The Crime Of Money Laundering And Criminal Enforcement In Nigeria

Money laundering is the illegal concealing of money obtained from criminal or illicit activities with the purpose of appearing to have been gotten from a legitimate source.

The Economic and Financial Crimes Commission (EFCC) empowered by The Economic and Financial Crimes Commission (EFCC) Act is the agency responsible for the regulation, investigation and prosecution of economic and financial crimes in Nigeria. Other government agencies involved in investigating economic crimes include; National Drug Law Enforcement Agency (NDLEA), Central Bank of Nigeria (CBN), Nigeria Police Force and Nigerian Customs Service.

Anti-Money Laundering (AML)

Anti-Money Laundering includes set of policies, laws and regulations designed to prevent and combat financial crimes and illegal activities.

The key Nigerian AML legislation and regulations are as follows:

  • Money Laundering Act.
  • Terrorism Prevention Act, 2012 (as amended).
  • Terrorism Prevention (Freezing of International Terrorist Funds and other Related Matters) Regulations, 2013.
  • Economic and Financial Crime Commission (Establishment) Act 2004.
  • Banks and Other Financial Institutions Act (BOFIA) 1991.
  • CBN AML/CFT Regulations, 2013.
  • CBN Act, 2017.
  • CBN AML/CFT Risk-Based Supervision Framework, 2011.
  • CBN Circulars and other communications by regulators.
  • National Drug Law Enforcement Act (1990).
  • Other international instruments (such as FATF Recommendations, United Nations Security Council Resolutions).

Designated Financial Institutions and Businesses

AML policies and regulations are applicable to some financial institutions and other designated businesses such as banks advisory firms, jewelers, chartered accountants, legal practitioners, hotels, casinos, supermarkets, tax consultants, car dealers, dealers in luxury goods, bureaux de change, insurance institutions, money brokerage firms, investment management firms, project consultancy firms, and pension fund management firms. These financial institutions and designated businesses are required to maintain compliance programmes under the Money Laundering Act which include the following:

  • Designation of an AML chief compliance officer at management level.
  • Identifying AML regulations and offences.
  • Identifying the nature of money laundering.
  • Reporting money laundering “red flags” and suspicious transactions.
  • Meeting reporting requirements.
  • Carrying out customer due diligence.
  • Adopting a risk-based approach to AML.
  • Record-keeping and adhering to retention policy.
  • Monitoring of employees’ accounts.

Offences and penalties

Generally, natural persons and non-juristic persons can be investigated, prosecuted and convicted for money laundering offences. The maximum penalties for natural persons are a term of imprisonment of between 7 to 14 years, a fine of at least 1 million Naira. The penalties for non-juristic persons include the prosecution of the principal officers of the corporate body and winding up of the corporate body, or the winding up and forfeiture of assets and properties. There are however other options opened to a defendant in a money laundering cases such as Plea bargains, settlement agreements, prosecutorial discretion. The records of the fact and terms of such settlements are usually not made public. The court may order the forfeiture or confiscation of proceeds and assets whether tangible or intangible, gotten directly or indirectly from a criminal or illegal activity on trial.

Money laundering offences can be prosecuted in Nigerian courts without time restrictions. There is no provision for statute of limitation for money laundering offences in Nigeria. AML laws in Nigeria have extraterritorial reach.  The offence of money laundering has been extended to apply to natural or legal persons outside of Nigeria as provided under section 15(2) of the Money Laundering Act. The laundering of the proceeds of foreign crimes is also punishable in Nigeria.

Administration and Enforcement of AML

The CBN, EFCC and Special Control Unit against Money Laundering are the government agencies responsible for compliance and enforcement of AML requirements.

The CBN as a money laundering regulatory agency set up Guidelines which stipulate that banks within free trade zones (FTZs) are required to ensure strict adherence to the provisions of the Money Laundering Act, Terrorism (Prevention) Act, 2011 (as amended) and the CBN AML/CFT Regulations for Banks and Other Financial Institutions in Nigeria, 2013. Private individuals engaged in international trade are also subject to AML policies, requirements and compliance.

