National Office for Technology Acquisition and Promotion (NOTAP) Registration Process and Fees

The National Office for Technology Acquisition and Promotion (NOTAP) regulates technology transfer agreements between Nigerian companies and foreign entities. Registering your contract with NOTAP is mandatory and must be done within 30 days of signing to avoid penalties. The fees for registration depend on the value of the agreement, ranging from N100,000 for contracts under N5 million to N20 million for contracts exceeding N10 billion. The registration ensures compliance, secures payment authorisations, and promotes local technological growth through capacity-building initiatives. Understanding these processes helps businesses avoid legal complications and penalties.

Industry Insights

In the globalised world of technology transfer, the National Office for Technology Acquisition and Promotion (NOTAP) plays a pivotal role in Nigeria.

If you are a business entity or innovator involved in acquiring foreign technology in Nigeria, understanding the NOTAP registration process and its associated fees is crucial.

This article explores everything you need to know about NOTAP, the registration process, fees, frequently asked questions, and common misconceptions that surround it.

By the end, you will have a clear roadmap to navigate this regulatory process effectively and ensure compliance with Nigeria’s legal framework.

Introduction to NOTAP
Why NOTAP Registration is Essential
What Agreements Must Be Registered?
Step-by-Step Process for Registering Technology Transfer Agreements
NOTAP Fees and Penalties Breakdown
Common Misconceptions About NOTAP Registration
Frequently Asked Questions (FAQs)
Conclusion

1. Introduction to NOTAP

The National Office for Technology Acquisition and Promotion (NOTAP) was established by the Nigerian government to regulate the transfer of technology between foreign and local companies.

It was created under the NOTAP Act (Cap N62 LFN 2004) with the goal of ensuring that Nigerian companies benefit maximally from imported technology.

NOTAP’s mission involves:

Facilitating efficient technology transfer to Nigerian entities.
Protecting Nigeria’s economic and technological interests in foreign collaborations.
Ensuring that technology transfers contribute to the development of local skills and knowledge.

In a fast-evolving technological landscape, it is important to comply with regulations to not only avoid penalties but also to safeguard your business from potential disputes.

Failure to register technology transfer agreements with NOTAP could mean you are unable to process payments or remit funds to foreign entities.

2. Why NOTAP Registration is Essential

Technology transfer agreements often involve significant payments from Nigerian companies to their foreign counterparts.

Such agreements cover a broad range of technological collaborations, from patented inventions to software licenses and engineering services.

Why is NOTAP registration necessary?

Legal Compliance: The NOTAP Act mandates that certain agreements involving foreign entities must be registered.
Payment Authorisation: Only agreements registered and approved by NOTAP are permitted to receive payments via the Central Bank of Nigeria (CBN) or other licensed financial institutions.
Technology Development: By ensuring the local capacity to adapt and replicate imported technology, NOTAP fosters technological advancement in Nigeria.

Without proper registration, foreign companies risk losing out on their payments, and local companies risk penalties.

3. What Agreements Must Be Registered With NOTAP?

NOTAP requires registration of specific agreements between Nigerian and foreign entities. These agreements, referred to as Technology Transfer Agreements, involve:

Trademark Licensing: The right to use foreign trademarks for manufacturing.
Patented Inventions: The rights to exploit patents held by foreign companies.
Technical Know-How: Transfer of expertise in areas such as manufacturing, engineering, or management.
Consultancy Services: Advisory and consultancy agreements related to technology.
Management Services: Involvement of foreign managers in Nigerian businesses.
Franchises: Agreements allowing Nigerian companies to replicate foreign business models.
Software Licensing: The use of foreign software solutions.

These agreements are critical for fostering local innovations while ensuring that Nigeria gains the most from foreign technology.

4. Step-by-Step Process for Registering Technology Transfer Agreements

The NOTAP registration process is straightforward, but it requires attention to detail. Below is the step-by-step guide:

Step 1: Submit the Agreement

The agreement between the Nigerian company and the foreign partner must be submitted for registration within 30 days of execution. Late submission attracts a penalty of N100,000.

Step 2: Pay the Presentation Fee

A presentation fee of N50,000 is required at the time of submission. This can be paid through the NOTAP Remita platform.

