Lawyer Ayokun
Lawyer
by Ayokun
An overview of Food and Agricultural law in Nigeria
February 17, 2023 in Food/Agricultural Law
Introduction
Agriculture is one of the main sources of Nigerian economy. It is a source of livelihood for the majority of Nigerian. Agriculture used to be the mainstay of Nigeria economy before the oil bloom. President Muhammadu Buhari promised Nigerian diversification of the economy by focusing more on Agriculture. The president launched the Agricultural Promotion Policy (APP) to ensure the provision of the required legislative and agricultural framework, macro policies, security, infrastructure and institutional mechanisms to allow farmers access essential inputs, finance, information, agricultural services and markets.
This article seeks to examine various legal frameworks that are put in place to encourage farming.
Legal Framework on Agriculture in Nigeria
1. Companies and Allied Matters Act (CAMA) 2020: For any entity to operate as a business in Nigeria, it must be incorporated and regulated by the Corporate Affairs Commission, a body established under CAMA. The recently passed law sets out options through which and the parameters within which a business can operate in Nigeria. Some of these options include – Limited Liability Company (Ltd), Limited Partnership (LP), Limited Liability Partnership (LLP) or a Business Name.
2. The National Agricultural Seeds Act Cap. N5 Vol. 10 LFN 2004
The overall objective of this Act is to harmonise the seed industry with other agricultural input industries to meet the increasing demand of the agricultural sector. The Act also proposes various programs, policies and actions regarding seed development and the seed industry.
3. National Agricultural Land Development Authority (NALDA) Act Cap. N5 Vol.10 Laws of the Federation of Nigeria (LFN) 2004:
This Act seeks to provide strategic public support for land development.
4. The Agricultural Credit Guarantee Scheme Fund Act Cap. A10 LFN 2004: This Act established a fund into which a certain sum of money is to be subscribed to, making provision for and guaranteeing loans for agricultural purposes by any bank.
5. Nigerian Agricultural Insurance Corporation (NAIC) Act Cap. N89 LFN 2004 : This Act provides a scheme to protect the Nigerian farmer from the effect of natural hazards by introducing measures which ensure sufficient indemnity to keep the farmer in business and to establish the Nigerian Agricultural Insurance Corporation.
6. Agricultural (Control of Importation) Act Cap. A13 LFN 2004:
This Act provides for the regulation of the importation of articles used for controlling plant diseases and pests which are injurious to agricultural or horticultural crops.
7. Environmental Impact Assessment Act Cap. E 12, LFN 2004
This Act set out the general principles, procedures and methods to enable the prior consideration of environmental impact assessment on certain public or private projects. It provides the framework for assessment of the impact of activities likely to have significant impacts on natural resources and the environment.
8. The Sea Fisheries Act Cap S4 LFN 2004)
This Act provides for the control, regulation and protection of sea fisheries in the territorial waters of Nigeria. Section 1 states that “No person shall operate or navigate any motor fishing boat for the purpose of fishing or a reefer vessel for the purpose of discharging frozen fish within the territorial waters of Nigeria or its exclusive economic zone unless that boat or reefer vessel has been duly registered and licensed.”
Conclusion
Nigeria is a blessed country with an abundance of natural resources. The problem lies in the way the resources are managed. But over the years the agricultural sector has suffered a series of setback. Regardless of the challenges, the agriculture sector remains very important to the Nigerian economy.
REFERENCES
1. https://uk.practicallaw.thomsonreuters.com/9-605-0428?transitionType=Default&contextData=(sc.Default)
2. https://www.mondaq.com/nigeria/land-law–agriculture/1132766/an-overview-of-the-legal-framework-within-the-nigerian-agricultural-landscape
3. https://www.mondaq.com/nigeria/land-law–agriculture/1132766/an-overview-of-the-legal-framework-within-the-nigerian-agricultural-landscape
by Ayokun
Climate Change: The Outcome of COP 27 and Effect on Nigeria
December 13, 2022 in Energy Law and Natural Resources/Environmental Law
Introduction
Nigeria has witnessed an increase in the rate of flooding. As at 6th of October 2022, 33 states out of the 36 states in Nigeria were affected by flooding which has affected many lives and displaced more than 1.4 million and affected 2.5million. According to Al jazeera, there were over 600 fatalities and more than 24,000 injured.
The flooding occurred as a result of heavy rainfall which is a resultant effect of climate change.
