Country Risk Profiles

Download all data excel  
Filter by timber species
Filter by Source Types

List of risks by indicator

Risks are listed below and organised under the relevant indicator. Click on the risk below for details on the specifc risk, mitigation options and the related legal requirements.
  • Specified Risks
  • Low Risks
  • Not Applicable
Legal rights to harvest
1.1 Land tenure and management rights
  • Land tenure Conflicts 
  • Individuals living on the land do not hold Certificate of Occupancy 
1.2 Concession licenses
  • The standards stipulated in the concession allocation procedures are infringed 
1.3 Management and harvesting planning
  • Lack of forest management plans 
1.4 Harvesting permits
  • Logging without harvesting permit or Out Turn Volume system 
  • Harvesting permits are issued without following legal requirements 
1.5 Payment of royalties and harvesting fees
  • Non-payment of fees and royalties 
  • Cheating in tariff tables to pay less fees and royalties
1.6 Value-added taxes and other sales taxes
  • VAT is not paid
1.7 Income and profit taxes
  • Nonpayment of income and profit taxes 
1.8 Timber harvesting regulations
  • Harvesting regulation being violated (e.g., soil, young standing trees and seedlings are damaged during harvesting; vegetation is destroyed during road construction for transportation of logs) 
1.9 Protected sites and species
  • Logging in the National Parks and protected areas 
  • Illegal logging of protected species without a permit 
1.10 Environmental requirements
  • Harvesting is performed without Environmental Impact Assessment 
  • Waste left by logging operators 
1.11 Health and safety
  • Obligations relating to the safety of the workers are not respected (no personal protective equipment; no health service centers to provide medical examinations before employment; no periodic medical examinations)
1.12 Legal employment
  • Foreign workers work without required permission 
  • Forest companies hire workers illegally
  • The workforce engaged in forestry operations does not conform with the minimum number of staff required to participate in PenCom Scheme 
1.13 Customary rights
  • Individuals living on the land do not hold Certificate of Occupancy
1.16 Classification of species, quantities, qualities
  • False declarations are made regarding species and their volume on transport permits
1.17 Trade and transport
  • Some unregistered vehicles may be engaged in movement of logs which have been illegally harvested 
1.18 Offshore trading and transfer pricing
  • Transfer pricing laws are not followed 
1.19 Custom regulations
  • Transport documents do not contain required information 
  • Export of non-processed logs and sawn wood 
  • Illegal timber export 
1.20 CITES
  • CITES species are exported without required permit
  • CITES permits are illegally issued 
  • Rosewood (Pterocarpus erinaceus) - illegal export of suspended CITES species
1.23 Legal Registration of Business
  • Companies operate without legal registration of business 
1.24 Environmental Requirements for Processing
  • Processing is performed without Environmental Impact Assessment
1.26 Health and Safety in the Timber Processing Sector
  • Obligations relating to the safety of the workers are not respected (no personal protective equipment; no health service centers to provide medical examinations before employment; no periodic medical examinations) 
1.27 Legal Employment in The Timber Processing Sector
  • Foreign workers work without required permission 
  • Forest companies hire workers illegally 
  • The workforce engaged in forestry operations does not conform with the minimum number of staff required to participate in PenCom Scheme 
1.1 Land tenure and management rights
Last updated on 2021-12-07 Land tenure Conflicts  Specified RISK
According to a study in the Northern Nigeria (Norwegian Refugee Council, 2019) that people, especially in rural areas have developed practices and markets by which to gain access to and transfer claims to land, regardless of legal requirements. After the violence in Northern Nigeria (2010-2017), which displaced over two million people, land tenure conflicts have increased. Procedures to obtain land tenure rights are complicated, Nigeria ranks 17... VIEW MOREAccording to a study in the Northern Nigeria (Norwegian Refugee Council, 2019) that people, especially in rural areas have developed practices and markets by which to gain access to and transfer claims to land, regardless of legal requirements. After the violence in Northern Nigeria (2010-2017), which displaced over two million people, land tenure conflicts have increased. 
Procedures to obtain land tenure rights are complicated, Nigeria ranks 179th world country in the ease of registering land. This depicts low level of innovation and inefficiency in the land registration process in Nigeria (Isaac et al., 2019).
The process of obtaining a Certificate of Occupancy is very tedious and time consuming, especially at the rural levels. This implies that ownership of forest resources in Free Areas is fluid and feeble which poses a risk of people being dispossessed from their lands when there are conflicting interests.
Unlimited powers of the State Chief Executives to ‘de-reserve’ or exploit forests without recourse to predefine management objectives.
Insecurity of tenure rights, especially for non-indigenes whose land could be easily usurped, especially without a Certificate of Occupancy. The non- indigenes more often than not have access to the land on a temporary basis within which time might fall short of the gestation period of the trees on their land.
Illegal land grabbing by foreign investors were documented in Nigeria (Isaac et al., 2019). Most lands grabbed in West Africa were profit driven (by biofuel investors) and were made under the guise of using the lands acquired for agricultural investments. 
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Business Registration Certificate (Certificate of Incorporation)
Valid business registration documents shall exist
2
Verify Concession license agreement
For Forest Reserves
3
Verify Harvest permit (Block Permit)
For Forest Reserves or Free Areas
4
Verify Forest Management plan
For Forest Reserves
5
Verify Harvest Permit Payment (Stumpage) Invoice
For Forest Reserves or Free Areas
6
Verify Certificate of Occupancy
For Free Areas
7
Verify Right of Occupancy
For Free Areas
8
Verify Agreement by all stakeholders entitled to the land
For Free Areas
9
Consult Relevant Land Use and Allocation Committee
Consult with relevant Land Use and Allocation Committee to confirm that legal status of the operation or rights for conducting the established activities are not subject to court orders or other legally established decisions to cease operations.
10
Visit Harvesting site
Inspections of harvesting site shall confirm that harvesting takes place within property limits
Description of legal requirements
Land tenure rights and title shall be clearly identified and issued according to legal requirements. Certificate of Ocupancy shall be issued for people living on the land
VIEW MORE
The ownership of forests is either by the government (i.e., Forest Reserves) or by Private citizens by virtue of inheritance, rights of occupancy or Certificate of Occupancy (i.e. Free Areas). 
Based on the Land Use Act of 1978, lands in Nigeria belong to the State Governments, implying that they have the primary responsibility for managing Forest Reserves. National parks are an exception and are controlled by the Federal Government. In Nigeria, lands are invariably held in trust by the State governments for the citizens. In each State a Land Use and Allocation Committee shall be established. In effect, the State government leases lands to private individuals while communal lands are held in trust for the people by the head of the community. 
The early approach to Forestry Management in Nigeria provided a uniform scenario in the management of forest areas. As it stands today, there are 36 states in the Country and a Federal Capital Territory, all of which have autonomy to manage their forests based on their aspirations and peculiarity. However, there is similarity in context as the States were derived from Regional Governments and inherited the same basic forestry principles and practices. By implication, all states in the country follow similar land tenure and management regulations in respect to Forest Management.
Statutory right of occupancy. Under the Land Use Act, individuals and entities can obtain a statutory right of occupancy for urban and non-urban land. The Governor may, in respect of land, whether or not in an urban area, grant statutory rights of occupancy to any person for all purposes and grant easements appurtenant to statutory rights occupancy. The Governor may waive all or any of the covenant or conditions applying to a right of occupancy. Statutory occupancy rights are granted for a definite term, which is set forth in the Certificate of Occupancy. Recipients of certificates of occupancy are obligated to pay the state for any unexhausted improvements (i.e., improvements with continuing value such as a building or establishing irrigation system) on the land at the time the recipient takes possession and must pay rent fixed by the state. Rights are transferable with the authorization of the state governor (Land Use Act 1978).
Customary right of occupancy. State governments may grant customary rights of occupancy to land in any non-urban area to any person or organization for agricultural, residential, and other purposes, including grazing and other customary purposes ancillary to agricultural use. The term for customary rights (which is contained in the application form and not the legislation) is 50 years and may be renewed for a second 50-year term. Recipients of customary rights of occupancy must pay annual tax on the land and cannot transfer any portion of the rights absent approval of the governor (for sales of rights) or the local government (other transfers) (Land Use Act 1978; Kuruk n.d.).
 
