Regulatory Environment of Business in Nigeria

This set of flashcards covers the vocabulary and key regulatory agencies governing business activities in Nigeria, including their roles, establishing decrees, and functions.

Promotion of Social Welfare

An objective of business regulation that aids the redistribution of income through payment of social benefits, pensions, and subsidies, achieved via taxes.

Corporate Affairs Commission (CAC)

Established by the Companies and Allied Matters Decree (CAMD) 1990 to regulate and supervise the formation, incorporation, management, and winding-up of companies in Nigeria.

Security and Exchange Commission (SEC)

Established in 1979 as a regulatory apex organization to supervise the capital market sub-sector and protect against abuses like insider information.

Nigeria Stock Exchange (NSE)

An entity in the secondary sub-sector of the capital market responsible for providing facilities for the purchase and sale of shares and controlling the quotation of stocks.

Central Bank of Nigeria (CBN)

Established in 1958 and operational in 1959, its principal duty is the regulation of the banking system and managing the volume, cost, and availability of money.

Nigeria Deposit Insurance Corporation (NDIC)

Established by Decree No. 22 of 15th June, 1988, to insure the deposit liabilities of licensed banks and ensure their soundness and solvency.

National Insurance Commission (NAICOM)

The agency that regulates insurance business under the Insurance Act of 1991, founded on the principle of utmost good faith.

Utmost Good Faith

The dominant principle regulating the conduct of all insurance practitioners and companies in Nigeria.

Standard Organization of Nigeria (SON)

An agency responsible for ensuring that products of Nigerian industries and imports meet national and international standards to prevent the distribution of substandard goods.

National Agency for Food and Drug Administration and Control (NAFDAC)

Established by Decree 15 of 1993 to promote and protect public health by regulating processed foods, drugs, cosmetics, medical devices, and chemicals.

Nigerian Exports Promotion Council (NEPC)

Established in 1988 to assist companies in entering or expanding into foreign markets and to administer the export development fund.

Federal Environmental Protection Agency (FEPA)

Established in 1988 as the apex institution for ensuring high-quality environment through policies, monitoring, and pollution abatement regulations.

Environmental Impact Assessment (EIA) Regulation

A FEPA requirement that sponsors of industrial projects undertake a study to assess the project's impact on the environment.

Industrial Development Coordinating Committee (IDCC)

A one-step approval agency made up of seven ministries designed to provide speedy pre-investment approvals for business enterprises within sixty days.

National Office for Technology Acquisition and Promotion (NOTAP)

Established by Decree 82 of 1992 to facilitate the acquisition of technology by registering contracts for the transfer of technology into Nigeria from abroad.

Raw Materials Research and Development Council (RMRDC)

Established by Decree No 39 of 1987 to expedite industrial development through the utilization of locally available raw materials.

Industrial Development Centre (IDC)

Federal centers established in every state to provide extension services, technical training, and consultancy to small and medium scale enterprises.