in the Official Gazette of the Government of the Federation.[3] However, this power is not exercised in isolation; it is subject to legislative oversight. Once a state of emergency is declared, the President is mandated to transmit copies of the proclamation to the President of the Senate and the Speaker of the House of Representatives.[4] Upon receipt, both presiding officers must convene their respective legislative chambers to deliberate on the situation and determine whether to approve or reject the proclamation through a formal resolution.[5] This legislature ratifying the power of the president to declare a state of emergency underscores the principle of checks and balances, ensuring that the power is not exercised arbitrarily or beyond constitutional limits.

While the President has the authority to declare an emergency, such power is not absolute and can only be invoked under specific substantive circumstances outlined in Section 305(3) of the 1999 Constitution (as amended). These conditions include:

  1. Existence of War or Imminent Invasion – The President may declare a state of emergency if Nigeria is at war or faces an imminent threat of invasion, armed conflict or involved in a state of war.[6]
  2. Breakdown of Public Order and Safety – If there is an actual or clear and present danger of an actual breakdown of public order or public safety in the federation or any part thereof to the extent that extraordinary measures are necessary to restore security a state of emergency may be declared.[7]
  3. Disaster or Public Danger – A state of emergency may also be proclaimed in response to natural disasters, environmental crises, or other existential threats to the Federation.[8]
  4. Request from a State Government – A state of emergency may be declared if the Governor of a State formally requests federal intervention in response to a crisis beyond the state’s capacity to manage.[9]

President Bola Ahmed Tinubu’s power to declare a state of emergency in Rivers State finds constitutional justification under Section 305(3)(c) and (d) of the 1999 Constitution (as amended), which provide for such a declaration in instances of actual or imminent breakdown of public order and public safety. The constitutional framework provides that a state of emergency be employed as a mechanism to restore stability when normal state structures are unable to contain a crisis. In the extant case, the President cited rising militant activities, particularly the vandalization of oil pipelines, as well as a severe political crisis between the Governor and the State House of Assembly, which he deemed to have contributed to governance paralysis.

Under Section 305(3)(c), a state of emergency may be declared when public order and safety have already collapsed to a degree requiring extraordinary measures to restore normalcy. Given the security threats posed by militant groups, coupled with the lack of an effective state-led response, it can be argued that the situation met this threshold. Additionally, Section 305(3)(d) permits proactive intervention where there is a clear and present danger of a breakdown of public order and safety, suggesting that even if the crisis had not fully escalated, federal action was warranted to prevent further deterioration.

Even if it is acknowledged that the action of the President constitutes a declaration of a state of emergency, it remains legally inchoate until it receives formal approval through a resolution of the National Assembly.[10] Under the provisions of the 1999 Constitution, the President lacks the unilateral authority to declare a state of emergency.

 

Impact of declaration of state of emergency on the executive and legislative governance of a state

Conventionally, when the President of the Federation declares a state of emergency, the executive branch of the state comprising primarily the Governor and Deputy Governor along with the legislative arm, the State House of Assembly, is mandated by the President to suspend its authority and, administrators most often military officers are appointed to oversee the affairs of the state until normalcy is restored.

In 1962, the Late Tafawa Balewa, the then Prime Minister of the country, declared a state of emergency to allay the crisis in the Western Region. The region was placed under emergency rule and Dr. Moses Majekodunmi was appointed as administrator.[11] In 2004, former President Olusegun Obasanjo declared a State of Emergency in Plateau State due to the religious killings that occurred in the state. The then governor, Joshua Dariye alongside the State House of Assembly was suspended and Major General Chris Alli was appointed as administrator. In 2006, former President Olusegun Obasanjo declared a state of emergency to contain the political unrest in Ekiti state as a result of the impeachment of Governor Ayo Fayose, and Brigadier Adetunji Olurin was appointed as administrator. Former president Goodluck Ebele Jonathan on the other hand, opted to depart from this precedent and instead retained all the state functionaries when he declared a state of emergency in Borno, Yobe, and Adamawa states in 2013 and 2014. He also followed the same procedure in 2011 when he declared a state of emergency in some local government areas in Borno and Plateau states.[12]

In the extant case, the current President Bola Ahmed Tinubu declared a state of emergency in Rivers state and he temporarily suspended the Governor of the State, Siminalaya Fubara, his deputy Ngozi Odu and the entire members of the Rivers State House of assembly in an attempt to quell the impending violence rising from the escalated tension between the Governor and the State House of Assembly.

The suspension of the executive and legislative arms of the government of Rivers State has given rise to a significant question: whether the President possesses the constitutional authority to suspend an electoral appointed Governor and State House of Assembly and appoint an administrator while exercising the power to declare a state of emergency.

This question has been argued by various constitutional law experts and judicial authorities have delivered nuanced pronunciations on the issue.

Legal professor, Professor Itse Sagay, has stated in his paper that “The whole tenor of section 11 of the Constitution (which is the section containing all the powers exercisable during an emergency shows that an emergency declaration is intended to be a cooperative endeavor between the federal government and state government, whose organs, governors, House of Assembly and judiciary are fully functioning.”[13] He opines that even during a state of emergency, the state’s institution, such as the Governor, House of Assembly, and Judiciary are expected to remain operational rather than being completely suspended or replaced by federal authority in line with section 11 of the Constitution of the Federal Republic of Nigeria (as amended).

The Nigerian Bar Association (NBA) the body that houses lawyers in the country in a statement released through its President Mazi Afam Osigwe (SAN), laid its concerns on the suspension of the Governor, Deputy Governor and House of Assembly of Rivers State stating that  “The 1999 Constitution does not grant the President the power to suspend or otherwise prevent an elected governor, deputy governor, or members of a state’s legislature from exercising the functions of their offices, under the guise of a state of emergency. Rather, the Constitution provides clear procedures for the removal of a governor and deputy governor as per Section 188. Similarly, the removal of members of the House of Assembly and dissolution of parliament is governed by constitutional provisions and electoral laws, none of which appear to have been adhered to in the present circumstances. These provisions have not been followed in this instance.”[14] The body reiterated that a declaration of emergency does not automatically dissolve or suspend elected state governments, and that the Constitution does not empower the President to unilaterally remove or replace elected officials—such actions amount to an unconstitutional usurpation of power and a fundamental breach of Nigeria’s federal structure.[15]

However, the Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi held a contrary opinion as regards the suspension of the Governor, Deputy Governor and the members of the House of Assembly of Rivers State. Speaking in defense of President Bola Tinubu’s declaration of a state of emergency, Fagbemi claimed that Fubara not only failed to prevent the attacks but had also indirectly encouraged the militants.[16] He further acknowledged that the National Assembly holds the ultimate authority over the suspension and has the power to either ratify or reject it in which the National Assembly approved days after.

Judicial pronunciations have also been made as regards the suspension of elected members of the government. In Attorney General of the Federation v. Attorney General of Abia State & Ors,[17] the Supreme Court of Nigeria held that the removal of elected chairmen and councilors as well as appointment of sole administrators or caretaker committees by State Governors to run local government councils are illegal and unconstitutional.

In the case of Governor of Ekiti State & Ors. v Olubunmo & Ors,[18] where the then Governor of Ekiti State, Governor Kayode Fayemi dissolved the Local Government Councils, removed the democratically elected Council Chairmen and appointed caretaker committees, Justice C.C Nweke criticized the move stating that “Simply put, therefore, the election of such officials into their offices and their tenure are clothed with constitutional force. They cannot, therefore, be abridged without breaching the constitution from which they derive their force”

 

Comparative analysis of the implication of declaration of state of emergency on the executive and legislative arm of the state government: case study of the U.S.A and India

United State of America

The United States has remained under a continuous state of emergency since November 1979, when President Jimmy Carter declared a national emergency in response to the Iran hostage crisis and issued an executive order freezing Iranian government assets. Although Iran freed the hostages on Ronald Reagan’s inauguration day in 1981, Reagan extended Carter’s emergency declaration annually throughout his presidency. Subsequent presidents have not only upheld the 1979 emergency but have also introduced numerous additional emergency declarations of their own.[19]

When Donald Trump began his second term on January 20, 2025, the United States had approximately 40 active emergency declarations. On the day of his inauguration, he issued two additional declarations: a national energy emergency and an emergency at the U.S.-Mexico border.[20]

Notably, in the United States, a presidential declaration of a state of emergency has never resulted in the suspension or removal of a state governor, as the federal system preserves state autonomy even in crises. While the President can mobilize federal resources and impose emergency measures, executive authority over state governance remains with the governor of the state.

India

In India, the President can declare a state of emergency under the Constitution, granting broad powers to the central government. Article 352 allows for a National Emergency in cases of war, external aggression, or armed rebellion.[21] The President’s Rule as commonly called, permits the dismissal of a state government if it fails to function constitutionally, transferring executive power to the Governor and dissolving or suspending the state legislature.[22]

Unlike the United States, where emergency powers do not extend to removing state governors, India’s constitutional framework enables direct federal intervention in state governance, often leading to political controversy.