By Adeola Oyinlade & Co

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Building A Solid Intellectual Property Foundation For Startups In Nigeria

Intellectual property (IP) includes valuable tangible or intangible intellectual creations of individuals such as concepts, brands and inventions that give the owners certain exclusive rights. These rights are called IP rights (IPR). Protecting IP rights is crucial for businesses, both large companies and startups. Intellectual Property Laws in Nigeria are enacted to regulate and protect all aspects of IP rights.

The Intellectual Property of startup companies are their most valuable assets in a competitive market. Their products and services in the market not only generates revenue for them but also gives them a competitive advantage, market visibility and attracts investors. Achieving market leverage will be very difficult if startups do not secure their IPs by registration and licencing.

In Nigeria, the various forms of IP rights that can be protected include; trademarks, copyrights, patents, and trade secrets:

  1. Trademarks: A trademark is the identity of any business. It stands a company out through customer recognition. Registering trademarks safeguards a startup’s brand identity, logos, and slogans, preventing others from using similar marks that may cause confusion among consumers. A registered trademark gives the startup owner right to an action for any infringement with its trademark. Under the Trademarks Act, the trademark has to be registered with the Trademarks Registry. A registered trademark is valid for 7 years but can be renewed from time to time for 14 years under the Trademark Act.
  • Copyrights: Copyright is the automatic and exclusive right of the owner of a creative work. Thus, it is not subject to mandatory registration. It is only required that efforts have been expended to make the creative work be original and must have been fixed to a definite medium of expression. Copyright protection extends to original literary, artistic, and musical works, as well as innovative computer software and programmes. It grants creators exclusive rights over their creations, including reproduction, distribution, and public display.
  • Patents and Designs: A patent is a unique invention or technological solution (hardware or software) developed by a startup. Not all inventions are patentable inventions however. The Patent and Designs Act sets out conditions to be met for an invention to be deemed patentable: the invention must be new and capable of industrial application or the invention is an improvement on an already patented invention and is also capable of industrial application. Securing a patent provides exclusive rights and prevents others from using, selling, or importing your invention without permission. It is not compulsory to register or secure a patent; however, a patent right is vested in the first to apply for its registration. Patents last for 20 years, after which the invention becomes part of the public domain and can be used by anyone.
  • Trade Secrets: trade secrets are confidential information of a startup that may be protected if they have commercial value. Safeguarding trade secrets, such as proprietary information, manufacturing processes, or customer lists, through confidentiality agreements and robust internal security measures by a startup can be crucial in maintaining a competitive advantage. It is important that startups sign a non-disclosure or non-compete agreements with employees at workplaces, partners or contractors except on a need to know basis. Thus, where a trade secret is leaked, it will entitle the startup owner right to maintain an action in court for breach of contract or damages.

In leveraging on their IP rights (IPR), products and services of startups can be protected by a combination of intellectual property rights. For example, an invention can be protected by patents, copyrights, trademarks, and trade secrets. 

Proactive Intellectual Property considerations by startups in Nigeria can help fortify and enhance their long-term business success.

Legal professional guidance is crucial for startups for their IP protection.

By Adeola Oyinlade & Co

Adeola Oyinlade & Co provides help and offers advisory to clients on IP rights that can be protected including; trademarks, copyrights, patents, and trade secrets in Nigeria.

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How To Apply and Process Letters of Administration in Lagos, Nigeria

Letter of administration is granted where a deceased person passed away without leaving a Will, that is, intestate. It is issued by the probate registry of the high court to an individual called an administrator to manage, dispose or administer the estate of the deceased person. Until the Letter of Administration is obtained, the estate of the deceased is deemed to be vested in the Chief Judge of the State where the deceased resided. 

