An Overview of the Role of Nigeria’s NOTAP in the Promotion of Technology Transfer and Intellectual Property
The National Office for Technology Acquisition and Promotion (NOTAP), formerly known as National Office of Industrial Property (NOIP) until 1992, is a parastatal under the Federal Ministry of Science and Technology. It was established by Decree No. 82 of 1992 with the name change intended to align with the agency’s expanded functions.
NOTAP is responsible for monitoring, regulating, and facilitating the inflow of foreign technology in Nigeria. NOTAP’s mandate is implemented primarily through the evaluation and registration of technology transfer agreements which are required to be submitted to NOTAP within 30 days from the effective date. As a corporate body, NOTAP is responsible for implementing the acquisition, promotion, and development of technology while addressing any shortcomings in the acquisition of foreign technology.
In line with globalization and liberalization of the world economy, NOTAP has shifted its emphasis from regulatory and control to promotional and developmental roles. The new area of focus is aimed at attracting foreign technologies and investment and the development of indigenous technology. NOTAP was therefore established as one of the main instruments to carry out the National Policy on Technology Development. Part of this policy stipulates encouraging the flow of technology into the country to strengthen industrial development and encourage domestic enterprises to acquire foreign technologies suitable to the local environment.
The functions of NOTAP encompass the following:
- Evaluation/registration of technology transfer agreements;
- Patent and promotion of intellectual property;
- Technology advisory and support services;
- Commercialization of R& D (Research and Development) results;
- Research industry linkage;
- Maintenance of a compendium on R&D activities in the country;
Registration of Technology Transfer Agreements
In the context of NOTAP’s activities, a key aspect is the registration of Technology Transfer Agreements and contracts entered for the transfer of technology to Nigerian parties. These agreements are described as legally binding documents that contain the terms and conditions under which technical skills, specialized knowledge, technical know-how, and other proprietary rights for the manufacturing of goods and services are transferred from one individual, enterprise or organization to another person, enterprise or organization through licensing and other contractual arrangements that are mutually beneficial to both parties. The agreements that are subject to NOTAP’s regulation in Nigeria include agreements relating to hotel management, trademarks license, software license, value added services, shared services, management services, technical know-how and franchise. Prior to registration, NOTAP evaluates these agreements in terms of their legal, economic and technical benefits to the Nigerian economy.
Thus, where the transfer of technology involves:
- The use of trademarks;
- The right to use patented inventions;
- The supply of technical expertise in the form of the preparation of plans, diagrams, operating manuals or any other form of technical assistance of any description whatsoever;
- The supply of basic and detailed engineering;
- The supply of machinery and plant, and
- The provision of operating staff or managerial assistance and the training of personnel,
Such contracts must be registered otherwise, by Section 7 of NOTAP Act, any profit or benefit due under the contract to the foreign partners cannot be repatriated or transferred to them through the Central Bank of Nigeria. However, certain technology transfer agreement cannot be registered with NOTAP, this involves when the technology is obsolete or freely available in Nigeria, price is not commensurate to the technology acquired and where the contract requires the transferee to submit to a foreign jurisdiction in the event of a dispute.
Procedure for Registration
Application for the registration of technology transfer agreement with NOTAP is made in the applicant’s company letterhead paper directed to the Director of NOTAP within thirty (30) days from the effective date of the agreement. Section 5 of the NOTAP Act provides that “every contract or agreement which on the date of the coming into force of this Act had been entered into by any person in Nigeria and which still has an effect on the commencement of this Act in relation to any matter shall be registered with the National Office in the prescribed manner not later than six months after the commencement of this Act”.
Section 5(3) goes further to state that every application for the registration of a contract or agreement shall be addressed to the Director and shall be accompanied by certified true copies of the contract and agreement and by all other related documents annexed thereto.
Applicants are required to make payment of a presentation fee of N50, 000 (Fifty Thousand Naira) through the NOTAP online portal to commence registration, accompanied with the following information and documents:
- A copy of the duly completed application form.
- Certificate of Incorporation with the Corporate Affairs Commission.
- Memorandum and Article of Association of the company.
- A duly completed TAA Pre-Qualification Form.
- Taxpayer Identification Number (TIN).
- A draft copy of the Technology Transfer Agreement to be registered.
- A copy of the duly completed NOTAP questionnaires for different sectors.
- A duly completed copy of the Monitoring Form.
- A copy of the feasibility study report of the company.
- Annual audited accounts for the preceding three years.
- Evidence of tax payment for the preceding three years.
- Profile of the technical partner.
- Performance bond for advanced payment.
- A comprehensive training programme which must include the number of personnel, skill, or knowledge to be acquired.
- Approval or licenses obtained from the relevant authorities and bodies such as the Nigerian Communication Commission (NCC) for agreements on communication etc., where applicable.
These submissions may now be made online only as there is an automated process readily available.
It should be noted that an earlier registration which has been granted may be cancelled if the Director of NOTAP is satisfied that such contract or agreement has, after the registration thereof, been amended or modified in contravention of the provisions of the NOTAP Act, he shall give notice in writing to the parties concerned of his intention to cancel the certificate of registration. This decision, however, may be appealed by the applicant to the Governing Council of NOTAP. Further and final appeal may be made to the Federal High Court.
Patent and Promotion of Intellectual Property
Another function of the NOTAP is to assist in the patenting of all inventions and innovations carried out by government-funded research institutes and others in the private sector. Although the application for the grant of patent is made to the registrar of Patent and Industrial designs which is under the Federal Ministry of Commerce, NOTAP through its information network provides the following services:
- Link the inventors with Patent Offices all over the world;
- Assist inventors in drafting patent applications covering the invention in question;
- Process patent application through Industrial Property Offices.
In conclusion, the National Office for Technology Acquisition and Promotion (NOTAP is a corporate body with a mandate to implement the acquisition, promotion, and development of technology and at the same time correct certain imperfections in the acquisition of foreign technology into the country. Over time, NOTAP has shifted its focus to a more promotional and developmental role, aiming to attract foreign technologies and investments while fostering the growth of indigenous technology. Through these activities, NOTAP supports technology development, protects intellectual property, and contributes to the economic growth of Nigeria.
References
- “Government regulation of business in Nigeria”, Lexology, January 4 2021
- NOTAP- National Office for Technology Acquisition and Promotion, NOTAP
- NOTAP Reforms – Automation of Registration Process of Technology Transfer Agreements, Aluko & Oyebode, September 2019.
- NOTAP Act – Policy and Legal Advocacy Centre
For further discussion and assistance with filing any of your organization’s compliance returns to the Corporate Affairs Commission, as well as providing you with Board Evaluation and Nominee services, please contact us at contact@firstfiduciary.ng or any of the team member below:
Frances Nwakobi-Onuigbo
frances.nwakobi@firstfiduciary.ng
+234 803 738 4994
Elizabeth Adedayo
elizabeth.adedayo@firstfiduciary.ng
+234 810 465 2726
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