 

Submission

Under Section 305 of the 1999 Constitution, the President is vested with the constitutional authority to declare a state of emergency in any part of Nigeria when there is a significant breakdown of public order and security. However, this power is not absolute, as it is subject to legislative oversight, requiring approval from the National Assembly to prevent potential executive overreach. The primary objective of this constitutional provision is to preserve national sovereignty and security while ensuring adherence to democratic principles and the rule of law. In the present case, President Tinubu’s declaration of a state of emergency in Rivers State is firmly within his constitutionally conferred powers and, therefore, remains legally valid.

A state of emergency permits the Federal Government to deploy security personnel, impose necessary restrictions, and implement emergency measures aimed at restoring stability. Nevertheless, it does not inherently dissolve or suspend the democratic institutions of the affected state, nor does it authorize the removal of duly elected officials who have not been found culpable of any constitutional violation. From this perspective, the suspension of the Governor, Deputy Governor, and the entire membership of the Rivers State House of Assembly by the President constitutes a clear constitutional overreach and a misapplication of the emergency powers granted to the presidency.

The Governor and Deputy Governor of Rivers State are elected representatives with a legitimate constitutional mandate, and their removal or suspension in the context of a state of emergency runs contrary to the fundamental tenets of federalism and the doctrine of separation of powers. The 1999 Constitution does not provide for the appointment of an interim administrator by the President as a substitute for the Governor. Instead, it explicitly outlines the lawful procedures for the removal of state executives, which must be strictly adhered to in accordance with due process.

Likewise, the suspension or dissolution of the Rivers State House of Assembly undermines the principles of representative democracy and constitutional governance. As an independent arm of government, the legislature plays a crucial role in lawmaking and oversight, even in times of crisis. The invocation of a state of emergency should not serve as a pretext for imposing direct federal control or circumventing established constitutional processes. Such an approach not only erodes democratic institutions but also sets a dangerous precedent for executive overreach in Nigeria’s federal structure.

 

Recommendations

To ensure that the declaration of a state of emergency aligns with constitutional principles and does not undermine Nigeria’s democratic structure, the following recommendations should be considered:

  1. Adherence to Constitutional Provisions and Federalism
    The Federal Government must strictly adhere to the provisions of the 1999 Constitution when exercising emergency powers. While the President has the authority to declare a state of emergency, such measures should be implemented in a manner that respects Nigeria’s federal system and does not usurp the autonomy of state governments.
  2. Non-Suspension of Elected State Officials
    The Governor, Deputy Governor, and House of Assembly should not be suspended or removed under the guise of emergency governance. Instead, their roles should be reinforced to ensure that governance continues effectively within the constitutional framework. Any disciplinary measures against elected officials should follow the legal procedures outlined in the Constitution, such as impeachment or judicial processes.
  3. Collaborative Governance During Emergencies

Rather than resorting to direct federal intervention, the Federal Government should prioritize collaboration with state governments to effectively manage crises. This approach should involve enhancing intergovernmental cooperation, providing security support, and strengthening state institutions to address the underlying causes of instability. In the present situation, President Tinubu can take on the role of mediator between Governor Siminalayi Fubara and the Rivers State House of Assembly to facilitate a resolution and ensure the smooth functioning of the state government.

  1. Judicial Oversight of Emergency Powers
    To prevent potential abuses of emergency powers, the judiciary should play an active role in reviewing and interpreting the constitutionality of executive actions during a state of emergency. Courts should provide a check on any attempt to exceed constitutional limits, ensuring that emergency declarations do not infringe upon democratic governance.
  2. Legislative Involvement and Oversight
    The National Assembly should not only approve a state of emergency but also actively monitor its implementation. This oversight role will ensure that emergency measures remain proportionate, temporary, and necessary to restore order without overstepping constitutional boundaries.

 

Conclusion

The declaration of a state of emergency serves as a constitutionally sanctioned tool for responding to significant threats to public order and national security in Nigeria. While Section 305 of the 1999 Constitution empowers the President to implement emergency measures, the exercise of such authority must remain within the boundaries of constitutional provisions, particularly those that uphold democratic governance, federalism, and the separation of powers.

In this context, although President Tinubu’s proclamation of a state of emergency in Rivers State falls within his constitutional mandate, the suspension of the Governor, Deputy Governor, and the State House of Assembly exceeds the permissible scope of executive authority. The Nigerian Constitution does not confer upon the President the unilateral power to remove or suspend duly elected state officials under the pretext of emergency rule. Such actions compromise the independence of state institutions, undermine democratic norms, and weaken the federal structure of governance.

To uphold constitutional integrity, any federal intervention during a state of emergency should be strictly confined to security and administrative measures essential for restoring order, without interfering with the legitimate governance structures of the affected state. The rule of law must remain paramount in the application of emergency powers, ensuring that constitutional democracy is safeguarded even in times of crisis.

 

By Felicia Ayeomoni for Adeola Oyinlade & Co.

Adeola Oyinlade & Co. is full-service law firm in Nigeria offering legal support to both local and foreign clients in the areas of constitutional and statutory interpretation.

To see our service offerings, please contact us at [email protected] or visit www.adeolaoyinlade.com

 

Mobile: +234 803 826 7683 / +234 802 686 0247/ +234 814 198 3314

[1] https://www.reuters.com/world/africa/nigerian-president-declares-state-emergency-oil-producing-rivers-state-2025-03-18/ Accessed 19th of March, 2025.

[2] https://www.liberties.eu/en/stories/state-of-emergency/44692 Accessed 19th of March, 2025.

[3] Section 305 (1) Constitution of the Federal Republic of Nigeria, 1999 (as amended).

[4] Section 305 (2) Constitution of the Federal Republic of Nigeria, 1999 (as amended).

[5] ibid.

[6] Section 305 (3) (a) & (b) Constitution of the Federal Republic of Nigeria, 1999 (as amended).

[7] Section 305 (3) (c) & (d) Constitution of the Federal Republic of Nigeria, 1999 (as amended).

[8] Section 305 (3) (e) & (f) Constitution of the Federal Republic of Nigeria, 1999 (as amended).

[9] Section 305 (3) (g) Constitution of Federal Republic of Nigeria, 1999 (as amended).

[10] https://edojudiciary.gov.ng/wp-content/uploads/2017/07/LEGALITY-OF-THE-PRESIDENTIAL-DECLARATION-OF-A-STATE-OF-EMERGENCY-IN-SOME-STATES-IN-NIGERIA-AND-ITS-IMPLICATION-ON-STATE-GOVERNMENT-FUNCTIONARIES-BY-BRIGHT-E.-ONIHA.pdf Accessed 19th of March, 2025.

[11] https://pmnewsnigeria.com/2025/03/18/nigerias-history-of-crisis-a-timeline-of-state-of-emergency-declarations/

[12] (n 10)

[13] Itse Sagay, “Nigeria: The Unfinished Federal Project”, delivered at the 8th Justice Idigbe Memorial Lecture (University of Benin) 2008, 50.

[14] https://blog.nigerianbar.org.ng/2025/03/18/state-of-emergency-in-rivers-suspension-or-otherwise-summary-removal-of-a-democratically-elected-governor-and-other-elected-officials-is-unconstitutional/ Accessed 19th of March 2025.

[15] Ibid.

[16] https://tribuneonlineng.com/fubaras-suspension-the-ball-is-now-in-the-court-of-national-assembly-agf/ Accessed 19th of March 2025.

[17] (2024) LPELR-62576 (SC).

[18] (2016) LPELR-48040 (SC)

[19] https://www.history.com/news/national-state-of-emergency-us-presidents accessed 19th of March, 2025.

[20] Ibid.

[21] Constitution of India, section 352

[22] Constitution of India, section 356.

Introduction

The investment and Securities Act (ISA) 2024 was signed into law by President Bola Tinubu in March 2025. The Act repealed the Investment and Securities Act (ISA) 2007. The new Act is enacted to protect investors, ensure fair and efficient markets, and build trust in the financial system. The Investment and Securities Act is the principal law in Nigeria regulating investments and the capital market. Principally, it sets out the rules for public offers of securities, mutual funds, mergers and acquisitions of public companies, and other parts of the capital market.  The Nigerian capital market is experiencing significant growth and progress; hence the government has enacted an up-to-date rule to strengthen investor trust, align our market with global standards and crack down on fraudsters.

 

Major Highlights in The Investment and Securities Act (ISA) 2024

The Act provides for several novel and notable provisions that are capable of transforming and safeguarding Nigeria’s Capital market and attracting the much-needed investment that will culminate in boosting Nigeria’s economy.

 

  1. Management of Systemic Risk

The Securities and Exchange Commission is empowered to request any capital market participant to submit any information or document where the Commission considers it necessary for the purpose of monitoring, mitigating and managing systemic risks in the capital market or where the Commission receives a request from a financial sector regulator. A capital market participant who fails to comply with the request made by the commission is liable to a penalty of not less than Five Million (N5, 000,000) and a further penalty of not less than Ten Thousand Naira (N10, 000) for every day that the infraction continues.