The Administration of Estate Law of Lagos state stipulates persons who can apply for the grant of a Letter of Administration:

  • Surviving spouse of the deceased
  • Children of the deceased or the surviving issue of a child who died in the lifetime of the deceased
  • Father or mother of the deceased or the surviving issue of a child who died in the lifetime of the deceased
  • Brothers or sisters of the deceased of full blood and the children of such brothers or sisters who died in the lifetime of the deceased
  • Brothers or sisters of half-blood of the deceased
  • Grandfather or grandmother of the deceased
  • Uncles and aunts of full blood or their children
  • Creditors of the Deceased
  • Administrator General (where all the preceding fail)

Procedure for the grant of Letters of Administration:

The High Court of Lagos State has an online commencement procedure for application and grant of Letters of administration through its website, https://probate.lagosjudiciary.gov.ng:

  1. Application letter to the probate registrar to pay and obtain the requisite probate forms online, which include:
  2. Application for grant of letter of Administration
  3. Oath of Administration by the applicants
  4. Administration Bond
  5. Declaration as to Next of Kin.
  6. Inventory
  7. Particulars of landed property left by the deceased
  8. Schedule of debts and funeral expenses
  9. Sureties’ Application Form
  10. Justification for Sureties
  • Submission of duly signed and completed probate forms to the registry for endorsement and collection of Bank Certificate with accompanying documents such as:
  • Death Certificate of the deceased
  • Passport photo of the deceased
  • Passport photos of all the proposed Administrators and sureties
  • ID Cards of all the proposed Administrators and sureties.
  • Endorsement of the Bank certificate by banks. Financial institutions and other fund administrators where the deceased had monies.
  • Return of the endorsed Bank Certificate to the probate registry for assessment
  • Payment of assessed estate fees.
  • Scheduled interview at the probate registry with administrators and sureties.
  • Publication in a national Newspaper or Gazette for 21 days to allow for objections.
  • Approval by the probate judge where there is no objection after 21 days.
  • Issuance of the Letters of Administration to the applicant.

This article is to provide insight to the application and issuance of Letters of Administration in Lagos state.

By Adeola Oyinlade & Co

Adeola Oyinlade & Co provides help and offers advisory to clients on how to process letters of administration in Lagos, Nigeria.

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Garnishee Proceedings in Nigeria: All You Need To Know

A garnishee proceeding is one of the monetary judgment recovery processes in Nigeria. By default, the party to whom a judgment was given in his favour would usually take steps to enforce the judgment. Garnishee proceedings can be defined as a judicial process of execution or enforcement of monetary judgment whereby money belonging to a judgment debtor, in the hands or possession of a third party known as the ‘Garnishee’ (usually a bank), is attached, or seized by a judgment creditor, in satisfaction of a judgment sum or debt.Garnishee proceeding is “sui generis” that is, different other types of court proceedings.

This article examines the concepts and procedure in garnishee proceedings.

Concepts in Garnishee proceedings:

The garnishee recovery process is guided by the Sheriffs and Civil Process Act CAP A6 Laws of Nigeria 2004(SCPA), the Judgment (Enforcement) Rules (JER), High Court Rules of various States and case laws.

  • Judgment creditor: a person or entity that is entitled to the fruit of judgment in a suit and therefore can enforce execution of the judgment.
  • Judgment debtor:A person or entity that is liable under a judgement to discharge monetary obligation to the judgment creditor but has not done so.
  • Garnishee:a third party who has in his custody money belonging to the judgment debtor and who at the instance of the Judgment Creditor is being called upon to transfer or pay the money directly to the creditor until the debt or claim is satisfied.
  • Garnishee order nisi:an order of court directing the Garnishee to appear in court on a specified date to show cause why an order should not be made upon him for the payment to the judgment creditor of the amount of debt owed by the judgment debtor.
  • Garnishee order absolute:  the order absolute is made at the second stage on the return date hitherto given at the first stage if the Garnishee fails to attend Court, or does not dispute the debt due or claimed to be due from him to the judgment debtor.
  • Monetary judgment: a judgment where there is an order of court directing the judgment debtor to pay money due to the judgment creditor.
  • Judgment sum: an amount of money that the court has ordered the judgment debtor to pay to the judgment creditor.

