When NOTAP Registration Is Required in Nigeria
In Nigeria, many businesses enter into agreements that involve the transfer of foreign technology, intellectual property, or technical expertise. However, not all of these agreements are automatically valid for use or remittance under Nigerian law as some must first be registered with the National Office for Technology Acquisition and Promotion (NOTAP).
If your company works with foreign partners, investors, or licensors, here’s what you need to know.
What Is NOTAP?
The National Office for Technology Acquisition and Promotion (NOTAP) is the regulatory agency responsible for monitoring, evaluating, and registering technology transfer agreements between Nigerian companies and their foreign counterparts.
Its main goal is to ensure that:
i. Nigeria receives fair value for imported technology,
ii. local capacity is built through knowledge transfer, and
iii. foreign exchange is not remitted for non-qualifying or exploitative agreements.
When NOTAP Registration Is Required
Registration with NOTAP is mandatory for any agreement involving the use or transfer of foreign technology or intellectual property in Nigeria.
This includes agreements related to:
1. Software Licensing & Technology Services
i. Foreign-developed software used by Nigerian entities.
ii. SaaS, cloud computing, and fintech platforms where a foreign company owns the IP.
2. Franchise & Trademark Licensing
i. Use of a foreign brand, franchise model, or trade name in Nigeria.
ii. Payments such as royalties or franchise fees to foreign licensors.
3. Technical Know-How & Management Services
i. Foreign experts providing management, maintenance, or operational support.
ii. Technical assistance, installation, or training agreements linked to foreign expertise.
4. Engineering & Consultancy Services
i. Engineering design, feasibility, or project management handled by a foreign company.
ii. Any agreement requiring foreign technical input or design approval.
5. Royalty & IP Transfer Agreements
i. Patents, trademarks, or copyright licenses from foreign owners.
ii. Payments for IP usage or commercialization.
When to Register
NOTAP registration should be done within 30 days of executing the agreement.
Without registration, the Central Bank of Nigeria (CBN) will not approve foreign exchange remittance for fees such as:
1. Royalties,
2. Technical service fees,
3. Franchise payments, or
4. Software license fees.
When NOTAP Registration Is Not Required
You generally do not need NOTAP registration when:
1. The service provider is a Nigerian entity and no foreign IP or technology is transferred.
2. The agreement is purely for local consultancy or employment.
3. The service or product is developed in-house with no foreign ownership of IP.
4. Payments are made locally and do not involve forex remittance.
Why It Matters
Unregistered technology transfer agreements can:
1. Delay or block foreign payments,
2. Affect CBN compliance for foreign exchange,
3. Limit enforceability of contracts, and
4. Expose your company to regulatory sanctions.
Registering with NOTAP ensures regulatory compliance, forex approval, and legal protection for all parties.
At 618 Bees, we help Nigerian and foreign businesses draft, review, and register all technology transfer agreements in compliance with NOTAP, CBN, and IP regulations.
+2349017190079