Systemic risk means a situation where a significant market participant or a number of market participants experiences financial distress or there is a major disruption in the transmission, execution or processing of securities transactions.[1]

 

  1. Strengthened Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) now has greater authority to oversee and regulate the market. The Act reaffirms the SEC as the apex regulator and empowers it by improved tools for enforcement, which help tackle violations like insider trading, market manipulation, and fraudulent schemes. With these enhanced powers, the SEC can maintain a more transparent and secure market environment[2]

 

  1. Mandatory use of Legal Entity Identifier (LEI)

The Act introduces the mandatory use of Legal Entity Identifiers (LEIs) by participants in capital market transactions. Companies issuing securities or major investors will need an LEI for their transaction. This stipulation is designed to improve transparency in the conduct of securities transactions by helping regulators trace and verify transactions more easily across the globe, boosting transparency in our market. LEI can be seen as a global Identification card for financial entities[3]

 

  1. Transfer of Unclaimed Dividends into a trust fund

The Act requires that unclaimed dividends be transferred to a trust fund supervised by the Securities and Exchange Commission (SEC). Any unauthorized handling of unclaimed dividends is prohibited and punishable by:  A one-time fine of ₦10 million and an additional daily fine of ₦50,000 until the violation is resolved.[4]

 

  1. Tougher Measures Against Ponzi Schemes and Illegal Investments

The Act expressly prohibits Ponzi schemes and other fraudulent investment schemes while it also prescribing tough penalties, including hefty jail terms for anyone promoting or operating such schemes. The Act stipulates that promoters and operators of any entity engaged in a prohibited scheme commits an offence and is liable on conviction to a penalty of not less than N20,000,000 or imprisonment to a term of 10 years or both.[5]

 

  1. Formal Acknowledgement of Cryptocurrencies and Other Digital Assets

Under the provisions of the new Act, Nigeria legally recognizes virtual/digital assets like cryptocurrencies as securities. By extension, crypto assets and platforms are now under SEC’s regulatory purview. Exchanges or companies dealing in digital assets must register and follow SEC rules just like stockbrokers or other finance companies. This step aims to curb fraudulent activities in the digital space while fostering trust and innovation in blockchain technologies.

 

  1. Upgrading Market Systems and Frameworks

The law also modernizes how our markets operate. It classifies types of stock exchanges into Composite and Non-composite Exchanges. A Composite Exchange is one in which all categories of securities and products can be listed and traded, while a Non-composite Exchange focuses on a singular type of security or product. [6]

 

  1. Strengthening the Investments and Securities Tribunal

The Act strengthens the Investments and Securities Tribunal, the special court for capital market disputes – so it can resolve issues faster and uphold investor rights. The provisions pertains to the Composition of the Tribunal (increased the number of members from 10 – 12 to be appointed by the president as against appointment by the minister in the repealed Act), constitution of the Tribunal, qualification and appointment of the Chief Registrar as well as the jurisdiction of the Tribunal to enhance the ability of the Tribunal to optimally discharge its mandate.[7] 

 

  1. Issuance of Securities by Sub-Nationals and their Agencies

Salient provisions of the Act address existing restrictions in respect of raising of funds from the capital market by Sub-Nationals to allow for greater flexibility in this regard. State and local governments can now raise funds through the capital markets for public projects like infrastructure or healthcare. This reduces their reliance on federal allocations or debt, fostering economic development at sub-national levels while increasing transparency in fund utilization.[8]

 

  1. Modification of general Insolvency law

The act established insolvency procedures separate from those listed in CAMA 2020 as a result of the peculiarity of the structure, operations and transactions of financial market infrastructure and the identified participants.[9]

 

  1. Broadened Definition of Securities

The Act expands the definition of securities to include Virtual/digital asset and Investment contracts. This update brings the following entities under the regulatory oversight of the Securities and Exchange Commission (SEC): Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs) and Digital Asset Exchanges[10]

 

The effects of the new regulation on the capital market, stakeholders and participants

The new Investments and Securities Act (ISA) 2025 is a game-changer for Nigeria’s capital market, bringing about significant improvements in regulation, innovation, investor protection, and global alignment.

 

  1. A more confident capital market

The ISA 2025 expands the Securities and Exchange Commission’s (SEC) powers, enabling more decisive enforcement of rules and greater oversight of market players. This aligns Nigeria with international best practices, making the market safer and more attractive to local and foreign investors.

 

  1. Supporting technological advancement

The Act recognizes digital assets, like cryptocurrencies, as part of the regulated market, providing oversight and managing risk. This move is expected to spur growth in fintech and digital finance, while protecting investors.

 

  1. Improved investment security

The ISA 2025 cracks down on Ponzi schemes and illegal investments, providing a clear legal framework to shut them down and punish culprits. This enhances investor protection, deter fraudsters, and provides more peace of mind for investors.

 

  1. Harmonization with international standard

The Act aligns Nigeria’s capital market with global standards, adopting tools like the Legal Entity Identifier (LEI) for transparency. This sends a message that Nigeria’s market is “open for business” and trustworthy, attracting foreign investment and benefiting local investors.

 

Conclusion

The Investment and Securities Act 2024 is a step towards achieving greater stability, transparency, and investor confidence in the Nigeria’s Capital Market.  By empowering the Securities and Exchange Commission, embracing the evolving landscape of digital assets and addressing systemic risks, the Act positions Nigeria to attract both domestic and international investment. The stringent measures against fraudulent schemes such as Ponzi schemes, coupled with the modernization of market systems and the strengthening of the Investments and Securities Tribunal, create a safer environment for all market participants to transact. In addition, the Act’s alignment with global standards, through initiatives like the mandatory use of Legal Entity Identifiers, signals Nigeria’s commitment to fostering a trustworthy and competitive financial ecosystem.  Ultimately, the ISA 2024 is more than just a legislative update; it is a strategic investment in the future of Nigeria’s economy, paving the way for sustainable growth and prosperity by cultivating a robust, reliable, and forward-thinking capital market.

 

By Olamilekan C. Fayemi for Adeola Oyinlade & Co.

Adeola Oyinlade & Co. is top corporate and commercial law firm in Nigeria offering legal support to both local and foreign clients in the areas of corporate, business restructuring and capital markets.

To see our service offerings, please contact us at [email protected] or visit www.adeolaoyinlade.com

 

Mobile: +234 803 826 7683 / +234 802 686 0247/ +234 814 198 3314

[1] Section 82 of the Investment and Securities Act (ISA) 2024

[2] Section 3 of the Investment and Securities Act (ISA) 2024

[3] Section 123 of the Investment and Securities Act (ISA) 2024

[4] Section 93 of the Investment and Securities Act (ISA) 2024

[5] Section 195 of the Investment and Securities Act (ISA) 2024

[6] Section 27 of the investment and Securities Act (ISA) 2024

[7] Section 309 of the Investment and Securities Act (ISA) 2024

[8] Section 260 of the Investment and Securities  Act (ISA) 2024

[9] Section 45 of the Investment and Securities Act (ISA) 2024

[10] Interpretation section of the Investment and Securities Act (ISA) 2024

In Nigeria, the Companies and Allied Matters Act 2020 (CAMA) governs the appointment and removal of company directors.

Shareholders wishing to remove a director are to issue a special notice (28 days before the general meeting) of the resolution seeking to remove the concerned director, and or to appoint some other director in the stead of the director so to be removed.

In this article, we respond to some important questions on the legal procedures for the removal and appointment of company directors under the Nigerian law.

 

Under what circumstances can a director be removed in Nigeria?

A director in Nigeria can be removed under the following circumstances:

  • By Ordinary Resolution: Shareholders can remove a director through an ordinary resolution passed at a general meeting, regardless of the director’s term of office.
  • Breach of Duty: A director may be removed for failure to perform their duties, such as not attending meetings or violating fiduciary duties.
  • Incapacity or Illness: If a director is incapacitated or mentally unfit to perform their duties.
  • Bankruptcy: If the director becomes bankrupt or enters into a voluntary arrangement with creditors.
  • Failure to Comply with Legal Requirements: Directors who fail to comply with Nigerian corporate laws, including those set out in the Companies and Allied Matters Act (CAMA), may face removal

 

What is the process for removing a director in Nigeria?

The process for removing a director in Nigeria generally involves

  1. Notice of the Meeting: A notice must be given to the company and all shareholders that a resolution for the removal of the director will be proposed at a general meeting.
  2. Passing a Resolution: An Ordinary resolution must be passed at the general meeting by a majority of shareholders, with a minimum of 51% voting in favour of removal.
  3. Opportunity for Defense: The director facing removal must be given an opportunity to defend themselves at the meeting.
  4. Filing with the Corporate Affairs Commission (CAC): Once the resolution is passed, the company must notify the Corporate Affairs Commission (CAC) of the director’s removal.

 

Can a director be removed without their consent in Nigeria?