Procedure for garnishee proceedings:

Garnishee proceedings can be commenced in a Magistrate’s court, High court of states and Federal High court:

  1. Obtaining a Judgment: The first step in initiating garnishee proceedings is to obtain a judgment against the judgment debtor. This can be done through a court action or an arbitration proceeding. Without a valid judgment, it becomes impossible to enforce anything.
  2. Application for a Garnishee Order Nisi: Once a judgment has been obtained, the judgment creditor must apply for a Garnishee Order Nisi from the court. This application is usually made ex parte to the court. Upon satisfaction, this order directs the garnishee to show cause why they should not pay the amount owed to the judgment creditor.
  3. Serving the Garnishee Order Nisi: The Garnishee Order Nisi already obtained must be served on the Garnishee and the judgment debtor. The garnishee is required to file an affidavit stating whether they hold any money or any assets on behalf of the judgment debtor.
  4. Obtaining a Garnishee Order Absolute: If the garnishee admits to owing money or holding assets on behalf of the judgment debtor, the court will issue a Garnishee Order Absolute. This order directs the garnishee to pay the amount owed to the judgment creditor.

In a garnishee proceeding not all debts are payable, only debts which are certain are payable. It is important to note that, the judgment debtor is not a party to the proceedings, even thought he was party to the suit where the monetary sun was awarded against him.

It is crucial that due process is followed in a garnishee proceeding otherwise the process can be upturned on appeal.

The above are a guide to the garnishee proceedings in Nigeria. However, it is important to seek legal advice on specific compliance requirements.

By Adeola Oyinlade & Co

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 circumstances.

Adeola Oyinlade & Co provides help and offers advisory to both local and foreign clients on garnishee proceedings in Nigeria.

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

DOCUMENTS NEEDED WHEN BUYING LANDED PROPERTY IN NIGERIA

There are certain documents necessary when buying landed properties in Nigeria. These are called land documents and they influence the transfer of title and legal interest in a property. The type of property to be purchase will determine the necessary and required documents. It is important that the buyer carries out due diligence and familiarizes with these documents to avoid acquiring a bad title to the land or falling victim of fraud or deceit. The seller has the obligation of providing some of these documents to effectively validate the transaction.

They include:

  1. Survey plan/layout
  2. Land agreement
  3. Purchase receipt
  4. Certificate of occupancy/ Governor’s consent

Purchase receipt

This is the evidence of due payment of the purchase of the land. It is given to the buyer by the seller in acknowledgment of receipt of payment for the landed property after the sale of the property. It is also required at the point of registration of the land or property at the lands registry.

Land agreement/ Deed of Assignment

There are different types of agreements in a land transaction; contract for sale of land, sale of land agreement, deed of assignment and other types of deeds. While the contract for sale of land and sale of land agreement usually contain list of terms and conditions agreed to by the seller and buyer, the deed of assignment is the final agreement between the buyer and seller that validly transfers legal title.

It permanently transfers ownership of a landed property from the seller (assignor) to the buyer (assignee) subject to perfection. It also traces the origin of the landed property as well as other relevant conveyance deeds.

Survey plan

A survey plan is a land document that shows the location, size and boundaries of a landed property. It is used for search at the office of the Surveyor-General whether the property is under any government acquisition or committed area.

Certificate of Occupancy

Usually called the C of O. This is the most important document to land owners in a land or property transaction. It certifies the legal ownership status of any land in Nigeria irrespective of possession. It verifies the actual owner of any land in question. It is issued by the state government indicating that the owner who has acquired an interest to the land has been granted a statutory right if occupancy by the Governor of a state in accordance with applicable laws. A subsequent purchaser of the land need not obtain a new certificate of occupancy; all that will be required is a deed of assignment with the governor’s consent. Where the land is situated in a rural area, a customary right of occupancy is issued by the local government chairman.

These documents are crucial in land transactions for the purposes of conducting due diligence search, registration of title document and grant of certificate of occupancy.

By Adeola Oyinlade & Co

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 circumstances.

