Operating a restaurant in Nigeria comes with a lot of legal and regulatory requirements aimed at ensuring public health, food safety, and fair business practices. For local entrepreneurs and foreign investors, understanding and adhering to these requirements is essential to running a compliant and successful restaurant in Nigeria.
Whether you own a fast food chain, a local kitchen/cottage outlet; a café shop; a bakery; a food truck; or a fine dining establishment, this comprehensive guide provides an in-depth look at the legal compliance requirements, the regulatory bodies, necessary documentation, and post-registration obligations you need to have at your finger tip. This guide is also useful to individuals offering catering services, as well as hotel owners offering restaurant services.
What Are the Regulatory Bodies Overseeing Restaurant Operators in Nigeria?
The Corporate Affairs Commission
TheCorporate Affairs Commission("the Commission") oversees the registration of business and non-business entities in Nigeria—from registration/incorporation to cessation/winding up. As a restaurant operator, the law requires that you register your business with the Commission within twenty-eight (28) days of commencement of business. This is the first regulatory compliance for all types of businesses.
Depending on the kind of outlet you want to establish, you can register a business name which is best suited for small kitchen/cottage outlets; a partnership—whether a general, limited partnership or limited liability partnership; or a limited liability company. See our article to know which business structure will best suit your restaurant business.
Note that, foreign investors/restaurant operators can only register a limited liability company with a minimum of 100million naira share capital.
Additionally, as a registered business entity, to keep the status of your business active on the Commission's Register of Businesses, it is essential to file your annual returns as and when due. Annual Returns filing with the Commission is not same as Annual Returns filing with the Revenue Service Agencies like Federal Inland Revenue Service (FIRS). It is a yearly update of a business' information with the Commission. Failure to file annual returns attracts penalties/fines that accrues every year.
The Federal Inland Revenue Service
TheFederal Inland Revenue Service(FIRS) is the body that regulates taxes and taxpayers in Nigeria. As a restaurant operator in Nigeria, you are liable to pay certain taxes to the government through the FIRS, as and when due.
In order to comply with this requirement, your business must be duly registered with the CAC, then you can obtain a tax identification number after registration with the FIRS. Some applicable taxes to be filed include, Value Added Tax (VAT) Companies Income Tax (CIT), Personal Income Tax (PIT). See our article on the types of tax payable depending on the kind of business entity.
National Agency for Food and Drug Administration and Control
Another important regulatory body that oversees the affairs of restaurant operators in Nigeria is theNational Agency for Food and Drug Administration and Control (NAFDAC).Matters relating to the hygiene practices of all food outlets, personnel hygiene, inspections etc., fall under the regulatory purview of NAFDAC.
NAFDAC Compliance Requirements for Restaurant Operators in Nigeria
Once registered with the Corporate Affairs Commission and the Federal Inland Revenue Service, the next compliance step for a restaurant operator in Nigeria is to observe the following Food Hygiene practices as part of NAFDAC compliance requirements:
- Ensure that you have obtained a food handler's certificate from either the State Ministry of Health or a recognized health facility. A food handler's test typically includes a blood test, sputum test, urine test, widal test, hepatitis etc.
- Ensure you have accurate documentation and/or credentials of all staff, whether food handlers, cleaners, waiters etc.
- Ensure you have a standard operating procedure document for various aspects of your business operations, including production, quality control and cleaning.
- Ensure compliance with NAFDAC's Food Hygiene Guidelines. Complying with NAFDAC's Food Hygiene guidelines cannot be dispensed with. Some aspects of the guidelines include; keeping clean indoor and outdoor environment for food, no polluted environment, avoid food contamination, disposing spoilt food/unsold food, designated rest room places/changing rooms, storing food at the right temperature and not handling food with bare hands among others.
It is essential to note that NAFDAC carries out routine inspections to fast food and restaurant outlets to ensure compliance with these guidelines. As a result of these inspections, many fast food outlets have been shut down due to non-compliance with NAFDAC hygiene guidelines.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