Yes, a director can be removed without his or her consent in Nigeria, as long as the removal is done in accordance with the provisions of the Companies and Allied Matters Act (CAMA) and the company’s Articles of Association. The director’s consent is not required to pass a resolution for their removal, although they must be given the opportunity to present their case before the shareholders.

 

Are there any protections for directors against unfair removal in Nigeria?

Yes, there are some protections for directors against unfair removal:

  • Right to be Heard: Directors must be given the opportunity to defend themselves at the general meeting before any decision is made.
  • Appeals: If the director believes the removal is unjust, they can challenge the decision in court, especially if there are claims of misapplication of the law or violation of the company’s Articles of Association.
  • Legal Framework: Removal must comply with both the company’s Articles of Association and the provisions of the Companies and Allied Matters Act (CAMA).

 

Can a director who has been removed claim severance benefits in Nigeria?

A removed director may be entitled to severance benefits only if it is stipulated in their contract of employment or in the company’s Articles of Association. In the absence of such terms, the director is typically not entitled to severance unless otherwise agreed or provided by law.

 

What happens to the director’s position after they are removed?

After a director is removed from office, the position becomes vacant, and the company may appoint a new director to replace the vacant position. The appointment of a new director must follow the company’s procedure, which may involve shareholder approval or board nomination, depending on the company’s Articles of Association.

 

Is the process for the removal of a director from a private company different from a public company in Nigeria?

The basic process for removing a director is similar in both private and public companies, but there may be additional procedural requirements for public companies, such as compliance with the rules set by the Nigerian Stock Exchange (NSE) and disclosure requirements. Public companies may also face more scrutiny and regulations related to the removal of directors.

 

Can a director be removed for personal reasons, like conflict with shareholders, in Nigeria?

A director can be removed for personal reasons, including conflicts with shareholders, but such conflicts must be handled within the framework of the company’s governance structure and CAMA. Personal conflicts alone may not be sufficient for removal unless they affect the director’s ability to fulfil their duties or violate their legal obligations to the company.

 

Can a director who is also a shareholder be removed from their position as a director in Nigeria?

Yes, a director who is also a shareholder can be removed from their position as a director. The process for removing a director is governed by the Companies and Allied Matters Act (CAMA), which allows shareholders to pass a resolution to remove a director regardless of their status as a shareholder.

 

Can the director who is also a shareholder be removed from their position as a shareholder in Nigeria?

No, the director cannot be removed from their position as a shareholder simply because they have been removed from their position as a director. Shareholders are owners of the company, and their ownership is not contingent on their role as a director. Removing a shareholder would require a separate process, such as selling or transferring their shares or invoking a clause in the company’s Articles of Association (if any) that allows for the forfeiture or compulsory sale of shares under certain conditions.

Note: The content of this article is anticipated to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance.

 

By Ayoola Hassan for Adeola Oyinlade & Co.

 

Adeola Oyinlade & Co. is a leading full-service law firm in Nigeria offering legal support to both local and foreign clients in the area of corporate law.

To see our service offerings, please contact us at [email protected] or visit www.adeolaoyinlade.com

Mobile: +234 803 826 7683 / +234 802 686 0247/ +234 814 198 3314

Introduction

Patent ownership affords the holder the exclusive right to govern the creation, use, import, and sale of their invention. However, patent eligibility is subject to certain criteria, and not all inventions qualify. Registering a patent in Nigeria involves several steps and requirements.

This article aims to discuss the intricacies of patent registration in Nigeria, covering the legislative framework and other essential aspects

 

What is Patent?

Patent is a government-granted exclusive right awarded to an inventor, allowing them to manufacture, utilize, sell, or license their invention to the public for a specified period. In return, the inventor must publicly disclose the invention’s details after the protection period expires

 

What law governs Patent registration in Nigeria?

The Regulatory law is the Patents and Designs Act[i], which sets out the rules and criteria for patent protection, patentability, and other relevant aspects

 

Rights and protection conferred by registration of a patent or design
By virtue of section 19(1)[ii], registration of an industrial design confers upon the registered owner the right to preclude any other person from doing any of the following acts:

(a)reproducing the design in the manufacture of a product;

(b)importing, selling or utilizing for commercial purposes a product reproducing the design;

(c)holding such a product for the purpose of selling it or utilizing it for commercial purposes[iii].

 

Requirements for Patent Registration

To register a patent in Nigeria, your invention must meet certain criteria, including:

– Novelty: Your invention must be new and not already known or used in any part of the world before the application for a patent is made.

– Inventive Step: Your invention must not be obvious to a person skilled in the art.

– Industrial Applicability: Your invention must be capable of being deployed in an industry.

Additionally, you’ll need to provide the following documents

– Application form: A petition or request for a patent with the applicant’s full name and address.

– Power of Attorney: A signed power of attorney authorization of agent if the application is made by an agent.

– Specification: A specification including a claim or claims in duplicate.

– Drawings: Plans and drawings if any in duplicate.

– Declaration: A declaration by the true inventor where applicable.

 

Procedure for Patent Registration

Here’s an overview of the patent registration process in Nigeria:

The Commercial Law Department of the Federal Ministry of Industry, Trade and Investment oversees the registration of trademarks, patents, and designs in Nigeria. The type of patent sought (product or process) does not affect the registration process.

The Patent Registration Process

  1. Conduct a search: Before filing a patent application, conduct a search at the Nigerian Patent and Trademark Registry or with a patent agent’s assistance to ensure the invention is new and non-obvious.

 

  1. Prepare the application: Submit the required documents, including:
  2. A petition or request for a patent (Form 1A)
  3. A signed power of attorney authorization (Form 2)
  4. A specification, including claims (Form 3)
  5. Plans and drawings (if applicable)
  6. A declaration by the true inventor (if applicable)
  7. File the application: Submit the application electronically or in hard copy at the Nigerian Patent and Trademark Registry, accompanied by the filing fee.

 

  1. Examination: The Registrar examines the application to ensure it meets patentability requirements and formal compliance.

 

  1. Grant of Patent: If no opposition is filed within two months of publication, the patent is granted, and a certificate of registration is issued.

 

Duration and Validity of Patent

The entire patent registration process typically can take around 3 months from filing to granting of a patent in Nigeria.

Patents have a validity period of twenty years, commencing from the initial application date. To maintain patent validity, annual fees must be paid within the stipulated timeframe. A six-month grace period is allowed, after which a surcharge applies.

 

Conclusion

Registering a patent secures the patent holder’s exclusive right to prevent others from manufacturing, using, or selling their invention for commercial gain. To ensure a smooth registration process and compliance with legal requirements, it’s recommended to consult a patent agent or attorney for expert guidance.

Note: The content of this article is anticipated to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance.

 

By Deborah Ogedengbe and Adeola Austin Oyinlade for Adeola Oyinlade & Co.

 

Adeola Oyinlade & Co. is a leading full-service law firm in Nigeria offering legal support to both local and foreign clients with expertise in Intellectual Property related matters including; Patent, Trademark, Industrial Design, Copyrights and product registration in Nigeria.

To see our service offerings, please contact us at [email protected] or visit www.adeolaoyinlade.com

Telephone: +234 803 826 7683 / +234 802 686 0247/ +234 814 198 3314

 

 

[i] CAP P2 LFN 2004

[ii] Patents and Designs Act

[iii] Densy Ind. Ltd v Uzokwe (1998) 9 NWLR (Pt. 567) 569 (Pg 580 Paras C-D)

The adoption process in Nigeria involves a series of steps, including counseling, document submission, and court application. The Child Rights Act governs the process and outlines the requirements for adoption. The adoption process in Nigeria varies from state to state, and this is because the matter is within the list which states in Nigeria can legislate upon.

In this article, we respond to important questions on adoption process and requirements in Nigeria.

 

What laws govern adoption in Nigeria?

The key laws governing adoption in Nigeria include:

  1. Child Rights Act, 2003 (applicable in the Federal Capital Territory and states that have domesticated it).
  2. Adoption Laws of Various States (Each state has its own specific adoption laws).
  3. Matrimonial Causes Act (relevant for inter-country adoption).
  4. Customary and Islamic Laws (where applicable in some regions).

 

Who is eligible to adopt a child in Nigeria?

The eligibility criteria for adoption vary by state but generally include:

  1. The adopter must be at least 25 years old and at least 21 years older than the child.
  2. The adopter must be of sound mind and financially capable of providing for the child.
  3. Married couples must adopt jointly, with both spouses giving consent.
  4. Single persons can adopt, but some states restrict adoption by single men.
  5. The adopter must have no criminal record, especially for offenses against children.
  6. Foreigners may adopt only if they have resided in Nigeria for at least a year (varies by state).

 

Who can be adopted in Nigeria?

A child eligible for adoption must:

  1. Be below 18 years old.
  2. Be orphaned, abandoned, or relinquished by their biological parents.
  3. Be declared adoptable by the court or child welfare authority.
  4. Have no legal claim or opposition from biological parents (if alive).