Adeola Oyinlade & Co provides help and offer advisory to both local and foreign clients on documents needed while buying landed property in Nigeria.

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HOW TO REGISTER INDUSTRIAL DESIGN IN NIGERIA

Section 12 of the Nigerian Patents & Designs Act, LFN 2004, provides that “any combination of lines and/or colours and three-dimensional form whether or not associated with colours is an industrial design, if it is intended by the creator to be used as a model or pattern to be multiplied by industrial process and is not intended solely to obtain a technical result.”

Industrial design is generally protected by registration with the Nigerian Patents and Designs Registry. The Patents and Designs Act governs the registration of industrial designs and according to the Act, an industrial design is registrable if it is new and not contrary to public order or morality.

Procedure to register an industrial design:

  1. Conduct a search to ensure that your design is new and not already registered by someone else.
  • Prepare your application with the necessary information and documents required for the application such as:
  • Name and address of the applicant(s) – individual or company.
  • Drawings, photographs, or representations of the design.
  •  A brief description of the design.
  • Power of Attorney (if filing through an agent).
  • Priority document (if claiming priority from an earlier application).
  • Obtain and complete the appropriate application form from the Nigerian Industrial Designs Registry.
  • Submit the completed application form along with the supporting documents to the Nigerian Industrial Designs Registry.
  • Pay the required filing fees at the time of submission.
  • Examination and publication by the Industrial Designs Registry to assess whether your design meets the necessary requirements for registration. Where it is satisfactory, design will be published in the Nigerian Industrial Designs Journal.
  • Opposition period of 2-months. If there are no objections or where resolved in applicant’s favour, the design will proceed to registration.
  • Registration and issuance of certificate. The Nigerian Industrial Designs Registry will issue a certificate of registration for the industrial design.

It is recommended to seek professional legal advice to ensure you have the most up-to-date and accurate information for registering an industrial design in Nigeria.

By Adeola Oyinlade & Co

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 circumstances.

Adeola Oyinlade & Co provides help and offer advisory to both local and foreign clients on industrial designs registration in Nigeria.

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PROCEDURE FOR OBTAINING A SPORTS BETTING LICENCE IN NIGERIA

Sports betting is regulated at the federal and state government levels in Nigeria. The type of sports betting activity a company wants to carry out will determine where the licence or permit can be obtained.The National Lottery Regulatory Commission (NLRC) empowered by the National Lottery Regulations 2007 (as amended) and National Lotteries Act 2015 is the regulatory agencyat the national level and otherstate lotteries board and equivalent state municipal laws like the Lagos state Lotteries Law 2004 and Lagos state Lotteries Board (LSLB).

The categories of licences or permits granted by the NLRC include; lottery licence, sports betting licence and promotional lottery licence. This article focuses on procedure for the grant of a sport betting permit.

Licencing Procedure:

Application Stage:

 A proposal is to be submitted to NLRC together with the necessary documents including:

  • a completed NLRC application form;
  • an application letter stating the intention of operating a sports betting company;
  • a non-refundable application fee of N2,000,000;
  • company incorporation documents;
  • evidence of trademark registration; and
  • evidence of registration with the Special Control Unit on Money Laundering.

Presentation and Review Stage: 

The applicant will be invited to make a presentation to the NLRC to justify the grant of the sports betting licence. This takes place with 10 working days after the end of the application stage

Provisional Approval stage: 

This is valid for 90 (ninety) days, subject to the fulfilment of the financial requirements and the following conditions which includes:

  • where the Company has foreign ownership and directors, evidence of proper immigration documents and registration with the Nigerian Investment Promotions Commission (NIPC);
  • connection of your online betting platform to NLRC monitoring and reporting platform; and
  • Copies of duly executed service level agreement with third party provider.

Final Approval stage: 

The NLRC will issue a final licence upon the expiration of the provisional approval period.   

