A Critical Analysis Of The Nigerian Business Facilitation Act and All The Provisions That Relate To Promotion Of Corporate Investment In Nigeria

Nigeria’s economy as one of Africa’s largest economies has been grossly affected by business and entrepreneurial activities through the influence of government and its policies, foreign investments, global markets, civilization, among other variables. As recorded by the World Bank’s rating, Nigeria currently ranks 131st out of 190 economies in the world on ease of doing business.This rating is based on how the regulatory environment is conducive enough for businesses to operate through a simpler and friendly regulations, as well as stronger protections of business rights by governments and other regulatory bodies. In an attempt to tally with this level of economic growth, the country has faced persistent challenges in creating a conducive environment and systems of business operations. These regulations are not static, but ever-changing to reflect economic realities as well as changes in the international standards and practices. Perhaps; this necessitates some legislative reforms to enhance the business environment and to attract more corporate investments. Two important enactments in this regard are the The Business Facilitation (Miscellaneous Provision) Act, 2023 (the “Act” or the “BFA 2023”)  and the Nigerian Startup Act (NSA). Generally, the changes introduced by this Acts are without a doubt, an advancement to our laws.

The BFA received presidential assent by President Muhammadu Buhari on the 8th day of  February 2023, having been passed into law by the National Assembly, which became known as the Business Facilitation (Miscellaneous Provisions) Act, 2023. As the objective of the Act states by the virtue of its section 1;

1.—(1) The objectives of this Act are to —

(a) promote the ease of doing business in Nigeria and eliminate

bottlenecks ; and

(b) amend relevant legislation to promote the ease of doing business in

Nigeria and institutionalise all the reforms to ease implementation.

In this connection, the Act notably amended about 21 business-related laws, namely: the Companies Allied Matters Act (“CAMA”), Nigerian Export Promotion Council Act, Customs and Excise Management Act, Export Prohibition Act, Financial Reporting Council Act, Foreign Exchange (Monitoring and Miscellaneous Act), Immigration Act, Industrial Inspectorate Act, Industrial Training Fund Act, Investment and Securities Act, National Housing Fund Act, National Technological Acquisition and Promotion Act, National Planning Commission Act, Nigerian Customs Service Board Act, Nigerian Investment Promotion Commission Act, Nigerian Oil and Gas Industry Content Development Act, Nigerian Ports Authority Act, Patents and Designs Act, Pension Reform Act, Standards Organisation of Nigeria Act, and Trademarks Act.

While the Nigerian Startup Act was also signed by President Muhammad Buhari in October 2022, as a forward-thinking legislative reform designed to harness the potentialities of Nigeria’s burgeoning tech ecosystem. The Act seeks to provide a conducive environment for the establishment, development, and scaling of businesses startups by addressing regulatory, funding, and infrastructural challenges. Section 1 provides for the objective of the Act;

1. The objectives of this Act are to —

(a) provide a legal and institutional framework for the development of

startups in Nigeria ;

(b) provide an enabling environment for the establishment, development

and operation of startups in Nigeria ;

(c) provide for the development and growth of technology-related