Legally required documents
Applicable legislation
VIEW LESS
1.1 Land tenure and management rights
Last updated on 2021-12-07 Individuals living on the land do not hold Certificate of Occupancy  Specified RISK
According to a study in the Northern Nigeria (Norwegian Refugee Council, 2019) that people, especially in rural areas have developed practices and markets by which to gain access to and transfer claims to land, regardless of legal requirements. After the violence in Northern Nigeria (2010-2017), which displaced over two million people, land tenure conflicts have increased. Procedures to obtain land tenure rights are complicated, Nigeria ranks 17... VIEW MOREAccording to a study in the Northern Nigeria (Norwegian Refugee Council, 2019) that people, especially in rural areas have developed practices and markets by which to gain access to and transfer claims to land, regardless of legal requirements. After the violence in Northern Nigeria (2010-2017), which displaced over two million people, land tenure conflicts have increased. 
Procedures to obtain land tenure rights are complicated, Nigeria ranks 179th world country in the ease of registering land. This depicts low level of innovation and inefficiency in the land registration process in Nigeria (Isaac et al., 2019).
The process of obtaining a Certificate of Occupancy is very tedious and time consuming, especially at the rural levels. This implies that ownership of forest resources in Free Areas is fluid and feeble which poses a risk of people being dispossessed from their lands when there are conflicting interests.
Unlimited powers of the State Chief Executives to ‘de-reserve’ or exploit forests without recourse to predefine management objectives.
Insecurity of tenure rights, especially for non-indigenes whose land could be easily usurped, especially without a Certificate of Occupancy. The non- indigenes more often than not have access to the land on a temporary basis within which time might fall short of the gestation period of the trees on their land.
Illegal land grabbing by foreign investors were documented in Nigeria (Isaac et al., 2019). Most lands grabbed in West Africa were profit driven (by biofuel investors) and were made under the guise of using the lands acquired for agricultural investments. 
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Business Registration Certificate (Certificate of Incorporation)
Valid business registration documents shall exist
2
Verify Concession license agreement
For Forest Reserves
3
Verify Harvest permit (Block Permit)
For Forest Reserves or Free Areas
4
Verify Forest Management plan
For Forest Reserves
5
Verify Harvest Permit Payment (Stumpage) Invoice
For Forest Reserves or Free Areas
6
Verify Certificate of Occupancy
For Free Areas
7
Verify Right of Occupancy
For Free Areas
8
Verify Agreement by all stakeholders entitled to the land
For Free Areas
9
Consult Relevant Land Use and Allocation Committee
Consult with relevant Land Use and Allocation Committee to confirm that legal status of the operation or rights for conducting the established activities are not subject to court orders or other legally established decisions to cease operations.
10
Visit Harvesting site
Inspections of harvesting site shall confirm that harvesting takes place within property limits
Description of legal requirements
Certificate of Ocupancy shall be issued for people living on the land
VIEW MORE
The ownership of forests is either by the government (i.e., Forest Reserves) or by Private citizens by virtue of inheritance, rights of occupancy or Certificate of Occupancy (i.e. Free Areas). 
Based on the Land Use Act of 1978, lands in Nigeria belong to the State Governments, implying that they have the primary responsibility for managing Forest Reserves. National parks are an exception and are controlled by the Federal Government. In Nigeria, lands are invariably held in trust by the State governments for the citizens. In each State a Land Use and Allocation Committee shall be established. In effect, the State government leases lands to private individuals while communal lands are held in trust for the people by the head of the community. 
The early approach to Forestry Management in Nigeria provided a uniform scenario in the management of forest areas. As it stands today, there are 36 states in the Country and a Federal Capital Territory, all of which have autonomy to manage their forests based on their aspirations and peculiarity. However, there is similarity in context as the States were derived from Regional Governments and inherited the same basic forestry principles and practices. By implication, all states in the country follow similar land tenure and management regulations in respect to Forest Management.
Statutory right of occupancy. Under the Land Use Act, individuals and entities can obtain a statutory right of occupancy for urban and non-urban land. The Governor may, in respect of land, whether or not in an urban area, grant statutory rights of occupancy to any person for all purposes and grant easements appurtenant to statutory rights occupancy. The Governor may waive all or any of the covenant or conditions applying to a right of occupancy. Statutory occupancy rights are granted for a definite term, which is set forth in the Certificate of Occupancy. Recipients of certificates of occupancy are obligated to pay the state for any unexhausted improvements (i.e., improvements with continuing value such as a building or establishing irrigation system) on the land at the time the recipient takes possession and must pay rent fixed by the state. Rights are transferable with the authorization of the state governor (Land Use Act 1978).
Customary right of occupancy. State governments may grant customary rights of occupancy to land in any non-urban area to any person or organization for agricultural, residential, and other purposes, including grazing and other customary purposes ancillary to agricultural use. The term for customary rights (which is contained in the application form and not the legislation) is 50 years and may be renewed for a second 50-year term. Recipients of customary rights of occupancy must pay annual tax on the land and cannot transfer any portion of the rights absent approval of the governor (for sales of rights) or the local government (other transfers) (Land Use Act 1978; Kuruk n.d.).
 
