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Establishment restrictions

NIGERIA

Since August 2003

Chapter Investment  |  Sub-chapter Other restrictive practices related to foreign investment
Nigerian Communications Act
Some legal requirements in Nigeria restrict foreign investment in digital trade. According to Art. 31 of the Nigerian Communications Act, no person shall operate a communication system or facility nor provide a communication service in Nigeria, unless authorized to do so. Internet Service Provision and Internet Exchange licences authorise the provision of data services. On the other hand, the provision of voice over Internet Protocol (VoIP) does not require a license.
Coverage Communication and telecommunication service providers, including data services
Establishment restrictions

NIGERIA

Reported in 2009

Chapter Investment  |  Sub-chapter Screening of investment and acquisitions
Investment policy
Under the current system, no investment approval is needed, but it is required that all investment with a foreign participation is registered with the Nigerian Investment Promotion Commission and are covered by the treatment and protection clauses of the Nigerian Investment Promotion Commission Act (sections 17 and 27). However, there are no reports of investment in telecom sector being blocked on national security grounds.
Coverage Horizontal
Source
  • UNCTAD, Investment Policy Review on Nigeria (2009), p. 23: http://unctad.org/en/docs/diaepcb20081_en.pdf
Establishment restrictions

NIGERIA

Since December 2013

Chapter Investment  |  Sub-chapter Screening of investment and acquisitions
Guidelines on Nigerian content development in information and communications technology
Multinational companies are required to provide a local content development plan for the creation of jobs, recruitment of local engineers, human capital development and value creation for the local ecosystem.
Coverage Information and communication technology service providers (including telecommunication sector)
Establishment restrictions

NIGERIA

Since December 2013

Chapter Investment  |  Sub-chapter Restrictions on ownership
Guidelines on Nigerian content development in information and communications technology
The guidelines on Nigerian content development in information and communications technology introduce a minimum share capitalisation for Original Equipment Manufacturers (OEMs) and Original Design Manufacturers (ODMs) of ICT products of 2 billion Nigerian Naira (approx. 10,000 USD) and 5 billion Nigerian Naira (approx. 25,000 USD) respectively. This constiutes a discrimination against foreign investment.
Coverage Equipment and design manufacturers of ICT products
Fiscal Restrictions

NIGERIA

Since January 2016

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
WTO Government Procurement Agreement (GPA)
Nigeria is not a member of the WTO Agreement on Government Procurement.
Coverage Horizontal
Fiscal Restrictions

NIGERIA

Since May 2017

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Executive Order "On support for local contents in public procurement by the Federal Government"
On 18 May 2017, the Federal Government of Nigeria established that all Nigerian ministries, departments and agencies will be obliged to grant preferential treatment to locals in the public procurement processes; this was done via an Executive Order signed by Acting President Yemi Osinbajo. The Executive Order specifies that 'Made in Nigeria' products are given preferential treatment in all public procurement processes concerning several goods and services, including information and commuication technology (ICT). According to the Order, "at least 40% of the procurement expenditure on these items in all [federal ministries] shall be locally manufactured goods or local service providers".
Coverage Several sectors, including the ICT sector
Fiscal Restrictions

NIGERIA

Since December 2013
Since May 2012

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Guidelines on Nigerian content development in information and communications technology

National Information Technology Development Agency (NITDA) Declaration
The Nigerian Federal Ministry of Communication Technology has promulgated the Guidelines on Nigerian Content in the ICT sector. The guidelines apply to state entities as well as private enterprises and individuals. One of the requirements is that Ministries and other government entities shall purchase all hardware products locally as well as source and procure software from only local and indigenous software development companies. If the capacity for developing such software does not exist locally, a Nigerian company should provide the procurement, installation and support of the software.

The Director General of the National Information Technology Development Agency (NITDA) declared that the procurement by public institutions of non-made-in-Nigeria computers, where certified local brands exist, would be an offence punishable by a prison term and fine, under the NITDA Act.
Coverage ICT sector
Sources
Fiscal Restrictions

NIGERIA

Reported in February 2015

Chapter Taxation & Subsidies  |  Sub-chapter Taxation on data usage
VAT
In Nigeria, an additional 2% VAT is applied to data services on top of the standard rate of 5%.
Coverage Data services
Fiscal Restrictions

NIGERIA

Reported in February 2016

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on online services
Burdensome tax regime
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) claims that different layers of government impose targeted and sometimes very high taxes on telecom operators in Nigeria which weigh down their operations.
Coverage Telecommunication sector
Fiscal Restrictions

NIGERIA

ITA signatory? I II

Chapter Tariffs and Trade Defence  |  Sub-chapter Applied tariffs on digital goods
Average MFN rate
10.02%
Weighted average MFN rate
9.47%
Maximum tariff rate
20.00%
Coverage rate of zero-tariffs
1.06%

Coverage: Digital goods
Sources

Trading restrictions

INDIA

Reported in March 2018

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
De minimis rule
According to India's de minimis rule, samples and gifts not exceeding 103 SDR / 10000 INR / USD 150 in value are exempted from taxes and duties collected by customs.
Coverage Horizontal
Trading restrictions

INDIA

Since 2000

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
Information Technology Act, 2000
In 2011, the Reserve Bank of India restricted export-related payments for goods and services through online payment gateways. PayPal had to limit payments for export related payments above 500 USD. In 2014, the bank also imposed a requirement for online transactions by credit cards for the purchase of goods and services within India. They now have to be done within the country and be transacted in the local currency.
Coverage Payment services
Trading restrictions

INDIA

Since 2013

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
New Company Act (Law No. 18 of 2013)
Foreign companies (including those relating to B2B, B2C ecommerce, data interchange and other digital supply transactions, web based marketing, database services, online services such as telemarketing, telecommuting, telemedicine, education and information research and all related data communication services) even when not incorporated in India should register in India according to section 2(42) of the new Companies Act of 2013 when they are engaged in business in the country.
Coverage Foreign companies
Establishment restrictions

INDIA

Reported in 2014

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
Foreign Exchange Management
Act 1999 (“FEMA”)
India's policy on foreign investment permits FDI up to 100% in e-commerce activities, but the policy applies only to companies engaged in B2B e-commerce. B2C retail trading, in any form by means of e-commerce, is not permissible for companies with FDI and engaged in the activity of single brand retail trading or multi-brand retail trading. Exceptions were introduced in 2015 for single brand retailers that meet certain conditions, including the operation of physical stores in India. This narrow exception limits the ability of the majority of potential B2C electronic commerce foreign investors to access the Indian market. Additionally, in March 2016, the Indian government clarified that B2B e-commerce must not have more than one vendor account for more than 25% of sales, and must not indirectly or directly influence the sale price of goods sold.
Coverage B2C e-retailers
Trading restrictions

INDIA

Reported in 2017

Chapter Standards  |  Sub-chapter Encryption
Department of Telecommunication (DoT) License with Internet Service Providers (ISPs)
India’s encryption regulations require firms to use a 40-bit or lower standard encryption to secure digitally transmitted information, while most firms use much stronger standards, ranging from 128-bit to 256-bit. To use more sophisticated (and therefore more secure) cryptography, firms must procure a license. Firms also report that encryption standards differ from one regulatory agency to another.
Coverage Horizontal