Step 3: Provide Supporting Documents

You will need the following documents:

A signed copy of the agreement.
Proof of payment (Remita receipt).
Tax clearance certificates.
Other supporting documents like audited accounts, invoices, etc.

Step 4: NOTAP Review

NOTAP reviews the agreement to ensure compliance with the NOTAP Act and guidelines. They examine:

Whether the technology to be transferred is beneficial and not readily available in Nigeria.
The pricing and terms of the agreement.
Capacity-building initiatives that will allow Nigerians to understudy the foreign experts.

Step 5: Approval or Denial

NOTAP may approve, modify, or reject the agreement based on its assessment. If rejected, modifications can be made and resubmitted. Once approved, a certificate is issued, and the agreement is considered legally binding.

5. NOTAP Fees and Penalties Breakdown

NOTAP charges a variety of fees, depending on the scope and value of the technology transfer agreement. Below is a detailed breakdown of the costs:

Registration Fees Schedule

Fixed Fees

Fee Type	Amount (Naira)
Presentation Fee	₦50,000
Penalty Fee	₦100,000

Registration Fees (Based on Contract Value)

Contract Value	Registration Fee
Under ₦5 million	₦100,000
₦5 million – ₦10 million	₦150,000
₦10 million – ₦20 million	₦250,000
₦20 million – ₦50 million	₦500,000
₦50 million – ₦100 million	₦1,000,000
₦100 million – ₦250 million	₦1,250,000
₦250 million – ₦500 million	₦1,500,000
₦500 million – ₦1 billion	₦1,750,000
₦1 billion – ₦1.5 billion	₦2,000,000
₦1.5 billion – ₦2 billion	₦2,500,000
₦2 billion – ₦2.5 billion	₦3,000,000
₦2.5 billion – ₦5 billion	₦5,000,000
₦5 billion – ₦10 billion	₦10,000,000
Above ₦10 billion	₦20,000,000

Note:

Registration fees are based on the contract value.
Penalty fee applies for late submission.
Presentation fee is a fixed amount.

6. Common Misconceptions About NOTAP Registration

There are several misunderstandings about NOTAP and the technology transfer registration process. Let us address the most common ones:

Misconception 1: All Foreign Contracts Must Be Registered

Not all contracts between Nigerian and foreign companies need to be registered. Only technology transfer agreements fall under NOTAP’s jurisdiction.

Misconception 2: Registration is Optional

Many businesses wrongly believe that registering with NOTAP is optional. The reality is that it is mandatory for all technology transfer agreements, and failure to do so can result in fines and payment difficulties.

Misconception 3: The Process is Too Complex

While the process may seem daunting, it is straightforward if you follow the guidelines. Many issues arise from incomplete submissions or failure to meet the 30-day deadline.

7. Frequently Asked Questions (FAQs)

1. What happens if I do not register my agreement with NOTAP?

Failure to register a technology transfer agreement means you cannot process payments through the Central Bank of Nigeria (CBN) or any licensed bank. It can also lead to fines and penalties.

2. How long does the registration process take?

The registration process typically takes 30 days once all documents are submitted correctly. Delays may occur if additional documentation is required.

3. Can I register an agreement after the 30-day deadline?

Yes, but you will incur a penalty fee of N100,000 for late submission.

4. Are there other services provided by NOTAP aside from registration?

Yes, NOTAP also offers technology advisory services, sales of publications such as directories of licensors, and guidelines on technology acquisition.

5. Can I get a refund for registration fees if my application is denied?

No, all fees paid to NOTAP are non-refundable, including the presentation fee and penalties.

8. Conclusion

In the landscape of technology transfer, the role of NOTAP is indispensable for both compliance and protection of national interests.

For businesses looking to collaborate with foreign entities, registering technology transfer agreements with NOTAP ensures the smooth flow of technology and financial transactions.

By following the outlined steps and staying updated on the fees and guidelines, businesses can avoid penalties, foster innovation, and contribute to Nigeria’s technological advancement.

Ensure you adhere to the NOTAP regulations, meet deadlines, and submit complete documentation to make the registration process seamless and beneficial for both local and international collaborations.