Legally required documents
Applicable legislation
VIEW LESS
1.2 Concession licenses
Last updated on 2021-12-07 The standards stipulated in the concession allocation procedures are infringed  Specified RISK
The corruption rating in Nigeria is not encouraging, with a score of 25 out 100 in 2020 (Corruption Perception Index, 2020). The forestry sector is not particularly shielded from this corruption matrix. Consequently, the standards stipulated in the allocation procedures may frequently be infringed for some pecuniary reasons.Discrepancies in the allocation of forest concessions do occur due to lack of proper demarcation. In most states, there are ... VIEW MOREThe corruption rating in Nigeria is not encouraging, with a score of 25 out 100 in 2020 (Corruption Perception Index, 2020). The forestry sector is not particularly shielded from this corruption matrix. Consequently, the standards stipulated in the allocation procedures may frequently be infringed for some pecuniary reasons.
Discrepancies in the allocation of forest concessions do occur due to lack of proper demarcation. In most states, there are no properly trained survey personnel to carry out forest mapping and inventory, giving rise to haphazard concession allocation. Similarly, concessions are usually short-term and granted mostly based on administrative/political reasons rather than technical and/or professional advice (Stakeholder workshop, November 2019).
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Forest Compartment Allocation Fee Invoice
2
Verify Harvest Permit Payment (Stumpage) Invoice
3
Verify Harvest permit (Block Permit)
4
Verify Concession license agreement
5
Verify Revenues and payment receipts (Allocation fees, Vehicle Registration, etc.)
6
Consult State Forestry Departments
Consultation with the State Ministry in Charge of Forestry shall confirm that legal status of the operation or rights for conducting the established activities are not subject to court orders or other legally established decisions to cease operations. It should also confirm the legal procedures for obtaining concession licenses have been followed
7
Visit Harvesting site
Verify and cross-check that information in the abovementioned documents correspond to the facts in the field
Description of legal requirements
Concession allocation process shall follow legal requirements
VIEW MORE
For Forest Reserves: State Forestry Department approves concessions through allocation of specified hectares forest compartment to concessionaires while the survey unit ascertains the coordinates of the compartments when visited. The compartment is then related with the existing map (if any) to determine the location and whether it falls under Forest Reserve or Free Area before a final approval can be given. Usually, allocation of a concession has a validity of one year with the option of renewal based on good performance. Furthermore, the concession only guarantees the removal of specific trees as approved by government and does not confer the burden of sustainable use on the concessionaire for that year (Stakeholder workshop, November 2019). 
Legally required documents
Applicable legislation
VIEW LESS
1.3 Management and harvesting planning
Last updated on 2021-12-07 Lack of forest management plans  Specified RISK
No state currently has a reasonable management plan to govern their forestry operations. For instance, what exists as management plan in Oyo State is the one produced in 1914 by the colonial masters. Expectedly, the plan is out of tune with the current realities in the state (Stakeholder workshop, November 2019).Forest reserves have been significantly reduced across the country due to haphazard harvesting plans and lack of functional forest manag... VIEW MORENo state currently has a reasonable management plan to govern their forestry operations. For instance, what exists as management plan in Oyo State is the one produced in 1914 by the colonial masters. Expectedly, the plan is out of tune with the current realities in the state (Stakeholder workshop, November 2019).
Forest reserves have been significantly reduced across the country due to haphazard harvesting plans and lack of functional forest management plans (Ahmed, Y.M, 2017).
In several instances, the forestry officials are not conversant with their forest reserves but depend on the information provided by loggers (Stakeholder workshop, November 2019).
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Forest Management plan
Forest Management Plan shall contain all legally required information. Harvesting restrictions shall be identified in management plan and maps if legally required
2
Verify Annual operating or harvesting plans
Annual operating or harvesting plans shall be in place and approved by legally competent authorities. It shall contain information and procedures, according to all legal requirements.
3
Verify Harvesting inventory
Harvesting inventories shall be conducted according to legal requirements.
4
Consult State Forestry Departments
Consult relevant State Forestry department about existence and implementation of relevant Forest Management Plan for a harvesting site and if the Plan was prepared following legal requirements.
5
Visit Harvesting site
Visit harvesting site to indicate that the contents of the harvesting plans are adhered to in the field
Description of legal requirements
Forest Management plan shall be in place
VIEW MORE
For Forest Reserves: According to the National Forest Policy (2006), a management plan should be developed for every Forest Reserve in Nigeria and reviewed every five years. The 2006 Forest Policy is a policy guide for State Forestry Departments, but they are not strictly mandated to comply since they enjoy independence in the way they manage their forest resources. Since the Forest Reserves are managed by the state governments, the responsibility of developing forest inventory and management plans rests on the State’ Forestry departments.
According to the National Forest Law, the Minister shall publish a notice in the Gazette setting out a working plan which is to include a general description of the area covered by the working plan and the place or places at which a copy of the plan may be inspected by any interested person. At the request of a council, a forest plantation or forest reserve constituted under and in accordance with the provisions of the Local Government Law may, on notification to the effect being published by the Minister in the Gazette, be placed, temporarily, under the protection, control and management of the Minister.
Examples of state legislation:
In Enugu State, the Commissioner tasked with agriculture shall publish a notice in the gazette, which sets out the working plan which is to include the name and nature of the working plan, general description and places of possible inspection where the plan may be accessible to the public. At the request of a local government council, a forest plantation or forest reserve constituted under and in accordance with the provisions of the Local Government Law may on notification to the effect being published by the Commissioner in the State Gazette, be placed, temporarily, under the protection, control and management of the Commissioner.
In Cross River State, a forest sector strategy for the conservation and sustainable management of forest resources is envisioned. This strategy should lay out the objectives of the forestry in the state and provide guidance for forest management in all forest areas (state, community and private forest). This strategy is reviewed by the Forestry Commission, in collaboration with stakeholders, every five years. The protection, control and management of forest reserves and protected forest should be exercised and directed by the Forestry Commission in collaboration with key stakeholders from communities, civil society, private sector and any Community Based Forest Management Association or other relevant Government Agencies.
 