Remote Operator Permit 

The applicants are remote Operators if they: 

 1. Operate gaming business outside Nigeria 

2. Seek to provide facilities for gaming in Nigeria Online 

If you already have a valid gaming licence issued by a foreign gaming regulator (your ‘Primary Licence’) and wish to legally offer your services to players in Nigeria, you are required to apply for a Remote Operator Permit, which is valid for Five (5) Years. 

In order to be granted a Nigerian Remote Operator Permit, you will need to successfully complete the National Lottery Regulatory Commission (NLRC) Permit Approval Process.  

The Nigerian Remote Game Operator is expected to adhere to the Permit Terms and Conditions as issued by the NLRC. These Terms and Conditions are subject to amendment from time to time to ensure consistency with the evolving dynamics of gaming and international best practices. 

The Nigerian Remote Operator Permit will:- 

1. Allow you to advertise Online Gaming Services to players in Nigeria including the publishing of print media in Nigeria subject to the advertising conditions 

2. Allow you to offer the following online games to players in Nigeria namely: casino games, bingo, slots, sports betting, and poker. 

3. Exempt you from any requirement to set up a local subsidiary of your business in Nigeria provided you complete a Non- Residence Registration Request to the Federal Inland Revenue Service of Nigeria (FIRS) which can be completed through the Dedicated System; 

4. Allow you to utilize payment services made available via the Dedicated System; 

5. Allow you to fully repatriate your revenue/funds from Nigeria provided that tax due and payable on player deposits has first been settled through the Dedicated System to the NLRC and to FIRS. 

6. Allow you to subscribe to affiliate programs

Conclusion

Any company interested in operating a sports betting business in Nigeria must apply and obtain a national sports betting license together with a gaming licence in the certain state it wishes to operate in.

By Adeola Oyinlade & Co

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 circumstances.

Adeola Oyinlade & Co provides help and offer advisory to both local and foreign clients in obtaining sports betting licenses in Nigeria.

Need help? Kindly contact us using the details below:

Email: [email protected]

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

HOW TO OBTAIN A TELECOMMUNICATION LICENCE IN NIGERIA

Telecommunication licence is a prerequisite for the operation of any telecommunication service in Nigeria. The Nigerian Communication Commission (NCC) is the issuing body of telecommunication licences in Nigeria empowered by the Nigeria Communication Act 2003.

All service providers in the telecommunication sector in Nigeria must adhere to all existing regulations and requirements such as licences, permits, written authorizations and assignments before carrying out full business operations.

Business licences in the telecommunication industry are of different categories; individual licence, class licence and unified licence. There are additional licences such as Value Added Service licence and Automated Vehicle Tracking Service licence.

Individual licences: These are license authorizations having terms, conditions, obligations, scope and limitation to the license service being provided. The licence is specific to the type of service being provided. Licensing processes under this category can take the form of “Auctioning” processes, “First come, first served” processes, “Beauty Contest” processes or a standard administrative procedure.

Class Licences:  These are under another category of business licenses in which the terms and conditions/obligations are common to all license holders. It may include conditions to carry out a specified activity. This license requires only registration with the NCC for applicants to commence operation.

Unified Licences: These fall under a separate business license category that allows the licensee to provide a bouquet of Telecoms services under a composite or unified license.

Requirements for a telecommunication licence:

  • Company Corporate Affairs Commission (CAC) incorporation documents
  • A certified true copy of applicant country’s Memorandum and Articles of Association (MEMART).
  • Certified True Copies (CTCs) of your applicant company’s CAC Forms on the particulars of the directors of your company as well as their passport photos.
  • 3 passport photos of your applicant company’s authorized representative.
  • Certificates of qualified technical staff where applicable.
  • An NCC license application form (2 copies).
  • A Tax Clearance Certificate.
  • A copy of your proposed Telecommunications service feasibility report.
  • Evidence of funding for the project.
  • Payment of a non-refundable administrative charge which is 5% of the relevant license fee.

– For investors seeking Automated Vehicle Tracking Service (AVTS) applicants henceforth must obtain a security clearance from the State Security Service (SSS) for the proposed service before applying for the license, as a condition precedent for the grant of license by the NCC. 