 

What is the process for adopting a child in Nigeria?

The adoption process typically involves these steps:

  1. Application: The prospective adoptive parent(s) submit a formal application to the Ministry of Women Affairs or relevant child welfare department.
  2. Screening & Home Study: The authorities conduct background checks, home visits, and psychological evaluations to assess suitability.
  3. Pre-Adoption Foster Care: The child may be placed in the care of the adoptive parents for a probationary period (usually 3 months to 1 year, depending on the state).
  4. Court Petition: The prospective parents file an adoption petition in court, seeking legal approval.
  5. Court Hearing & Order: The court reviews report from the welfare agency, ensures legal compliance, and grants the Adoption Order if satisfied.
  6. Registration of Adoption: After the court order, the adoption is registered with the appropriate government agency.
  7. Issuance of New Birth Certificate: A new birth certificate may be issued listing the adoptive parents as the legal parents.

 

What documents are required for adoption in Nigeria?

Required documents typically include:

  1. Formal adoption application
  2. Birth certificate or affidavit of age declaration
  3. Marriage certificate (for married couples)
  4. Medical certificates proving physical and mental fitness
  5. Police clearance certificate (to verify no criminal record)
  6. Financial statement or evidence of stable income
  7. Home study report from a social welfare officer
  8. Consent document (if applicable, from the child’s biological parents or guardian

 

Can foreigners adopt a Nigerian child?

Yes, but they must meet additional requirements, including:

  1. Residency in Nigeria for at least 12 months before the adoption.
  2. Approval from the Ministry of Women Affairs.
  3. Compliance with international adoption treaties (e.g., Hague Adoption Convention, if applicable).

Some states have stricter rules or may prohibit inter-country adoption.

 

What is the role of the court in the adoption process?

The court plays a crucial role in:

  1. Reviewing adoption applications.
  2. Ensuring compliance with adoption laws.
  3. Verifying that the adoption is in the best interest of the child.
  4. Issuing the Adoption Order, which finalizes the process.

 

What are the rights of adopted children in Nigeria?

Adopted children have the same rights as biological children, including:

  1. Right to inherit from adoptive parents.
  2. Right to education, healthcare, and welfare.
  3. Right to be protected from abuse and neglect.
  4. Right to identity and citizenship (where applicable).

 

What are the costs associated with adoption in Nigeria?

Adoption costs vary but may include:

  1. Application fees (set by state adoption agencies).
  2. Legal fees for court proceedings.
  3. Medical and home study assessments.
  4. Processing fees for documentation and registration.
  5. Travel expenses (for inter-state or international adoptions).

 

Conclusion

Adoption in Nigeria is a legally structured but sometimes complex process, requiring compliance with federal and state laws. Prospective adoptive parents must ensure they meet all legal and procedural requirements while prioritizing the best interests of the child.

Adoption is a beautiful process that allows for the creation of a family. It is however important that the expertise of a family law expert is sought before commencing the process particularly on how to navigate the complex process.

Note: The content of this article is anticipated to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance.

 

By Deborah Ogedengbe for Adeola Oyinlade & Co.

 

Adeola Oyinlade & Co. is a leading full-service law firm in Nigeria offering legal support to both local and foreign clients in the area of family law.

To see our service offerings, please contact us at [email protected] or visit www.adeolaoyinlade.com

Mobile: +234 803 826 7683 / +234 802 686 0247/ +234 814 198 3314

Surrogacy is an increasingly sought-after option for couples struggling with infertility, but its legal status in Nigeria remains unclear due to a lack of comprehensive federal legislation.

In this article, we respond to some important questions on the legality of surrogacy practice in Nigeria.

 

What is surrogacy?

Surrogacy is an arrangement where a woman (the surrogate mother) carries and gives birth to a child on behalf of another person or couple (the intended parents). It can be:

  1. Traditional Surrogacy – where the surrogate provides her own egg and is artificially inseminated.
  2. Gestational Surrogacy – where the surrogate carries an embryo created using the egg and sperm of the intended parents or donors, with no genetic link to the surrogate.

 

Is surrogacy legal in Nigeria?

There is no specific federal law regulating surrogacy in Nigeria. However, some states, like Lagos, have guidelines allowing surrogacy under the Lagos State Assisted Reproductive Technology (ART) Law, 2021.

  1. The Child Rights Act, 2003 governs child welfare but does not explicitly address surrogacy.
  2. Surrogacy agreements are often enforced as private contracts between parties, making them subject to contract law.

 

Is surrogacy recognized by Nigerian law?

While surrogacy is not explicitly illegal, it is not expressly recognized under Nigerian law either. In the absence of clear legislation, courts often treat surrogacy agreements as contractual arrangements, meaning enforceability depends on the terms of the agreement and general contract law principles.

Courts may refuse to recognize the agreement if it contradicts public policy or the surrogate refuses to relinquish the child.

Legal challenges can arise if disputes occur between the surrogate and the intended parents.

 

Who can be a surrogate in Nigeria?

Although there are no clear federal laws, common practices require that a surrogate must:

  1. Be of legal age (typically 21 years and above).
  2. Have given birth before (to reduce medical and emotional risks).
  3. Pass medical and psychological screenings.
  4. Sign a legally binding contract outlining rights, responsibilities, and compensation (if applicable).

 

What role do fertility clinics play in surrogacy in Nigeria?

Fertility clinics facilitate surrogacy arrangements by:

  1. Conducting medical and psychological evaluations of surrogates and intended parents.
  2. Providing in vitro fertilization (IVF) and embryo transfer services.
  3. Offering counseling to both surrogates and intended parents.

However, due to lack of government oversight, some clinics may engage in unethical practices, making legal due diligence essential.

 

What steps should intended parents take before entering a surrogacy agreement in Nigeria?

To minimize legal risks, intended parents should:

  1. Consult an experienced lawyer – To draft a legally sound surrogacy contract.
  2. Use reputable fertility clinics – To ensure ethical and medical compliance.
  3. Get a court order – To secure legal parenthood after birth.
  4. Prepare for adoption (if necessary) – In case the court requires a formal adoption process.
  5. Ensure all parties undergo medical and psychological screenings.

 

Can foreigners engage in surrogacy in Nigeria?

Foreigners can access surrogacy in Nigeria, but there are no clear legal protections for international intended parents. Immigration and nationality laws may complicate the child’s status. Some clinics facilitate cross-border surrogacy arrangements, but due diligence is required.

 

Conclusion

Surrogacy in Nigeria operates in a legal grey area, with no comprehensive federal legislation governing the process. While some states like Lagos have guidelines, there is no national legal framework to protect intended parents, surrogates, or the child. Couples considering surrogacy must take legal precautions, including drafting contracts, seeking court orders, and consulting fertility experts.

Note: The content of this article is anticipated to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance.

By Deborah Ogedengbe for Adeola Oyinlade & Co.

 

Adeola Oyinlade & Co. is a leading full-service law firm in Nigeria offering legal support to both local and foreign clients in the area of family law.

To see our service offerings, please contact us at [email protected] or visit www.adeolaoyinlade.com

Mobile: +234 803 826 7683 / +234 802 686 0247/ +234 814 198 3314

Introduction

Technology transfer agreements are vital in Nigeria, driving innovation and economic growth by facilitating the exchange of expertise, skills, and technology between domestic companies and international partners. This exchange is critical for addressing technological disparities across various sectors.

This Article helps to understand the requirements, registration process, costs and prevailing trends in these agreement

 

The Regulatory Law

The Nigerian Copyright Act and the Patents and Designs Act provide a framework for protecting intellectual property, but companies must ensure that their agreements comply with these laws to avoid potential disputes.

 

What are the benefits of TTA

Technology Transfer Agreements (TTAs) yield significant advantages for Nigerian businesses and the national economy, including:

  1. Access to advanced technology and specialized expertise.
  2. Improved local innovation and industrial capacity.
  3. Fostered international collaborations and partnerships.
  4. Creation of employment opportunities and skill development.
  5. Economic diversification and sustainable growth.

 

The Registration Process

In Nigeria, the main government agency responsible for overseeing and registering technology transfer agreements is the National Office for Technology Acquisition and Promotion (NOTAP).

The registration process for technology transfer agreements in Nigeria involves several key steps:

  1. Preparation of the Agreement: Both parties need to draft a comprehensive technology transfer agreement that outlines the terms and conditions, including the scope of technology being transferred, payment terms, and duration of the agreement.
  2. Submission to NOTAP: Once the agreement is prepared, it must be submitted to the National Office for Technology Acquisition and Promotion (NOTAP) for registration. This submission should include the signed agreement and any required documentation, such as identification of the parties involved and proof of the technology’s origin.
  3. Review by NOTAP: NOTAP will review the submitted documents to ensure compliance with local laws and regulations. This review process may involve assessing the agreement’s alignment with national interests and technological development goals.
  4. Payment of Fees: There may be registration fees associated with the process. The parties involved will need to pay these fees as part of the registration.
  5. Issuance of Registration Certificate: If the agreement meets all requirements, NOTAP will issue a registration certificate. This certificate serves as proof that the technology transfer agreement has been officially recognized by the government.
  6. Compliance Monitoring: After registration, both parties are expected to adhere to the terms of the agreement. NOTAP may conduct periodic checks to ensure compliance and address any issues that may arise.