Legally required documents
Applicable legislation
VIEW LESS
1.4 Harvesting permits
Last updated on 2021-12-07 Logging without harvesting permit or Out Turn Volume system  Specified RISK
Illegal harvested without any harvesting/block permit was documented in various states (Business Day, 2020).State Government control on logging in the Free Areas is limited to the issuance of permits or licenses to loggers after payment of all necessary fees (V.A.J. Adekunle, 2010). The Forestry officials encounter serious challenges in undertaking their lawful assignments including monitoring and operation of Harvest Permit due to lack of logis... VIEW MOREIllegal harvested without any harvesting/block permit was documented in various states (Business Day, 2020).
State Government control on logging in the Free Areas is limited to the issuance of permits or licenses to loggers after payment of all necessary fees (V.A.J. Adekunle, 2010). 
The Forestry officials encounter serious challenges in undertaking their lawful assignments including monitoring and operation of Harvest Permit due to lack of logistical and material support. In some states, Forestry officials wait at road junctions to intercept and pass hammer harvested logs. (Stakeholder workshop, November 2019) 
Furthermore, the disadvantage of OTV is that it is labour intensive and time consuming. For example, it requires a team of thirteen people and several person-days to conduct a proper OTV sale (Wamugimda, 1971). The system also encourages the over-exploitation of high value tree species and under-exploitation of lesser-known species, so it does little to encourage efficient forest management and utilisation. 
Producers harvesting wood under the OTV system are very selective in what they take in terms of species, size and the shape of trees, leading to under-utilisation of the forest. In addition, the bills for total fees (based on the measurement and estimation of volumes) are sent to the office, where the supervising officer is handicapped by lack of transportation to cross-check field information. This creates room for collaboration between field officers and contractors to defraud government through overharvesting and under- declaration of actual volume of logs harvested. Many saplings are also destroyed under this system because of the extensive nature of harvesting that also often occurs under this system.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Forest Compartment Allocation Fee Invoice
2
Verify Harvest Permit Payment (Stumpage) Invoice
3
Verify Harvest permit (Block Permit)
4
Verify Out Turn Volume system documentation
5
Consult State Forestry Departments
Consult State Forestry Departments to confirm the validity of harvest permit or Out Turn Volume system used for harvesting. It should also confirm that relevant documents have been issued according to the laws and regulations by the legally designated competent authority.
6
Visit Harvesting site
Visit harvesting site to confirm that information regarding area, species, volumes and other information given in the harvest permit or Out Turn Volume documents are correct and within limits prescribed in the legislation
Description of legal requirements
Harvesting permit or Out Turn Volume system are required to conduct harvesting activities
VIEW MORE
Under the Forest Law, timber is included in the definition of forest produce. Licences are issued by the minister in charge of agriculture. Licences are not transferable unless approval of the minister is obtained. The destruction of a protected tree is never authorized.
Each State’s Government has a power to implement laws related to harvesting/block permits. Relevant state law should thus be analysed for this indicator. 
Forest Reserves:
For any concessionaire to commence harvesting, a valid harvesting/block permit is required. To apply for the permit, it is required to have A Forest Compartment Allocation Fee Invoice as the evidence of payment for the right to harvest in allocated forest compartments. Without a Harvest Permit Payment Invoice the harvesting permit cannot be issued and Concession would not be granted. The two documents are complementary and essential.
Also, the harvested logs are supposed to be hammer marked by forestry officials as a seal of authority of Government (Stakeholder workshop, November 2019).
In accordance with the Forest Regulations, the Chief Conservator may, by notice in the Gazette, order that free permits shall be given for the exercise of a right in a forest reserve. It is meant to serve for domestic purposes only. The granting of this special permit may not infringe upon already existing rights. The permit may be valid for a period of 6 months with the possibility of extension (FAO,2021).
In some cases, allocation is based on Out Turn Volume (OTV). This system is used for concessionaires to fell trees from concession areas without the use of the permit system. OTV requires the measurement and estimation of the actual volume of wood removed from the forest and, as such, is more precise than a per-tree fee, which does not consider differences in height and girth. The fee is based on the estimated volume of each log (calculated using approved tariff tables) in states like Ogun, Ondo, Oyo and Osun. The OTV method is also operated as a pre-paid system in some states, where the total amount of fees has to be paid before wood is removed from the forest. This is done to prevent fraud and loss of revenue by the government. 
Free Areas:
The Timber contractor intending to harvest wood in Free Areas is expected to submit a request for Harvest Permit to the State government before exploitation takes place.
In order to obtain a Harvest Permit, the concessionaire must meet the following requirements:
•    Must be a registered company with the relevant Ministry as Timber Contractor
•    Must have experience or technical expertise in timber harvesting or engage an expert
•    Must pay a fee on every economic tree felled as permittees contribute to the regeneration programme of the State Government.
•    Must pay a non-refundable application fee in respect of Forest Reserve allocation or revalidation of forest allocation
•    Must pay a non-refundable application fee for allocation of different tree species
As regards Free Areas, allocation is based on ‘per tree basis’ to serve as permit to harvest trees identified by the timber contractors on confirmation by the Forestry officials.
Examples from states:
In Enugu state, the Commissioner tasked with agriculture may grant licences in forest reserves in the form and on terms as he or she may decide. The Chief Conservator may by notice in the State Gazette order that free permits should be given for the exercise of rights in a forest reserve. These permits may be obtained from an Assistant Conservator. A permit is valid for six (6) months.
In Cross River State, the Forestry Commission is responsible for issuing harvesting licences. Accordingly, the Commission may, on the satisfaction of certain conditions, grant permits to interested persons to harvest or trade in timber. Generally, it is forbidden to harvest forest produce in state forest reserves, the Commission may however, allow forest produce to be taken from a reserve or protected forest for required public purposes upon payment of a fee (FAO, 2021). 
 
Legally required documents
Applicable legislation
VIEW LESS
1.4 Harvesting permits
Last updated on 2021-12-07 Harvesting permits are issued without following legal requirements  Specified RISK
Illegal harvested without any harvesting/block permit was documented in various states (Business Day, 2020).State Government control on logging in the Free Areas is limited to the issuance of permits or licenses to loggers after payment of all necessary fees (V.A.J. Adekunle, 2010). The Forestry officials encounter serious challenges in undertaking their lawful assignments including monitoring and operation of Harvest Permit due to lack of logis... VIEW MOREIllegal harvested without any harvesting/block permit was documented in various states (Business Day, 2020).
State Government control on logging in the Free Areas is limited to the issuance of permits or licenses to loggers after payment of all necessary fees (V.A.J. Adekunle, 2010). 
The Forestry officials encounter serious challenges in undertaking their lawful assignments including monitoring and operation of Harvest Permit due to lack of logistical and material support. In some states, Forestry officials wait at road junctions to intercept and pass hammer harvested logs. (Stakeholder workshop, November 2019) 
Furthermore, the disadvantage of OTV is that it is labour intensive and time consuming. For example, it requires a team of thirteen people and several person-days to conduct a proper OTV sale (Wamugimda, 1971). The system also encourages the over-exploitation of high value tree species and under-exploitation of lesser-known species, so it does little to encourage efficient forest management and utilisation. 
Producers harvesting wood under the OTV system are very selective in what they take in terms of species, size and the shape of trees, leading to under-utilisation of the forest. In addition, the bills for total fees (based on the measurement and estimation of volumes) are sent to the office, where the supervising officer is handicapped by lack of transportation to cross-check field information. This creates room for collaboration between field officers and contractors to defraud government through overharvesting and under- declaration of actual volume of logs harvested. Many saplings are also destroyed under this system because of the extensive nature of harvesting that also often occurs under this system.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Forest Compartment Allocation Fee Invoice
2
Verify Harvest Permit Payment (Stumpage) Invoice
3
Verify Harvest permit (Block Permit)
4
Verify Out Turn Volume system documentation
5
Consult State Forestry Departments
Consult State Forestry Departments to confirm the validity of harvest permit or Out Turn Volume system used for harvesting. It should also confirm that relevant documents have been issued according to the laws and regulations by the legally designated competent authority.
6
Visit Harvesting site
Visit harvesting site to confirm that information regarding area, species, volumes and other information given in the harvest permit or Out Turn Volume documents are correct and within limits prescribed in the legislation
Description of legal requirements
Harvesting permit shall be obtained following legal requirements
VIEW MORE
Under the Forest Law, timber is included in the definition of forest produce. Licences are issued by the minister in charge of agriculture. Licences are not transferable unless approval of the minister is obtained. The destruction of a protected tree is never authorized.
Each State’s Government has a power to implement laws related to harvesting/block permits. Relevant state law should thus be analysed for this indicator. 
Forest Reserves:
For any concessionaire to commence harvesting, a valid harvesting/block permit is required. To apply for the permit, it is required to have A Forest Compartment Allocation Fee Invoice as the evidence of payment for the right to harvest in allocated forest compartments. Without a Harvest Permit Payment Invoice the harvesting permit cannot be issued and Concession would not be granted. The two documents are complementary and essential.
Also, the harvested logs are supposed to be hammer marked by forestry officials as a seal of authority of Government (Stakeholder workshop, November 2019).
In accordance with the Forest Regulations, the Chief Conservator may, by notice in the Gazette, order that free permits shall be given for the exercise of a right in a forest reserve. It is meant to serve for domestic purposes only. The granting of this special permit may not infringe upon already existing rights. The permit may be valid for a period of 6 months with the possibility of extension (FAO,2021).
In some cases, allocation is based on Out Turn Volume (OTV). This system is used for concessionaires to fell trees from concession areas without the use of the permit system. OTV requires the measurement and estimation of the actual volume of wood removed from the forest and, as such, is more precise than a per-tree fee, which does not consider differences in height and girth. The fee is based on the estimated volume of each log (calculated using approved tariff tables) in states like Ogun, Ondo, Oyo and Osun. The OTV method is also operated as a pre-paid system in some states, where the total amount of fees has to be paid before wood is removed from the forest. This is done to prevent fraud and loss of revenue by the government. 
Free Areas:
The Timber contractor intending to harvest wood in Free Areas is expected to submit a request for Harvest Permit to the State government before exploitation takes place.
In order to obtain a Harvest Permit, the concessionaire must meet the following requirements:
•    Must be a registered company with the relevant Ministry as Timber Contractor
•    Must have experience or technical expertise in timber harvesting or engage an expert
•    Must pay a fee on every economic tree felled as permittees contribute to the regeneration programme of the State Government.
•    Must pay a non-refundable application fee in respect of Forest Reserve allocation or revalidation of forest allocation
•    Must pay a non-refundable application fee for allocation of different tree species
As regards Free Areas, allocation is based on ‘per tree basis’ to serve as permit to harvest trees identified by the timber contractors on confirmation by the Forestry officials.
Examples from states:
In Enugu state, the Commissioner tasked with agriculture may grant licences in forest reserves in the form and on terms as he or she may decide. The Chief Conservator may by notice in the State Gazette order that free permits should be given for the exercise of rights in a forest reserve. These permits may be obtained from an Assistant Conservator. A permit is valid for six (6) months.
In Cross River State, the Forestry Commission is responsible for issuing harvesting licences. Accordingly, the Commission may, on the satisfaction of certain conditions, grant permits to interested persons to harvest or trade in timber. Generally, it is forbidden to harvest forest produce in state forest reserves, the Commission may however, allow forest produce to be taken from a reserve or protected forest for required public purposes upon payment of a fee (FAO, 2021). 
 