It is against this background that the United Nations since 1992 hold summit with all countries of the world in order to discuss the issue of climate change which is a global concern. The 27th Conference of the Parties ” COP 27″ was held on the 6th November to 20th November 2022 in Sharm El-Sheik, Egypt. Nigeria also participated in the COP 26 in Glasgow
Highlights of COP 27
1. Financial Assistance: The developing countries pushed their demands on the need for a separate fund to cater for the loss and damage that may occur to the developing countries as a result of climate change. It was agreed that a financial structure will be established for the vulnerable countries.
2. The global temperature should be below 1.5°C
3. Energy Transition: The countries also reaffirmed that there will be reduction in the use of coals to renewable energy.
The Steps Nigeria has taken regarding the climate change
1. Passing of climate change Act: The climate change Act 2021 is the legal framework on the climate change. The Act mandates private entity that has more than 50 employees to put measures in place to achieve annual carbon emission reduction and also designate a climate change officer. The Act also provides for the climate change fund to support climate change advocacy and transition to renewable energy
2. Launching of the Energy Transition Plan : Professor Yemi Osinbajo launched Nigeria’s Energy Transition Plan (ETP) on August 24, 2022, establishing the country’s strategy to reach a net-zero emissions energy system by 2060. This is to reduce the use of lower emissions energy sources.
Conclusion
Nigeria is also taking a great step in nipping the climate change in the bud. The passing of the Climate Change Act and the launching of the Energy Transition Plan is a good step in the right direction.
by Ayokun
Delay of Domestic Flight: Any Remedy in Law?
October 27, 2022 in Aviation Law
INTRODUCTION
Aviation sector is regulated by Nigeria Civil Aviation Authority (NCAA), Federal Airport Authority of Nigeria (FAAN) and the Nigeria Airspace Management Agency (NAMA). The primary acts are Civil Aviation Act, Federal Airport Authority of Nigeria Act and the Nigeria Airspace Management Act. One of the major responsibilities of Nigeria Civil Aviation Authority is to protect the rights of air passengers in Nigeria. The rights of air passengers are contained in Part 19 of Nigeria. Civil Aviation Regulations 2012, Vol. II.
It is not uncommon to hear of cases of flight delay by the Nigeria Airlines. In fact, it is now the order of the day which makes one wonder if passengers have any rights? And the role of the regulators in this sector?
RIGHT OF PASSENGERS WHEN A FLIGHT IS DELAYED
When flights are delayed, passengers have the right to compensation. Flight delay occurs where an Airlines takes off or lands more than the scheduled time. According to regulation 19.4.1.1 where there is a flight delay, the airline immediately after one hour must provide refreshments including water, soft drinks, confectioneries, or snacks. In addition to that the passenger will be given free of charge, two telephone calls, SMS, or e-mails. If the delay is for more than two hours then the passenger is entitled to reimbursement in cash.
When the delay occurs around 10 p.m. and 4 a.m. or at a time where the airport is closed then the passenger is entitled to hotel accommodation and transport.
The passenger can also claim 25 percent of the ticket price when his flight is delayed but this will depend on the length of the delay. The delay must be at least one hour. This is in accordance with regulation 19.16.2. of the Nigeria Civil Aviation Regulation.
CONDITIONS FOR GETTING COMPENSATION
With every right comes is a corresponding duty. A passenger that wants to enforce these rights must fulfil this precondition
a) The passenger must have checked in at the stipulated time.
b) The reservation must have been confirmed.
c) The flight must be a domestic flight within Nigeria territory.
STEPS FOR GETTING THE COMPENSATION
Passengers that want to enforce any of these rights can take any of the following steps.
a) He/she can write to the airline in question.
b) If the airline does not deal with the issue satisfactorily then the passenger can lay further complaint to Consumer Protection Directorate of the NCAA.
c) If the Directorate does not deal with the matter then it can be addressed to consumer protection Council .
d) The passenger can engage the service of a lawyer to take the matter to court at any stage.
CONCLUSION
It is important to note that in case of flight delay described above, the passenger should first contact the airline in question before resorting to other means.
by Ayokun
The Nigeria Start-Up Act: The Incentives for Start-ups – Series 1
October 24, 2022 in ICT/Cyber Law
INTRODUCTION
On the 19th of October 2022 the start-up bill, an executive bill, was signed into law by the President of the Federal Republic of Nigeria. The Nigeria start-up Act is a joint initiative by Nigeria’s tech start-up ecosystem and the Presidency to harness the potential of our digital economy through co-created regulations.
The primary aim of the Act is to have clear and planned laws and regulations that work for the tech ecosystems in the country for the creation enabling environment for growth, attraction and protection of investment in tech start-ups.