This process helps protect the interests of both the technology provider and the recipient while promoting transparency and accountability in technology transfer activities in Nigeria.

Online Registration Process

The online registration process for technology transfer agreements in Nigeria typically involves the following steps:

  1. Visit the NOTAP Website: Start by going to the official website of the National Office for Technology Acquisition and Promotion (NOTAP).
  2. Create an Account: If you’re a first-time user, you may need to create an account on the platform. This usually requires providing some basic information.
  3. Fill Out the Application Form: Once logged in, locate the section for technology transfer agreements and fill out the online application form. Ensure that all required details are accurately provided.
  4. Upload Necessary Documents: You will need to upload the signed technology transfer agreement and any other supporting documents, such as identification and proof of technology.
  5. Pay Registration Fees: The platform will guide you through the payment process for the registration fees. Make sure to complete this step to proceed.
  6. Submit the Application: After filling out the form and uploading the documents, review everything to ensure accuracy, then submit your application.
  7. Receive Confirmation: After submission, you should receive a confirmation email or notification regarding the status of your application.
  8. Issuance of Certificate: If your application is approved, NOTAP will issue a registration certificate, which you can usually download from your account.

This online process streamlines registration and makes it easier for parties to manage their agreements.

 

During the review of technology transfer agreements, NOTAP typically looks for several common issues, including:

  1. Compliance with Local Laws: NOTAP checks if the agreement adheres to Nigerian laws and regulations governing technology transfer and intellectual property.
  2. Clarity of Terms: The agreement should clearly define the rights and obligations of both parties, including the scope of technology being transferred, payment terms, and duration.
  3. National Interest: NOTAP assesses whether the technology transfer aligns with Nigeria’s national interests and development goals, ensuring that it contributes positively to the local economy.
  4. Technology Verification: They may verify the authenticity and origin of the technology being transferred to ensure it is legitimate and properly documented.
  5. Protection of Intellectual Property: The agreement should include provisions that protect the intellectual property rights of the technology provider and ensure that these rights are not infringed upon.
  6. Potential for Local Development: NOTAP looks for agreements that have the potential to promote local capacity building, knowledge transfer, and technological advancement within Nigeria.

By addressing these issues, NOTAP aims to ensure that technology transfer agreements are beneficial and compliant with the country’s regulations.

 

Agreement Patterns

NOTAP (National Office for Technology Acquisition and Promotion) in Nigeria recognizes several agreement patterns for technology transfer. Here are the main ones:

  1. Licensing Agreement: This allows one party to use the technology of another party under specified conditions, often involving royalties.
  2. Joint Venture Agreement: Parties collaborate to create a new entity that utilizes the transferred technology, sharing both risks and profits.
  3. Franchise Agreement: This involves granting rights to use a business model and technology, typically in exchange for fees or royalties.
  4. Research and Development Agreement: This pattern focuses on collaborative efforts to develop new technologies or improve existing ones, with shared ownership of results.
  5. Technical Assistance Agreement: One party provides technical support, training, or consultancy to another, facilitating the effective use of the technology.

 

Costs for Technology Transfer Agreements by NOTAP

The cost for a Technology Transfer Agreement (TTA) registration with the National Office for Technology Acquisition and Promotion (NOTAP) in Nigeria varies based on the contract value. Here’s a breakdown of the registration fees:

– Under ₦5 million: ₦100,000

– ₦5 million – ₦10 million: ₦150,000

– ₦10 million – ₦20 million: ₦250,000

– ₦20 million – ₦50 million: ₦500,000

– ₦50 million – ₦100 million: ₦1,000,000

– ₦100 million – ₦250 million: ₦1,250,000

– ₦250 million – ₦500 million: ₦1,500,000

– ₦500 million – ₦1 billion: ₦1,750,000

– ₦1 billion – ₦1.5 billion: ₦2,000,000

– ₦1.5 billion – ₦2 billion: ₦2,500,000

– ₦2 billion – ₦2.5 billion: ₦3,000,000

– ₦2.5 billion – ₦5 billion: ₦5,000,000

– ₦5 billion – ₦10 billion: ₦10,000,000

– Above ₦10 billion: ₦20,000,000

Additionally, there’s a presentation fee of ₦50,000, and a penalty fee of ₦100,000 for late submission

 

Conclusion

Successfully navigating Technology Transfer Agreements (TTAs) demands careful planning, regulatory compliance, and a well-defined business strategy. By leveraging TTAs, Nigerian businesses can tap into international expertise, accelerate technological progress, and stimulate industrial development.

Note: The content of this article is anticipated to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance.

By Deborah Ogedengbe for Adeola Oyinlade & Co.

 

Adeola Oyinlade & Co. is a leading Corporate and Commercial full-service law firm in Nigeria offering advisory services to both local and foreign clients in the Intellectual Property, Fintech and Technology  sectors in Nigeria.

To see our service offerings, please contact us at [email protected] or visit www.adeolaoyinlade.com

Mobile: +234 803 826 7683 / +234 802 686 0247/ +234 814 198 3314

Introduction

Recognition and enforcement of foreign judgments refer to the legal process of acknowledging and enforcing court decisions made in a different country. This aspect of the legal system is essential for maintaining the integrity of international law and ensuring justice is upheld across borders.

When it comes to enforcement of foreign judgments, it is crucial to understand the legal requirements and procedures involved. Typically, this process involves submitting the foreign judgment to a local court and demonstrating that it meets certain criteria for recognition and enforcement. This may include proving that the judgment was issued by a court with jurisdiction and that the parties involved were given a fair opportunity to present their case.

In cases where a foreign judgment is recognized and enforced, it can have significant implications for the parties involved. It can provide relief to plaintiffs seeking to collect on a judgment or uphold their rights, while also holding defendants accountable for their actions regardless of where they took place.

The process of recognising and enforcing foreign judgments in Nigeria is a serious aspect of the legal system that ensures the enforcement of rights and obligations arising from international transactions. This article provides an overview of the procedures and regulations governing the recognition and enforcement of foreign judgments in Nigeria.

 

Legal regime for the recognition and enforcement of foreign judgments

Nigeria, as a member of various international conventions, including the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, has established a legal framework for the recognition and enforcement of foreign judgments. The country has also signed bilateral agreements with several countries to facilitate the recognition and enforcement of judgments.

In Nigeria, the recognition and enforcement of foreign judgments are governed by the Reciprocal Enforcement of Judgments Ordinance (Cap 175 LFN 1958), the Foreign Judgment (Reciprocal Enforcement) Act (Cap F34 LFN 2004), and common law.

  1. The Reciprocal Enforcement of Judgments Ordinance: This covers judgments issued by courts in the UK, Ghana, Sierra Leone, Gambia, Barbados, Bermuda, British Guiana, Gibraltar, Grenada, Jamaica, the Leeward Islands, Newfoundland, New South Wales, St Lucia, St Vincent, Trinidad and Tobago, and Victoria.

 

  1. The Foreign Judgments (Reciprocal Enforcement) Act: This Act outlines the procedures for enforcing judgments from designated countries. It provides a clear and transparent process for parties seeking to enforce foreign judgments in Nigeria, ensuring that the rights of all parties involved are protected.

 

  1. The common law: Under common law, a foreign judgment is considered a debt and creates a new cause of action for the creditor. This view remains valid in Nigeria until it is repealed or modified by statute.

 

  1. Other applicable legislations: The Sheriffs and Civil Processes Act, as well as the civil procedure rules of courts, where the registration and enforcement are sought are also applicable,

 

Enforcement of foreign judgment under the Reciprocal Enforcement of Judgments Ordinance

The Ordinance applies to judgments obtained in the following Commonwealth countries/territories: Sierra Leone, Ghana, Gambia, Newfoundland, New South Wales, Victoria, Barbados, Bermuda, British Guiana, Gibraltar, Grenada, Jamaica, the Leeward Islands, St Lucia, St Vincent, and Trinidad and Tobago.

The registration process under the Ordinance must be done within 12 months of the judgment date, or a longer term as permitted by the court.