Legally required documents
Applicable legislation
VIEW LESS
1.5 Payment of royalties and harvesting fees
Last updated on 2021-12-07 Non-payment of fees and royalties  Specified RISK
The forest revenue system in Nigeria is weak and inefficient and is not designed to maximise the diverse range of benefits that could be produced from Nigeria’s forests. Poaching and illegal harvesting are rampant, causing the Government to lose huge amounts of potential revenue (Imaobong Ufot Nelson et al, 2020).There is a general lack of forestry personnel to enforce adherence to specification of the tariff tables. There could be the tendency... VIEW MORE

The forest revenue system in Nigeria is weak and inefficient and is not designed to maximise the diverse range of benefits that could be produced from Nigeria’s forests. Poaching and illegal harvesting are rampant, causing the Government to lose huge amounts of potential revenue (Imaobong Ufot Nelson et al, 2020).

There is a general lack of forestry personnel to enforce adherence to specification of the tariff tables. There could be the tendency to cheat in tariff tables to pay less fees and royalties. The absence of an acceptable baseline for forest revenue further complicates this situation, with states charging different and arbitrarily low fees in some instances. Furthermore, forestry departments lack the requisite facilities to carry out their work effectively (Stakeholder workshop, November 2019). 

References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationStakeholder consultation
1
Verify Receipts
Receipts shall exist for payments of harvesting related royalties, taxes, harvesting fees and other charges. Volumes, species and qualities given in sales and transport documents shall match the paid fees. Classification of species, volumes and qualities shall match the royalties and fees paid.
2
Verify Annual Tax Clearance Certificate
Annual Tax Clearance Certificate confirming full payment of all taxes shall be available
3
Consult State Forestry Departments
State Forestry Departments to confirm that the validity of documents provided above
Description of legal requirements
Royalties and harvesting fees shall be paid according to legal requirements
VIEW MORE
The Forestry Law (1956) prescribes the disposal of fees and royalties into the treasury, which are paid out in royalties to the applicable individual ownership of lands from which the forest produce has been taken. Alternatively, they are paid into a trust on behalf of a village, community or group of persons specified by the minister.
Where fees and royalties are both payable (tariff rate), the fees form 80 percent of the sum payable and royalties form 20 percent, except in the case of mangrove forests where 100 per cent of the tariff rate is payable as royalties. All fees and royalties should be paid prior to the issuing of the permit. 
Examples from states:
In Enugu State all fees received, and royalties received in respect of forest produce shall be paid to the individual owner, provided that individual ownership of the lands from which the forest produce has been taken can be proved. In all other cases the royalties should be deposited in the Treasury of a district council in the name of the local council or councils having jurisdiction in the area in trust for and on behalf of a village, community or group of persons. The regulations further provide establishment of the 'tariff'. Consisting of the fees and royalties payable in respect of protected trees.
In Cross River State, there is a fund established called the Forestry Reserve Fund in which all excess monies of budgetary allocation or other sources as well as for instance percentages from licences and concessions, and regeneration fees. Another fund, the Forest Trust Fund, is established to fund regeneration in depleted areas and general sustenance of the forest. Income sources are subventions from government grants and other sources.
The stipulated OTV charges vary among the species, the charges also depend on the grade of wood. The first-class woods, such as Afzelia spp., Teak (Tectona grandis) and Cordia, attract high charges, while Triplochiton, Gmelina and Diospyros are sold for lower prices in all states. There are also variations in charges from state to state for a given species. To illustrate this, examples from 2001 has been provided in the following paragraph. Note that the current charges will have to be identified for the applicable species and states. 
In 2001 the charge for Teak was as high as N 70 per cubic foot in Ekiti and Taraba states and as low as N 1.50 per cubic foot in Kogi State. The charge for Triplochiton was as high as N 56 per cubic foot in Taraba State and as low as N 3.50 per cubic foot in Kogi State. Even within any particular state, charges vary from one species to another with, for example, Ondo State levying a different charge for each of the main species groups, from N 19 per cubic foot for Diospyros to N 68 per cubic foot for teak (FAO, 2001 b). 
 
Legally required documents
  • Company registration with the Ministry as Timber Contractor
  • Markers/ Evidence of identified areas to be harvested
  • Technical expertise certificate in timber harvesting or Timber Expert engagement
Applicable legislation
VIEW LESS
1.5 Payment of royalties and harvesting fees
Last updated on 2021-12-07 Cheating in tariff tables to pay less fees and royalties Specified RISK
The forest revenue system in Nigeria is weak and inefficient and is not designed to maximise the diverse range of benefits that could be produced from Nigeria’s forests. Poaching and illegal harvesting are rampant, causing the Government to lose huge amounts of potential revenue (Imaobong Ufot Nelson et al, 2020).There is a general lack of forestry personnel to enforce adherence to specification of the tariff tables. There could be the tendency... VIEW MORE

The forest revenue system in Nigeria is weak and inefficient and is not designed to maximise the diverse range of benefits that could be produced from Nigeria’s forests. Poaching and illegal harvesting are rampant, causing the Government to lose huge amounts of potential revenue (Imaobong Ufot Nelson et al, 2020).

There is a general lack of forestry personnel to enforce adherence to specification of the tariff tables. There could be the tendency to cheat in tariff tables to pay less fees and royalties. The absence of an acceptable baseline for forest revenue further complicates this situation, with states charging different and arbitrarily low fees in some instances. Furthermore, forestry departments lack the requisite facilities to carry out their work effectively (Stakeholder workshop, November 2019). 

