NOTAP & the changing face of MNE's business

Is the management services agreement (MSA) at risk?

Whilst the current regulatory revival, awakening or fervour is understandable, it must be realised that this is making existing and prospective investors nervous

The multinational enterprise (MNE) is an organization that owns or controls production of goods or services in one or more countries other than their home country. It is usually a large corporation which produces or sells goods or services in various countries:

·         Importing and exporting goods and services

·         Making significant investments in a foreign country

·         Buying and selling licenses in foreign markets

·         Engaging in contract manufacturing—permitting a local manufacturer in a foreign country to produce their products

·         Opening manufacturing facilities or assembly operations in foreign countries

When the MNEs transfer services or technology or sell licences to a Nigerian subsidiary or unrelated local recipient or beneficiary in Nigeria, such transfers naturally trigger the oversight of the National Office for Technology Acquisition and Promotion (NOTAP).

The NOTAP Act Cap N62 Laws of the Federation 2007 as well as the Revised Guidelines made thereunder, provide the regulatory framework for the regulation of transfer of technology and/or expertise between offshore service providers and Nigerian companies.

The NOTAP Act designates NOTAP as the regulatory agency charged with oversight of Agreements involving transfer of technology/provision of expertise which are not locally available. The NOTAP is under the supervision of the Ministry of Science & Technology. It is no doubt one of the most technical and professional agencies in Nigeria. Based on available information, it registered a total of 1,237 technology agreements over the period of 1999 to 2009 covering agriculture, solid mineral and chemical, engineering and service industries.

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