A judgment from another nation may only be recognized and upheld in Nigeria in accordance with Section 3 of the Ordinance if:

  • It is a decision rendered by a High Court in England or Ireland, the Court of Session in Scotland, or a superior court of record in the area of Her Majesty’s domain to which the Ordinance has been declared applicable by proclamation under Section 5 of the Ordinance (i.e., the Commonwealth countries)

 

Under Section 3 of the Act, a judgment of a foreign country shall only be recognised and enforced in Nigeria if:

  • it is a judgment of a superior court of record;
  • it is a final and conclusive judgment as between the parties;
  • the judgment was delivered by a court of competent jurisdiction; and
  • the judgment is for a definite sum of money, but not for money recoverable as tax, a fine or another penalty

 

Foreign Judgments that cannot be enforced under the ordinance

According to the Ordinance, a foreign judgment cannot be registered or enforced if:

  • The original court lacked jurisdiction, or
  • If the judgment debtor did not reside or conduct business within the original court’s jurisdiction; or
  • The judgment debtor did not live, conduct business, or submit to the jurisdiction of the original court, meaning that the judgment debtor was not subject to the jurisdiction of the original court; or
  • Despite the judgment debtor’s domicile or place of business being within the court’s jurisdiction, the judgment debtor did not show up for the proceedings or receive court process serving them; or
  • There was fraud involved in obtaining the judgment; or
  • The judgment debtor certifies to the court that it plans to file an appeal against the judgment, or there is an appeal pending about the judgment;
  • The judgment concerned a cause of action that the registration court was unable to consider due to public policy; or

 

Procedure for registration and enforcement of foreign judgments under the Ordinance

  • An application under the Ordinance seeking leave to register a foreign judgment is to be made by a petition ex parte or on notice to a judge. The judge may direct a petition made exparte to be made on notice. The petition is to be supported by an affidavit of facts exhibiting a certified copy of the judgment and stating that to the best of the information and belief of the deponent, the judgment creditor is entitled to enforce the judgment.
  • Upon hearing the petition, the court may, by an order, grant the judgment creditor leave to register the judgment. Where the order granting leave is made, the order must be served on the judgment debtor where the order is made upon a petition on notice. However, where the order is made upon a petition ex parte, no service of the order on the judgment debtor is required.
  • Thereafter the judgment is to be registered along with the order granting leave to register it in the register of judgments kept in the High Court Registry.
  • Notice of the registration is to be served on the judgment debtor within a reasonable time after such registration.
  • The judgment debtor may, within the time limit specified in the order granting leave to register the judgment, apply by originating petition to a judge to set aside the registration or suspend the execution of the judgment. The judge may, if he is satisfied that the case comes within one of the restricted cases in respect of which may not be registered, or for any other reason, order that the registration be set aside or execution on the judgment be suspended either unconditionally or on such terms as he thinks fit.
  • Upon registration, the judgment has the same force and effect as a judgment delivered by the registering court and the registering court has the same control and jurisdiction over the judgment as it has over its own judgment. A registered judgment cannot be executed until the expiry of the time limit specified in the order granting leave to register the judgment.

 

Enforcement of foreign judgment under the Foreign Judgments (Reciprocal Enforcement) Act

Section 4 of the Act stipulates that foreign judgments are only enforceable by Nigerian courts if they fall under Part I of the Act, which is defined as final and conclusive foreign superior court judgments involving a sum of money payable that is not recoverable as tax, fine, or other penalty.

The Act specifies when a registered judgment may or may not be set aside as follows:

  • The judgment is not a judgment to which Part 1 of the Act applies or was registered in contravention of the provisions of the Act;
  • The courts of the country of the original court had no jurisdiction in the circumstances of the case;
  • The judgment debtor, being the defendant in the proceedings in the original court, did not (notwithstanding that process may have been duly served on him in accordance with the law of the country of the original court) received notice of those proceedings in sufficient time to enable him to defend the proceedings and did not appear;
  • The judgment was obtained by fraud;
  • The enforcement of the judgment would be contrary to public policy in Nigeria; or
  • The rights under the judgment are not vested in the person by whom the application for registration was made.

Accordingly, the types of foreign judgments that will not be enforced in Nigeria are:

  • Interim and interlocutory orders;
  • Judgments obtained from an inferior court in the foreign country; and
  • Judgments that are not in respect of a monetary sum or, where in respect of a monetary sum, the sum is payable in respect of taxes, or other charges of a like nature.
  • If a foreign judgment was fully satisfied at the time of the application or could not have been executed in the place where the original court was located, it will also not be registered and will be unenforceable.

 

Enforcement of foreign judgment under the Common Law

Under Common Law, a foreign judgment is considered a debt that gives birth to a new cause of action by the creditor. The common practice among the many Common Wealth Countries appears to be the inability of a judgment creditor to directly enforce the judgment in the country of the judgment debtor.

According to Common Law, the foreign judgment creates an obligation, but the judgment creditor must file a new lawsuit in response to the decision. Direct execution cannot be carried out by the judgment creditor. These judgments are regarded under common law as proof of debt.

A Writ of Summons and an application for summary judgment are typically used to start a new action. A judgment debtor may raise more defenses against the action to enforce the judgment under this approach.

A party wishing for a foreign judgment to be recognized and enforced in Nigeria must file a suit before a Nigerian court based on the foreign judgment. However, in order for a foreign judgment to be recognized and upheld in Nigeria under the Common Law system, it must meet the requirements mentioned below:

  • The judgment must be a judgment of a superior court of the country of the original court with the requisite jurisdiction to entertain such matter. The court that delivers the judgment must be court of competent jurisdiction over the foreign defendant. In the case of Emmanuel v Symon (1908) 1 K. B. 302, the court stated instances where a foreign judgment will be enforced to include:
  1. where the defendant is a subject of the foreign country in which the judgment has been obtained;
  2. where he was resident in the foreign country when the action began;
  • where the defendant in the character of the plaintiff has selected the forum in which he was afterward sued;
  1. where he has voluntarily appeared; and
  2. where he has contracted to submit himself to the forum in which the judgment was obtained
  • The judgment must be for a specific amount of money. If the decision relates to a number that will fluctuate in the future or to expenses and damages that must be assessed, it is not definitive nor final in that sense because the total amount cannot be determined at that point.
  • Between the parties to it, the judgment must be conclusive and final. Before it can be enforced, a foreign judgment must be final and conclusive in the court that issued it. A judgment in this regard is not definitive and final, and therefore cannot be enforced under the Common Law, if it can be reopened by additional processes in which defenses might be brought that may not have been pleaded in the earlier proceedings.
  • The judgment must not have been obtained by fraud. The court will quickly refuse recognition and the judgment will not be enforced if it was obtained through illegal means.
  • If the judgment is for res other than money, the res must have been situated at the foreign court’s jurisdiction at the time of delivery of the sought judgment.

It is important to note that unsatisfied parties may still file an appeal in the original country even after a foreign judgment is registered in Nigeria.

 

Impact of a registered judgment

A judgment that has been registered has the same force and effect as the registering court’s judgment for the purposes of execution.

 

Conclusion

The recognition and enforcement of foreign judgments in Nigeria are governed by specific legal frameworks and conditions. While there are challenges to recognition and enforcement, the process can be navigated effectively by understanding the legal requirements and procedures involved.

To enforce a foreign judgment in Nigeria, a party must file an application with the High Court, providing the necessary documents and evidence to demonstrate the validity of the judgment. The court will then review the documents and hear arguments from both parties before making a decision on whether to enforce the judgment.

It is important to note that the recognition and enforcement of foreign judgments in Nigeria are subject to certain conditions, including the requirement that the judgment must be final and conclusive, the court that issued the judgment must have jurisdiction, and the judgment must not be contrary to public policy in Nigeria.

Overall, the recognition and enforcement of foreign judgments in Nigeria play a crucial role in upholding the rule of law and protecting the rights of parties involved in international transactions. By following the established procedures and regulations, parties can ensure that their rights and obligations are enforced in a fair and impartial manner, contributing to a more efficient and effective legal system in Nigeria.

 

Recommendation

To ensure the smooth recognition and enforcement of foreign judgments in Nigeria, the following recommendations are made:

  • Clear Understanding of Legal Frameworks: Courts, legal practitioners and litigants should have a clear understanding of the legal frameworks governing the recognition and enforcement of foreign judgments in Nigeria.
  • Compliance with Conditions: Foreign judgments should comply with the conditions outlined in the legal frameworks to ensure recognition and enforcement.
  • Proper Procedure: The proper procedure for recognition and enforcement should be followed to avoid challenges and ensure the effective enforcement of foreign judgments.
  • Reciprocal Arrangements: Nigeria should consider establishing reciprocal arrangements with other countries to facilitate the recognition and enforcement of judgments.
  • Legal Advice: A person wishing to enforce a foreign judgment in Nigeria should obtain legal counsel regarding the applicable legal regime for the specific judgment sought to be enforced, the court having jurisdiction over the subject matter, and the judgment debtor’s right of appeal. The application for enforcement should be submitted no later than 12 months from the date the judgment was delivered.

 

Note: The content of this article is anticipated to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance.

 

By Adeola Oyinlade & Co.

 

Adeola Oyinlade & Co.; a full-service law firm in Nigeria provides help and offers legal an advisory services to both local and foreign clients on litigation and dispute resolution matters in Nigeria.