References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationStakeholder consultation
1
Verify Receipts
Receipts shall exist for payments of harvesting related royalties, taxes, harvesting fees and other charges. Volumes, species and qualities given in sales and transport documents shall match the paid fees. Classification of species, volumes and qualities shall match the royalties and fees paid.
2
Verify Annual Tax Clearance Certificate
Annual Tax Clearance Certificate confirming full payment of all taxes shall be available
3
Consult State Forestry Departments
State Forestry Departments to confirm that the validity of documents provided above
Description of legal requirements
Royalties and harvesting fees shall be paid according to legal requirements
VIEW MORE
The Forestry Law (1956) prescribes the disposal of fees and royalties into the treasury, which are paid out in royalties to the applicable individual ownership of lands from which the forest produce has been taken. Alternatively, they are paid into a trust on behalf of a village, community or group of persons specified by the minister.
Where fees and royalties are both payable (tariff rate), the fees form 80 percent of the sum payable and royalties form 20 percent, except in the case of mangrove forests where 100 per cent of the tariff rate is payable as royalties. All fees and royalties should be paid prior to the issuing of the permit. 
Examples from states:
In Enugu State all fees received, and royalties received in respect of forest produce shall be paid to the individual owner, provided that individual ownership of the lands from which the forest produce has been taken can be proved. In all other cases the royalties should be deposited in the Treasury of a district council in the name of the local council or councils having jurisdiction in the area in trust for and on behalf of a village, community or group of persons. The regulations further provide establishment of the 'tariff'. Consisting of the fees and royalties payable in respect of protected trees.
In Cross River State, there is a fund established called the Forestry Reserve Fund in which all excess monies of budgetary allocation or other sources as well as for instance percentages from licences and concessions, and regeneration fees. Another fund, the Forest Trust Fund, is established to fund regeneration in depleted areas and general sustenance of the forest. Income sources are subventions from government grants and other sources.
The stipulated OTV charges vary among the species, the charges also depend on the grade of wood. The first-class woods, such as Afzelia spp., Teak (Tectona grandis) and Cordia, attract high charges, while Triplochiton, Gmelina and Diospyros are sold for lower prices in all states. There are also variations in charges from state to state for a given species. To illustrate this, examples from 2001 has been provided in the following paragraph. Note that the current charges will have to be identified for the applicable species and states. 
In 2001 the charge for Teak was as high as N 70 per cubic foot in Ekiti and Taraba states and as low as N 1.50 per cubic foot in Kogi State. The charge for Triplochiton was as high as N 56 per cubic foot in Taraba State and as low as N 3.50 per cubic foot in Kogi State. Even within any particular state, charges vary from one species to another with, for example, Ondo State levying a different charge for each of the main species groups, from N 19 per cubic foot for Diospyros to N 68 per cubic foot for teak (FAO, 2001 b). 
 
Legally required documents
  • Company registration with the Ministry as Timber Contractor
  • Markers/ Evidence of identified areas to be harvested
  • Technical expertise certificate in timber harvesting or Timber Expert engagement
Applicable legislation
VIEW LESS
1.6 Value-added taxes and other sales taxes
Last updated on 2021-12-07 VAT is not paid Specified RISK
Processed wood is expected to attract VAT but there is tendency to not pay VAT (Stakeholder workshop, November 2019). On the institutional level, there are current disputes between the Federal Inland Revenue Services and various State governments. Despite the Federal High Court (FHC) having issued an order restraining the FIRS from collecting VAT, FIRS insists it will collect taxes in anticipation of obtaining a stay of execution. The conflicting... VIEW MOREProcessed wood is expected to attract VAT but there is tendency to not pay VAT (Stakeholder workshop, November 2019). On the institutional level, there are current disputes between the Federal Inland Revenue Services and various State governments. Despite the Federal High Court (FHC) having issued an order restraining the FIRS from collecting VAT, FIRS insists it will collect taxes in anticipation of obtaining a stay of execution. The conflicting position of the federal and state governments is causing much confusion to the taxpayers who are expected to file VAT claims (Global VAT compliance, 2021). 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationStakeholder consultation
1
Verify VAT summary declarations
Review the VAT summary declarations, and proof of VAT payment and verify that the declared VAT amount (7.5%) corresponds to the production data (sales) made by the company
2
Verify Receipts
Receipts for payment sales taxes shall exist. Volumes, species and qualities given in sales and transport documents shall match the fees paid
3
Consult Federal Inland Revenue Service
Consult Federal Inland Revenue Service to verify that payment of the VAT has occurred as established by the tax law
Description of legal requirements
VAT of 7.5% shall be paid
VIEW MORE
The Value Added Tax (VAT) system in Nigeria is administered by the Federal Inland Revenue Service (FIRS) and the taxes are collected by the FIRS Integrated Tax Offices (ITO) located throughout the country. 
According to the Financial Act (2019) VAT tax rate was increased from 5% to 7.5% to all goods and services (starting from 1 February 2020), exempt for those listed separately (such as all exports or agricultural medicine). Companies with turnover of less than NGN 25 million are exempt from charging VAT on their goods and services and filing VAT returns. 
Although VAT is administered centrally by the Federal Government by using the existing tax machinery of the FIRS in close co-operation with the Nigeria Customs Service (NCS) and the State Board of Internal Revenue Services (SBIRS), the net proceeds from the new tax accrue solely to the State Governments after making an allowance of 20% to cover the cost of administration. In effect, the State governments will benefit from approximately 80% of the entire VAT collection. (FIRS Information Circular 9304).
Furthermore, Inter-State wood movement also attracts charges. In a number of states, fees are paid on wood transported to other states and the details of these fees are given below. 
In Ondo State, for lorries up to 10 tonnes in weight, a fee of N 50 per log is paid on any legally removed log crossing the border to another state. For a vehicle over 10 tonnes in weight, N 100 is charged for each plank and saw log.
In Oyo State, a fee of N 50 per log is charged on logs going out of the state. Charges on planks vary from N 25 to N 50 per piece, depending on the capacity of the vehicle.
In Osun State, transportation of logs out of the state is prohibited. A fee of between N 25 and N 50 per piece is collected on sawn wood transported out of the state.
In Ogun State, charges on transportation to other states include: N 100 per pole; N 1,500 per trailer of planks; N 500 per lorry-load of planks; and N 150 per 10-tonne lorry-load of planks.
In Lagos State, charges on transportation to other states are: N 1,000 for a lorry-load of sawn planks; N 2,500 for a trailer-load of sawn planks; N 500 for lorry-load of billets; and N 1,000 for a trailer-load of billets. Charges on firewood are N 250 per lorry-load and N 500 per trailer-load.
In Ekiti State, the charge for transporting a log below 12 feet in length to other states is N 1,000, while the charge for logs above 12 feet length is N 2,000. A 10-tonne lorry-load of planks is charged N 1,000, while a trailer-load is charged N 3,000.
 
Legally required documents
Applicable legislation
VIEW LESS
1.7 Income and profit taxes
Last updated on 2021-12-07 Nonpayment of income and profit taxes  Specified RISK
Some timber contractors may not transact their business through the regular banking system leading to under-payment of taxes to government. In the case of inter-state movement charges which in most cases are paid along the road, remittances of the sum collected may be compromised by corrupt government revenue collectors (Stakeholder workshop, November 2019).... VIEW MORESome timber contractors may not transact their business through the regular banking system leading to under-payment of taxes to government. In the case of inter-state movement charges which in most cases are paid along the road, remittances of the sum collected may be compromised by corrupt government revenue collectors (Stakeholder workshop, November 2019).
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationStakeholder consultation
1
Verify Tax declaration form
Verify that correct taxes were indicated
2
Verify Annual Tax Clearance Certificate
Verify that correct taxes were indicated
3
Consult Federal Inland Revenue Service
Federal Inland Revenue Service to verify that the company has correctly paid income and profit taxes
Description of legal requirements
Income and profit taxes shall be paid
VIEW MORE
Exemptions from companies’ income tax
Agricultural businesses - Companies engaged in primary agricultural production will enjoy a five-year tax holiday and, upon satisfactory performance of agricultural production, the holiday will be renewed for an additional maximum period of 3 years.
“Primary agricultural production” defines what constitutes primary agricultural production as being production of crops, livestock, forestry, and fishing, and excludes production at the intermediate/by-products or derivatives levels (EY, 2020). 
Financial Act (2020) created incentives on which banks can benefit from granting loans to the agricultural industry (primary agricultural production defined as primary crop production, primary livestock production, primary forestry production and primary fishing production). Furthermore, the Financial Act reduces the moratorium period from 18 months to 12 months to encourage banks to provide these loans. 
 
