A Review of the Business Facilitation Act 2022

1. INTRODUCTION

The Business Facilitation (Miscellaneous Provisions) Bill2 (the "Business Facilitation Act" or "BFA") was signed into law on the 14th of February 2023. The bill, now an Act is an initiative of the Presidential Enabling Business Environment Council ("PEBEC") charged with the responsibility of easing bureaucratic constraints and bottlenecks to doing business in Nigeria. PEBEC has worked collaboratively with the Nigerian Investment Promotion Council to ensure automation, regulatory reforms, trade/port reform and legislative/judicial reforms3 in Nigeria.

The BFA is divided into eleven sections4 which set out key changes required in the Nigerian business sector through instruments of transparency, reduction in regulatory bottlenecks and easy business registration. The law highlights some key elements aimed at ensuring this outcome:

  • The Act mandates all Ministries, Departments and Agencies (MDAs) to publish a complete and comprehensive list of requirements for obtaining products and services in such MDA which includes permits, and licenses etc.5 Thus, whenever there is conflict between a published list of requirements and an unpublished list, the published list shall prevail.6
  • Whenever an applicant makes an application to an MDA, and such MDA refuses or neglects to communicate approval or rejection within the stipulated time, such application shall be deemed approved7.
  • Section 5 of the Act introduces "One Government". One Government is a programme aimed at ensuring seamless service delivery across MDAs in record time. It provides a fast solution to applicants who require services from two or more MDAs by ensuring they collaborate processes in products and services delivery. One Government is like a one-stop shop that provides seamless service across several MDAs whenever an applicant's requirement cuts across different MDAs.
  • The BFA stipulates that all MDAs should embed a Service Level Agreement ("SLA") in their processes. The SLA will serve as a contract between the MDA and each applicant. When signed, it will be binding on both parties, and it will further ensure products and services are delivered at the agreed time.8
  • The BFA mandates all ports to run a 24-hour operation. This is aimed at improving their profitability and eliminate the losses incurred in the past due to Nigerian ports not operating at night.9
  • The Act expressly prohibits touting in ports, it further ensures that staff who are not on duty are not allowed in and around the port except with a valid ID and permit for such entry.
  • The Act provides for a new single interphase wherein all MDAs in the port will capture, track and record information on all goods arriving and departing from Nigeria and then, transmit captured information to the head of the relevant offices and the National Bureau of Statistics weekly.10

The remaining part of the BFA is a Schedule which is divided into twenty-one parts; each part amending a statute relating to the Nigerian Business sector. The remaining part of this article will focus on the amendment of each Act by the BFA.

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