Industrial Inspectorate Act and NOTAP Lecture Review

Practice questions covering the Industrial Inspectorate Act, asset valuation procedures, and the National Office for Technology Acquisition and Promotion (NOTAP) regulations.

What is the supervisory body for the Industrial Inspectorate Act?

The Industrial Inspectorate Division of the Federal Ministry of Industry.

What is the primary aim of the Industrial Inspectorate Act?

To allow companies to enjoy certain incentives and reliefs from tax when they incur capital expenditure.

To whom is the application made for incurring capital expenditure under the Industrial Inspectorate Act?

The Director of the Industrial Inspectorate Division of the Federal Ministry of Trade, Industry and Investments.

According to the transcript, any person proposing a new undertaking or additional expenditure must notify the director if the expenditure reaches what threshold?

$5,000,000$ or more.

Under Section $31$ of the Industrial Inspectorate Act, what form and how many copies are required for the application?

$2$ copies of Form $1$, obtainable from the Federal Ministry of Industry's Inspectorate Division.

What document does the Director issue if satisfied with the valuation of the property?

A certificate of acceptance.

Which government bodies are bound by the certificate of acceptance issued by the Director?

The Board of Customs and Excise and the Federal Board of Inland Revenue (FIRS).

What is the consequence of not obtaining a certificate of acceptance when expanding assets?

The company will pay full company's income tax under the Company's Income Tax Act instead of receiving an expenditure allowance or tax waiver.

What does the acronym NOTAP stand for?

National Office for Technology Acquisition and Promotion.

What is the primary regulatory function of NOTAP?

To regulate the transfer of foreign technology into Nigeria.

According to Section $5(2)$ of the NOTAP Act, within what timeframe must a contract for the transfer of foreign technology be registered?

Not later than $60$ days from the execution or conclusion of the agreement.

Is technology that is already readily available in Nigeria covered under the NOTAP Act?

No, any technology readily available in Nigeria is not covered.

According to Section $5$ Section $4(d)$ of the NOTAP Act, what are some matters that make a contract registrable?

Use of trademarks, right use of patented inventions, supply of technical expertise (plans, manuals), supply of engineering, supply of machinery and plants, provision of operating staff/managerial assistance, and training.

What is the effect of non-registration of a contract with NOTAP?

It does not render the contract void or unenforceable between the parties, but it frustrates the transfer or repatriation of fees and profits to aliens outside Nigeria through official channels.

What is the restriction regarding royalties through the Central Bank of Nigeria (CBN) under the NOTAP Act?

Repatriation of royalties through the CBN is disallowed unless a certificate of registration accompanies the application.

Which sectors are mentioned as having specific incentives and reliefs?

Agri sector, power sector, oil and gas sector, the communication industry, and export companies.