Legally required documents
  • Annual Tax Clearance Certificate
  • Tax declaration form
Applicable legislation
VIEW LESS
1.8 Timber harvesting regulations
Last updated on 2021-12-07 Harvesting regulation being violated (e.g., soil, young standing trees and seedlings are damaged during harvesting; vegetation is destroyed during road construction for transportation of logs)  Specified RISK
Timber harvesting with insufficient planning, improper operational techniques, and lack of control of operations results in severe damage to forest soil, forest trees and seedlings. The only available felling tool in Nigeria is the motorised or power chainsaw, but dragging of felled trees, packing and loading into lorries are generally done manually with chains and winches. These processes are primitive and tedious and have the potential to disru... VIEW MORETimber harvesting with insufficient planning, improper operational techniques, and lack of control of operations results in severe damage to forest soil, forest trees and seedlings. The only available felling tool in Nigeria is the motorised or power chainsaw, but dragging of felled trees, packing and loading into lorries are generally done manually with chains and winches. These processes are primitive and tedious and have the potential to disrupt the ecosystem. In addition, there is usually vegetation destruction during road construction for transportation of logs and construction of gantries. As a result, many standing young trees, saplings and wildlings of economic value are destroyed. It was found that about 17.74% of residual trees suffer logging damage and about 8% of virgin ground is left bare and damaged after felling operations. These forest operations neglect the principle of sustainable forest management (V.A.J. Adekunle, 2010; Adejumo Kabir, 2020; Orji Sunday, 2020).
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Harvest permit (Block Permit)
Verify if the document contains sustainable forest management practices
2
Verify Forest Management plan
Verify if the document contains sustainable forest management practices
3
Verify Working site records
Working site records to verify if it contains any violations made by specific harvesting company
4
Consult State Forestry Departments
Consult State forest department about how effective forest operations monitoring has been in the relevant harvesting area and how a relevant harvesting company complies with harvesting regulations
5
Visit Harvesting site
Visit the harvesting area and observe that the soil was not damaged during harvesting, that young trees and seedlings are not damaged, that vegetation is not destroyed during road construction for transport of logs.
Description of legal requirements
Harvesting regulations shall be followed and compied with
VIEW MORE
The terms and conditions for logging are stipulated in the forest laws of each state and include efficient logging practices and list of species to be harvested. The harvest permits should also contain specifications on minimum girth and species. Furthermore, provisions are made to restrain logging in riparian areas to prevent erosion and siltation. 
Forestry officials are mandated to undertake monitoring of forestry operations (Forest Law, 1956). 
 
Legally required documents
Applicable legislation
VIEW LESS
1.9 Protected sites and species
Last updated on 2021-12-07 Logging in the National Parks and protected areas  Specified RISK
There are some intrusions by loggers into protected areas which are difficult to control by government officials for lack of human and material capacity to monitor the protected areas. Evidence shows that illegal logging has been increasing in Nigerian national parks such as Gashaka Gumti National Park, which destroys local habitat for many protected wildlife animals (Vanguad, 2019). Furthermore, there are some illegal loggers that engage force... VIEW MORE

There are some intrusions by loggers into protected areas which are difficult to control by government officials for lack of human and material capacity to monitor the protected areas. 

Evidence shows that illegal logging has been increasing in Nigerian national parks such as Gashaka Gumti National Park, which destroys local habitat for many protected wildlife animals (Vanguad, 2019). 

Furthermore, there are some illegal loggers that engage force (including firearms and dangerous chemicals) at field level which are beyond the means of the Park officials to resist. The boundaries of some National Parks are also not clearly demarcated making them vulnerable to intrusion by illegal timber loggers.

Regarding protected species, CITES issued a Recommendation to suspend commercial trade in

West African rosewood (Pterocarpus erinaceus) – Kosso in 2018. Nigeria’s rosewood grows predominantly in arid areas with sparse forest cover. It fixes nitrogen levels in the soil, is resistant to fire, and provides protection and sustenance to a wide range of wild. In short, Kosso’s value to the ecosystem far outweighs its export value. In 2018, the International Union for the Conservation of Nature (IUCN) classified Kosso as “endangered” with a “decreasing population trend” (UNODC, 2021). 

CITES trade suspension means this species has been traded illegally and possibly without a required permit or from protected areas such as National parks and Strict Nature Reserves. Based on concerns raised on illegal logging of the protected species of rosewood (The list of protected species equals the list of CITES species), the risk is considered specified related to illegal harvesting of protected species in Nigeria. The concern of CITES relate to West African rosewood (Pterocarpus erinaceus) specifically, however, we raise a risk for protected species in general based on a precautionary approach. 

References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationScientific testingStakeholder consultation
1
Verify Harvesting Permit to take Protected species
2
Verify CITES Permit
CITES Permit if importing from Nigeria – all protected species should be listed. Check that rosewood (Pterocarpus erinaceus) is not listed in the CITES permit (CITES recommends suspending commercial trade for this species)
3
Verify Forest Management plan
All legally protected areas (including species habitats) shall be included in the Forest Management Plan and/or in related documentation as required by the legislation
4
Consult Relevant stakeholders - forest agents, military control points, hunters, transpo
Interview forest agents, military control points, hunters, transporters, and sellers regarding their perception of illegal activities by a specific company relating to prohibited species or in protected areas.
5
Visit Harvesting site
Visits to the forest area to verify that protected species were not harvested
6
Conduct timber testing
Description of legal requirements
Logging is forbidden in National Parks and protected areas
VIEW MORE
No logging is permitted in the National parks and Strict Nature Reserves in Nigeria (National Park Service Act, 1999). National Parks are controlled and managed by the Federal Government.
According to the Forest Regulations (1956) it is forbidden to take any timber or protected tree or any protected minor forest produce; or to uproots, destroys, or injures any protected tree or protected minor forest produce from the Forest Reserve. 
According to the Endangered Species (Control of International Trade and Traffic) (Amendment) Act (2016) it is forbidden to trade plant species listed in the Schedule 1 without a special harvesting/block permit.  
The National Environmental Regulations on Control of Alien and Invasive Species (2013) provides a list of alien species requiring a permit. Accordingly, no person may undertake a restricted activity (trade in species) under List of Alien and Invasive species requiring permit (Schedule V) without a permit. It is prohibited to undertake any restricted activity involving a specimen of the prohibited Species listed in the List of Prohibited Invasive Species (Schedule VI) of these Regulations. Import and trade in these species is likewise forbidden.
Examples of state legislation:
In the Cross River State, The Commission may declare a plant or animal species, as well as its habitat, as protected, this declaration prohibits the harvesting of such plant or animal species.
In Enugu State, it is forbidden to take any timber or protected tree or any protected minor forest produce; or to uproots, destroys or injures any protected tree or protected minor forest produce. 
 
