Africa Industry and Commerce Law Nigeria

Doing business simplified Nigeria: obtaining the national office for technology acquisition & promotion approval

Have you entered into an agreement or do you intend to enter into an agreement involving the transfer of foreign technology from a foreign party (e.g. from your parent company) into Nigeria in connection with your operations? If yes, you may need the National Office for Technology Acquisition and Promotion’s (“NOTAP”) approval.

What types of Technology Transfer Agreements require NOTAP Approval?

All agreements for the supply of foreign technology to a Nigerian entity which involve:

  • the grant of foreign trademark license;
  • the grant of access to foreign patents and inventions;
  • the deployment/resale of software products;
  • value added services;
  • technical services;
  • management services; or
  • consultancy services.

What are the key things that NOTAP looks out for in a Technology Transfer Agreement?

Some key requirements for Technology Transfer Agreements (“Agreement”) include:

  • Duration of the Agreement: The duration of the Agreement should be a maximum of 3 (three) years.
  • Fee for the Technology Transfer: This forms part of the basis upon which the Agreement will be evaluated and approved.
  • Provision for the transfer of knowledge: The Agreement should show the transfer of
  • technical knowledge to Nigerians for capacity building.
  • Deduction of applicable Taxes: The Agreement is required to make provision for deduction of appropriate taxes.

What is the timeline for obtaining a NOTAP approval?

The timeline for obtaining a NOTAP approval from the date of filing the application to the issuance of the approval is usually 90 (Ninety) days.

What is the applicable registration fee for obtaining a NOTAP approval?

The Registration fee ranges from ₦100,000 (One Hundred Thousand Naira) to ₦20,000,000 (Twenty Million Naira).

 What are the effects of not obtaining NOTAP approval or late submission of an  Agreement for NOTAP’s approval?

  • Where NOTAP’s approval is not obtained, you would be precluded from accessing the official foreign exchange market in Nigeria to service obligations arising out of the Technology Transfer Agreement.
  • Where the Agreement is not presented for registration to NOTAP within 30 days from the effective date of the Agreement, it shall be subject to a penalty fee of ₦100,000.00 (One Hundred Thousand Naira) for late submission.

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