 

Need help? Kindly contact us using the details below:

Email: [email protected]

Mobile: +234 803 826 7683 / +234 802 686 0247

Introduction

Going public is a significant milestone for any private company, offering access to capital, increased visibility, and enhanced credibility. In Nigeria, the Nigerian Exchange Group (NGX) formerly The Nigerian Stock Exchange (NSE) provides a platform for companies to raise capital and trade their shares. However, navigating this complex process demands meticulous planning, from securing board and shareholder approval to complying with regulatory requirements stipulated by the Corporate Affairs Commission (CAC), Securities and Exchange Commission (SEC), and the Nigerian Exchange Group NGX. 

This guide outlines the requirements, costs, and steps involved in taking a private company public and listing on the NGX.

Regulatory Framework for a Private Company to go Public on the on the NGX

  1. The CAMA provides the legislative framework for company registration, share restructuring, and corporate governance in Nigeria. This involves special resolution, minimum share capital requirements, mandatory disclosure and reporting requirements and appointments of external auditors for financial verification.
  2. Compliance with SEC Regulations, file a prospectus and meet disclosure requirements.
  3.  NGE Listing Rules: Companies must comply with specific listing rules regarding corporate governance, financial performance, and public float.

Differences between Private and Public Companies

The primary difference between private and public companies lies in their ownership structure and share transferability. A private company is typically owned by a small group of individuals, with restrictions on share transfers to the public. In contrast, a public company offers its shares for sale on a stock exchange, allowing the public to become shareholders.

Key Differences:

  1. shareholders: Public companies can have an unlimited number of shareholders, whereas private companies are limited to a maximum of 50 shareholders, as stipulated in CAMA
  2. Disclosure and Reporting: Public companies are subject to more stringent disclosure and reporting requirements, in compliance with CAMA, whereas private companies have less onerous reporting obligations.

These distinctions highlight the different regulatory requirements and ownership structures that apply to private and public companies in Nigeria

 

The benefits of Going Public in Nigeria

Transitioning from a private to a public company and listing on the Nigerian Exchange Group (NGX) offers numerous advantages, including:

  1. Capital Raising: 
  2. Liquidity for Shareholders
  3. Enhanced Credibility
  4. Increased transparency and accountability
  5. Access to a wider investor base
  6. Improved corporate governance
  7. Enhanced visibility and brand recognition

By going public, Nigerian companies can unlock new opportunities for growth, expansion, and success.

Categories of Listing available on the NGX

NGX offers a range of listing options through its three boards, each designed to support companies at different stages of growth and development. By choosing the right board, you can access the capital and resources needed to drive your business forward

  1. Growth board listing
  2. Main board listing
  3. Premium board listing 

 

The Step-by-Step Guide in converting a Private Company to a Public Company

Step 1: Board and Shareholder Approval 

The journey to becoming a public company begins with obtaining approval from the company’s board and shareholders. A special resolution must be passed by the shareholders to authorize the re-registration of the company as a public company.

 

Step 2: Compliance with the Corporate Affairs Commission (CAC) 

Following shareholder approval, the company must file an application with the CAC for re-registration as a public company. The application must include:

  1. Amended Memorandum and Articles of Association (MEMART) reflecting the change
  2. Special resolution from the shareholders
  3. Any other required documents

 

Step 3: Restructuring the Company’s Share Capital 

To meet the requirements of a public company, the company may need to restructure its share capital. This involves increasing the issued share capital to a minimum of 2 million, which may require issuing additional shares or restructuring existing shares.

 

Step 4: Appointment of Advisors and Auditors 

To ensure a smooth transition, the company must appoint professionals to guide it through the legal, financial, and regulatory aspects of going public. This includes:

  1. Financial Advisors: to assist with valuation and IPO structuring
  2. Legal Advisors: to ensure compliance with CAMA, SEC, and NGX requirements
  3. Auditors: to audit the company’s financial statements

 

Step 5: Filing an Initial Public Offering (IPO)

The company must file an IPO with the Securities and Exchange Commission (SEC), providing a prospectus that includes a detailed description of the company, its business model, and financial condition.

 

Step 6: Applying for NSE Listing

After initiating the IPO process, the company can apply for listing on the NSE. This involves submitting the company’s financial statements, business model, and governance structure to the NSE for review. The company must comply with NSE’s listing rules, including the minimum public float requirement. The NGX will review the company’s application and ensure that it meets all listing requirements. Once the NGX has approved the company’s application, it will be listed on the exchange. The company’s shares will be listed on the NGX, and trading will commence.

 

Costs Involved in Listing on the NGX

The costs involved in listing on the NGX can be significant and include:

  1. Listing Fees: The NGX charges a listing fee, which varies depending on the type of listing and the company’s market capitalization.
  2. Professional Fees: The company must pay fees to its professional advisers, including lawyers, accountants, and stockbrokers.
  3. Marketing and Investor Relations: The company may incur costs related to marketing and investor relations, including the preparation of a prospectus and other listing documents.
  4. Regulatory Fees: The company must pay fees to the Securities and Exchange Commission (SEC) and other regulatory bodies.

 

Conclusion

Listing on the NGX can provide a private company with access to capital, increased visibility, and enhanced credibility. However, the process involves significant costs and requirements. By understanding the requirements, costs, and process involved, companies can navigate the listing process more effectively and achieve a successful listing.

By Deborah Ogedengbe for Adeola Oyinlade & Co.

 

Adeola Oyinlade & Co. is a leading full-service law firm in Nigeria offering legal and advisory services to both local and foreign clients in the corporate, finance and capital market sectors of Nigeria.

 To see our service offerings, please contact us at [email protected] or visit www.adeolaoyinlade.com

 Mobile: +234 803 826 7683 / +234 802 686 0247

The PPPRA plays a vital role in maintaining the stability of petroleum product pricing, regulating supply and distribution, and ensuring a robust downstream sector. For businesses involved in petroleum importation, obtaining a Petroleum Importation License from the PPPRA is a critical requirement. 

This Article outlines the requirements and steps involved in securing this license, helping potential clients navigate the process smoothly.

Requirements:

To obtain a Petroleum Importation License, applicants must fulfill the following conditions:

  1. Expression of Interest: Submit a written application addressed to the Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA).
  2. Storage and Distribution Capacity: Provide documentation demonstrating ownership or control of a storage facility, throughput agreement, or retail outlets, showcasing the applicant’s ability to store and distribute petroleum products.
  3. NUPRC License: Hold a valid Storage/Import License issued by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
  4. Corporate Registration: Submit certified true copies of the following documents from the Corporate Affairs Commission (CAC):

    – Certificate of Incorporation

    – Memorandum and Articles of Association

    – CAC Status Report or Form 1.1

    – CAC Form C02 (Allotment of Shares)

    – CAC Form C07 (Particulars of Directorship)

    – Annual Returns made to the CAC

  1. Memorandum of Understanding (if applicable): Provide agreements with other companies, if relevant.
  2. Financial Capability: Submit a bank reference letter or evidence of financing, demonstrating the applicant’s ability to fund petroleum importation.

 

Steps to apply for Petroleum Importation License from the Petroleum Products

To obtain a Petroleum Importation License, follow these steps:

 

Step 1:  Submit Application

  1. Prepare a written expression of interest addressed to the Executive Secretary of PPPRA.
  2.  Compile and attach all required documents to the application.

 

Step 2: Demonstrate Storage Capability

  1. Provide proof of ownership of a storage facility or a valid throughput agreement.
  2. Include documentation proving ownership or control of retail outlets, if applicable.

 

Step 3:  Obtain NUPRC License

  1. Secure a storage/import license from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
  2. This license demonstrates compliance with storage and safety regulations.

 

Step 4: Submit Corporate Documentation

Provide certified true copies of company registration documents from the Corporate Affairs Commission (CAC), including:

  1. Certificate of Incorporation (proof of legal status)
  2. Memorandum and Articles of Association (detailed business information)
  3. Business Status Report, CAC Forms 1, C02, and C07 (information on directors and shareholders)
  4. Annual Returns (proof of financial standing and regulatory compliance)
  5. Provide Memorandum of Understanding (if applicable)

 

Step 5: Demonstrate Financial Capability

Provide a bank reference letter or other evidence of financing, proving the company’s ability to support petroleum importation activities.

 

Step 6: Review and Approval

  1. Submit the complete application to PPPRA for review.
  2. The agency will assess the applicant’s performance and capability, including storage capacity and discharge efficiency.
  3.  Successful applicants will be issued a Petroleum Importation License.

 

Conclusion

A Petroleum Importation License is a critical requirement for businesses importing petroleum products in Nigeria. By meeting the necessary requirements and following the process, companies can ensure compliance and tap into the petroleum sector’s opportunities.

 

By Deborah Ogedengbe for Adeola Oyinlade & Co.

 

Adeola Oyinlade & Co. is a leading full-service law firm in Nigeria offering legal and advisory services to both local and foreign clients in the Oil and Gas sectors in Nigeria.

 To see our service offerings, please contact us at [email protected] or visit www.adeolaoyinlade.com

 Mobile: +234 803 826 7683 / +234 802 686 0247

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