– For investors seeking Value Added Service (VAS) licenses which basically allow a business to provide content services using short code, the following must be presented:

  1. evidence of an agreement or Memorandum of Understanding (MOU) entered between the company and a VAS Aggregator;
  2.  alternatively, a copy of licenses duly issued by other regulatory agencies such as the Central Bank of Nigeria (CBN) for Mobile Money Operation Services (MMO) or the National Lottery Regulatory Commission (NLRC) for lottery/gaming/betting services.

In conclusion, the above is only provided as a guide. It is advised that prospective telecommunication operators should seek relevant and necessary professional legal guide.

By Adeola Oyinlade & Co

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 circumstances.

Adeola Oyinlade & Co provides help and offer advisory to both local and foreign clients in obtaining Telecommunication licenses in Nigeria.

Need help? Kindly contact us using the details below:

Email: [email protected]

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

THE CENTRAL BANK OF NIGERIA REQUIREMENTS TO OBTAIN FINTECH AND PAYMENT SOLUTION LICENCE IN NIGERIA

Introduction
Financial Technology (Fintech) is simply the use of innovative technology for financial transactions and services. Fintech and payment solution companies are major players in the financial sector providing digital financial business services such as, payment solutions, mobile payments, online payment gateways, digital savings and investment wallets and more. Examples in Nigeria are Piggyvest, Paystack, Paga, Opay, etc. The Central Bank of Nigeria (CBN) is the primary regulatory authority for the financial sector. CBN issues licences and prescribes guidelines that regulate financial institutions. Companies in the financial industry are required to obtain necessary applicable licences for their operations. However, licences to be obtained will depend on the services of the fintech. Categories of the CBN licensing include Switching and Processing; Mobile Money Operations; Payment Solution Services, Payment Solution Service Provider, Payment Terminal Service Provider, Super-Agent and Regulatory Sandbox.
This article will outline the CBN checklist of requirements for Fintech operational licences including:
• Switching and Processing Licence
• Mobile Money Operator (MMO) Licence
• Payment Solution Services (PSS) Licence
• Payment Solution Service Provider (PSSP) Licence
• Payment Terminal Service Provider (PTSP) Licence
• Super-Agent licence
• Regulatory Sand box

1. SWITCHING AND PROCESSING LICENCE
a. Incorporation documents;
b. Details of ownership and holding company structure (if applicable);
c. Tax Clearance Certificate (TCC) for 3 years (if applicable) and Taxpayers Identification Number (TIN) of the company;
d. Bank Verification Number (BVN), Curriculum Vitae (CV), and means of identification (ID) for the directors and top management (including one independent non-executive director, chairman, and managing director);
e. Business plan and product deployment methodology;
f. Requisite policies and framework;
g. Signed agreements with sub-agents, financial institutions, and business parties;
h. Evidence of payment card security certification and other relevant payment terminal certification.
i. Application fees etc.

2. MOBILE MONEY OPERATOR (MMO) LICENCE
a. TCC for three years (if applicable) and TIN of the company;
b. Details of ownership and holding company structure (if applicable);
c. Incorporation documents;
d. BVN, CV and means of ID of the directors and top management (including one independent non-executive director, chairman and managing director);
e. Business plan;
f. Requisite policies and framework;
g. Project deployment time; and
h. Signed agreements with its partners.
i. Application fees etc.

3. PAYMENT SOLUTION SERVICES (PSS) LICENCE
a. TCC for three years (if applicable) and TIN of the company;
b. Incorporation documents;
c. BVN, CV, and means of ID of the directors and top management (including one independent non-executive director, chairman, and managing director);
d. Requisite policies and framework;
e. Signed agreements with its sub-agents, financial institutions, and partners;
f. Minimum of 50 agents;
g. Evidence of payment card security certification and other relevant payment terminal certification; and
h. Project deployment methodology.
i. Application fees

4. PAYMENT TERMINAL SERVICE PROVIDER (PTSP) LICENCE
a. Tax Clearance Certificate (TCC) of three years (if applicable) and TIN of the company;
b. Incorporation documents;
c. BVN, CV, and means of ID of the directors and top management (including one independent non-executive director, chairman, and managing director);
d. Requisite policies and framework; and
e. Project deployment methodology.
f. Application fees etc.