This is a welcome development, as the Act will Create Jobs, Boost Entrepreneurship, and has the capacity to improve the inflow of Foreign Investors To Nigeria. The Start-up is applicable to technology-enabled start-ups in Nigeria. A start-up is defined as an act or an instance of setting in operation or motion by the Merriam-Webster dictionary. In practice
THE ACT
To qualify for the incentives in the Act, a start-up must have the following:
1. The start-up must have a start-up label: To be labelled as a start-up, a certificate must be issued by the Secretariat. The certificate will be issued if the start-up fulfils the following requirements provided by section 13 of the Act:
- It is registered as a limited liability company with the Corporate Affairs Commission (CAC) and has been in existence for a period of not more than 10 years from the date of incorporation.
- its objects are innovation, development, production, improvement, and commercialisation of a digital technology innovative product or process
- The start-up is the owner or author of a registered software
- It has at least one Nigerian as a founder or Co-founder who will share the revenue or profit from the sale of shares
For start-ups that are not registered with CAC, a pre-label status will be granted to such start-ups for six months in order to comply with requirements (2) and (3) above.
- Upon getting the label as a start-up. A Start-up will enjoy the following benefits.
- Tax and Fiscal Incentives for start-ups and their employees
- Training and Capacity building by the secretariat
- Support of Corporate Affairs Commission
- Protection of Intellectual Property
- Crowdfunding
- Transfer of foreign Technology
- Ease in obtaining a license for fintech start-ups
- Participation in regulatory sandboxes and incubator programmes
- Listing of start-ups in exchanges
- Repatriation of capital and profits: Repatriation of investment by an authorised dealer in freely convertible currency.
- Establishment of clusters, hubs, innovation parks and technology development zones etc.
TAX AND FISCAL INCENTIVES FOR START-UP
Today we will discuss some of the Tax and Fiscal Incentives for start-ups and their employees – sections 24 to 32 of the Act.
The Act provides for the following Tax and Fiscal Incentives for labelled start-ups and their employees:
- Start-ups that fall within industries under the existing pioneer status incentives can apply to Nigerian Investment Promotion Commission (NIPC) for grant of tax reliefs and incentives. Also, the federal government may simplify the existing procedures and requirements to enable start-ups to benefit from existing fiscal incentives. Section 24 & 25.
- Labelled start-ups can be exempted from the payment of income tax or other chargeable tax on their income or revenue for a period of four (4) years. Section 25.
- In addition to other tax reliefs, a labelled start-up with a minimum of ten employees, 60% of which are employees without any form of work experience, and said employees are within three years of graduating from school or any vocation within the assessment period, shall enjoy tax relief from income tax of 5% of its assessable profits in the year of assessment in which the profits were generated for a period of up to five (5) years. Section 26.
- Labelled start-ups engaged in the exportation of products and services (eligible under the Export (Incentives and Miscellaneous Provisions) Act, are entitled to export Incentives and financial assistance from the Export Development Fund, Export Expansion grant and the Export Adjustment Scheme Fund. Section 27.
- Right and Ease in accessing grants and loan facilities administered by the Central Bank of Nigeria (CBN), the Bank of Industry or other bodies statutorily empowered to assist small and medium-scale enterprises and entrepreneurs. Section 28.
- Credit Guarantee Scheme available for labelled start-ups shall be established for the development and growth of a labelled start-up in terms of accessible financial support, creation of a framework for credit guarantee, provision of financial and credit information to start-ups, and provision of financial management capacity building programmes to start-ups. Section 29.
- An angel investor, venture capitalist, private equity fund, accelerator or incubator which invests in a labelled start-up shall be entitled to an investment tax credit equivalent to 30% of the investment in the labelled start-up. Capital gains tax shall not be charged on gains that accrue from the disposal of assets by an angel investor, venture capitalist, private equity fund, accelerator or incubator with respect to a labelled start-up. Section 30
- An eligible employee of a labelled start-up shall be entitled to a personal income tax exemption of 35% on the income of the employee for a period of two years from the date of engagement by a labelled start-up. Section 31.
- Tax incentives for external service providers: foreign entities which provide technical, consulting, professional or management services to a labelled start-up shall be subjected to a five per cent withholding tax on income derived from the provision of such services, provided that the payment of the withholding tax, shall qualify as the final tax to be paid by a company not registered in Nigeria. Section 32.
Other great incentives for Startups in the new Nigeria Start-up Act will be discussed in the next series. Stay tuned.