29 Sep Certificate of Capital Importation (CCI)
Nigerian law and the Central Bank of Nigeria (“CBN”) Guidelines require every foreigner investing in a local business to procure a CCI on the in-flow of foreign currency into Nigeria to pay for the investment. The CCI is the evidence of capital in-flow/investment into a Nigerian company by a foreign investor which legitimizes and facilitates the repatriation of dividends, profits and capital attributable to the investment from Nigeria to a foreign country.
In order to obtain a CCI, the capital must be in-flowed through a Nigerian bank into an account in the local company’s name. Prior to the in-flow, a board resolution approving the in-flow of funds for the payment of the shares is required to be passed by the local company and delivered to the bank. A telex message from the offshore entity wiring the funds and instructing the bank on the purpose of the funds is also required.
The telex message will comprise the amount, the purpose and the names of the foreign shareholders making the equity investment. The Nigerian bank typically issues the CCI within 48 (forty-eight) hours of receipt of the capital. The CCI is required as part of the documentation for business permit and expatriate quota approvals.
Electronic Certificate of Capital Importation (e-CCI)
The CBN has recently automated the process of CCI issuance to facilitate efficient service delivery and operational efficiency. Subsequently, the CBN has directed that all active CCIs (which have not been utilized or not fully utilized) be migrated to the e-CCI portal as physical CCIs will be phased out.
The e-CCI application will cater for all activities within the lifecycle of the CCI; which includes issuance, markup, markdown, divestment, reinvestment, cancellation, amendment, transfer, Global Depository Receipt (“GDR”) creation and securities lending. Maintenance and oversight functions in respect of the e-CCI application server will reside with the CBN.
The key benefits of the e-CCI include:
- Convenient means of safe-keeping of CCIs.
- Easy tracking of investments across banks as users will be able to access their investments using a unique identifier.
- Easy transfer and amendment of CCIs where investments are transferred.
- Requests requiring CBN’s approval will now be sent online and status can be easily tracked.
- Environmentally friendly process as paper usage is reduced.
Our Firm can assist with interfacing with the respective banks in terms of opening a local bank account and the issuance of the CCI. This typically takes place after the incorporation of the local company which is a service we also offer.
The content of this document is solely for information purposes only and should not in any way be construed as a legal opinion. If you require specific legal advice on any of the matters covered in this article please contact firstname.lastname@example.org