5. PAYMENT SOLUTION SERVICE PROVIDER (PSSP) LICENCE
a. Tax Clearance Certificate (TCC) of three years (if applicable) and TIN of the company;
b. Incorporation documents;
c. BVN, CV, and means of ID of directors and top management (including one non-executive director, chairman, and managing director);
d. Signed agreements with its partners;
e. Requisite policies and framework; and
f. Evidence of payment card security certification and other relevant payment terminal certification.
g. Application fees etc.

6. REGULATORY SANDBOX
a. Incorporation documents;
b. Shareholding structure;
c. Project plan, business proposal, and
d. Outline of the strategy of the sandbox trial;
e. Evidence of patent rights (if applicable);
f. CV of directors and top management.
7. SUPER-AGENT LICENCE

Conclusion
Fintech and Payment solution providers in Nigeria must consider their specific services and carefully comply with the regulatory requirement for each licence to ensure that their businesses are in line with applicable laws and guidelines.

By Adeola Oyinlade & Co
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 circumstances.
Adeola Oyinlade & Co provides help and offer advisory to both local and foreign clients in obtaining Fintech and payment solution licenses in Nigeria.
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CONTRACTS, SPONSORSHIP, ATHLETE RIGHTS AND SPORTS LAW IN NIGERIA

Sports law in Nigeria involves laws and regulations that govern sports activities in the country such as the Constitution of the Federal Republic of Nigeria 1999 (as amended), The Labour Act, The National Sport Commission Act (formerly Decree No 34 of 1971), the Nigeria Football Association Act, National Institute for Sport Act and the Nigeria Boxing Board of Control Act. these Various legal frameworks are put in place to ensure fair play, protect athletes’ interests, and maintain the integrity of sports. There are different sports-specific regulating bodies or agencies in the country such as the Ministry of Youth and Sports Development, the Nigeria Football Federation (NFF), the National Lottery Regulatory Commission and others.

CONTRACTS IN SPORTS:

Contracts in sports or sports law contract is a term used to describe the legal contractual issues at work in the sports industry. Sports contract has in it the elementary principles of contract such as Competent parties, An offer, Acceptance of an offer, Consent of parties, Consideration, A lawful purpose, Mutual obligation, Meeting of minds, Transparency and accountability and In a form required by Law. Player contracts and agency contracts are common types of contracts used in sports sector, they are binding on the parties and specify obligations and services. The contracts however must be in accordance with relevant Nigerian laws.

SPONSORSHIP IN SPORTS:

Sports sponsorship is the financial support of a sport (be it an event, organization, or performer) by an outside entity (be it a person or an organization). It is a business arrangement whereby the sponsor (which could be any company) gives money to the sponsee (sports team, tournament, or athlete) in exchange for a specific set of rights. The sponsor essentially uses those rights to increase brand recognition, visibility, and customer loyalty, generating favorable public recognition (PR). 

ATHLETE RIGHTS:

The rights of an athlete are cut across all spheres, ranging from sports contracts to endorsement, sponsorship, agency, and many more. Examples of such rights include; Labor Rights, Image and Likeness Rights.

Sports law is an indispensable component of Nigeria’s sports industry.Advancing comprehensive sports law in Nigeria would ensure the protection of sportsmen and women’s rights and their careers, promoting respect for principles of natural justice and fair gameplay. Additionally, it would help encourage foreign and domestic investment in the sports sector.

By Adeola Oyinlade & Co

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 circumstances.

Adeola Oyinlade & Co provides help and offer advisory to both local and foreign clients on contracts drafting/review, sponsorship, athlete rights and sports law in Nigeria.

Need help? Kindly contact us using the details below:

Email: [email protected]

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

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