Legally required documents
Applicable legislation
VIEW LESS
1.9 Protected sites and species
Last updated on 2021-12-07 Illegal logging of protected species without a permit  Specified RISK
There are some intrusions by loggers into protected areas which are difficult to control by government officials for lack of human and material capacity to monitor the protected areas.  Evidence shows that illegal logging has been increasing in Nigerian national parks such as Gashaka Gumti National Park, which destroys local habitat for many protected wildlife animals (Vanguad, 2019). Furthermore, there are some illegal loggers that engage forc... VIEW MOREThere are some intrusions by loggers into protected areas which are difficult to control by government officials for lack of human and material capacity to monitor the protected areas.  

Evidence shows that illegal logging has been increasing in Nigerian national parks such as Gashaka Gumti National Park, which destroys local habitat for many protected wildlife animals (Vanguad, 2019). 
Furthermore, there are some illegal loggers that engage force (including firearms and dangerous chemicals) at field level which are beyond the means of the Park officials to resist. The boundaries of some National Parks are also not clearly demarcated making them vulnerable to intrusion by illegal timber loggers.

Regarding protected species, CITES issued a Recommendation to suspend commercial trade in
West African rosewood (Pterocarpus erinaceus) – Kosso in 2018. Nigeria’s rosewood grows predominantly in arid areas with sparse forest cover. It fixes nitrogen levels in the soil, is resistant to fire, and provides protection and sustenance to a wide range of wild. In short, Kosso’s value to the ecosystem far outweighs its export value. In 2018, the International Union for the Conservation of Nature (IUCN) classified Kosso as “endangered” with a “decreasing population trend” (UNODC, 2021). 

CITES trade suspension means this species has been traded illegally and possibly without a required permit or from protected areas such as National parks and Strict Nature Reserves. Based on concerns raised on illegal logging of the protected species of rosewood (The list of protected species equals the list of CITES species), the risk is considered specified related to illegal harvesting of protected species in Nigeria. The concern of CITES relate to West African rosewood (Pterocarpus erinaceus) specifically, however, we raise a risk for protected species in general based on a precautionary approach. 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationScientific testingStakeholder consultation
1
Verify Harvesting Permit to take Protected species
2
Verify CITES Permit
CITES Permit if importing from Nigeria – all protected species should be listed. Check that rosewood (Pterocarpus erinaceus) is not listed in the CITES permit (CITES recommends suspending commercial trade for this species)
3
Verify Forest Management plan
All legally protected areas (including species habitats) shall be included in the Forest Management Plan and/or in related documentation as required by the legislation
4
Consult Relevant stakeholders - forest agents, military control points, hunters, transpo
Interview forest agents, military control points, hunters, transporters, and sellers regarding their perception of illegal activities by a specific company relating to prohibited species or in protected areas.
5
Visit Harvesting site
Visits to the forest area to verify that protected species were not harvested
6
Conduct timber testing
Description of legal requirements
Protected species can be harvesting only having a special harvesting permit
VIEW MORE
No logging is permitted in the National parks and Strict Nature Reserves in Nigeria (National Park Service Act, 1999). National Parks are controlled and managed by the Federal Government.
According to the Forest Regulations (1956) it is forbidden to take any timber or protected tree or any protected minor forest produce; or to uproots, destroys, or injures any protected tree or protected minor forest produce from the Forest Reserve. 
According to the Endangered Species (Control of International Trade and Traffic) (Amendment) Act (2016) it is forbidden to trade plant species listed in the Schedule 1 without a special harvesting/block permit.  
The National Environmental Regulations on Control of Alien and Invasive Species (2013) provides a list of alien species requiring a permit. Accordingly, no person may undertake a restricted activity (trade in species) under List of Alien and Invasive species requiring permit (Schedule V) without a permit. It is prohibited to undertake any restricted activity involving a specimen of the prohibited Species listed in the List of Prohibited Invasive Species (Schedule VI) of these Regulations. Import and trade in these species is likewise forbidden.
Examples of state legislation:
In the Cross River State, The Commission may declare a plant or animal species, as well as its habitat, as protected, this declaration prohibits the harvesting of such plant or animal species.
In Enugu State, it is forbidden to take any timber or protected tree or any protected minor forest produce; or to uproots, destroys or injures any protected tree or protected minor forest produce. 
 
Legally required documents
Applicable legislation
VIEW LESS
1.10 Environmental requirements
Last updated on 2021-12-07 Harvesting is performed without Environmental Impact Assessment  Specified RISK
Legal enforcement of EIA is in Nigeria challenging. One of the reasons often cited is the overarching corruption of public officials charged with enforcing the laws. In addition, the process of EIA is somewhat tedious and expensive thus leading to circumvention by loggers. Enforcement of EIA by NESREA could be weak due to the lack of competent personnel competent personnel and material support (Adekunle, 2010; John Ishaku Mantu, 2019). Public pa... VIEW MORELegal enforcement of EIA is in Nigeria challenging. One of the reasons often cited is the overarching corruption of public officials charged with enforcing the laws. In addition, the process of EIA is somewhat tedious and expensive thus leading to circumvention by loggers. Enforcement of EIA by NESREA could be weak due to the lack of competent personnel competent personnel and material support (Adekunle, 2010; John Ishaku Mantu, 2019). 
Public participation is instrumental to ensuring compliance with Environmental Assessment. NESREA has a mandate to make available its report on environmental assessment to the public for further scrutiny and comments of experts and interested public individuals and groups. NESREA ought to be involved in massive education and awareness of the public on their roles regarding EIA. Many of the EIA reports are not made available to the public for comments (John Ishaku Mantu, 2019).
High scale illegal logging of has been identified as the main driver of degradation and loss of forests in various states. Residual waste left by loggers served as ready fuel for the wildfires during the dry season (Peter, D.D, 2020).
  VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Environmental Impact Assessement (EIA)
Verify that Environmental Impact Assessments is in place. Check that is has an approval from National Environmental Standards and Regulations Enforcement Agency (NESREA). Check who assessed EIA and verify he/she is registered with NESREA, Corporate Affairs Commission and Federal Inland Revenue Service (FIRS). Check that consultant provided the following documents for accreditation with NESREA: o Certificate of Incorporation with Corporate Affairs Commission; o Memorandum and Article of Association o Particulars of Directors of the Company; o Tax Clearance Certificates of the Company; o Evidence of competence in environmental consultancy; o Evidence of previous environmental jobs successfully completed; o Evidence of registration with other relevant regulatory bodies.
2
Consult NESREA
Consult with NESREA to verify that Environmental Impact Assessment was conducted following legal requirements. Consult relevant stakeholders (state administration for example) to confirm that NESREA followed legal requirements in conducting EIA
3
Visit Harvesting site
Verify onsite if the environmental requirements have been followed
Description of legal requirements
Environmental Impact Assessment shall be in place prior to harvesting
VIEW MORE
Under the Environmental Impact Assessment Act of 1992, application in writing to the Environmental Agency is necessary prior to undertaking of a project. In accordance with the National Environmental Regulations (Protection of Watershed, Mountainous, Hilly and Catchment Areas), where a watershed, mountainous, hilly or catchment area is at risk of environmental degradation, the Environmental Agency in collaboration with State, Local Government Council and other stakeholders may issue an order to the persons holding interest in the land to plant trees and other vegetation as well as take appropriate measures to protect the area.
The Environmental Impact Assessment Act of 1992 provides that an Environmental Impact Assessment shall include at least the following minimum matters, that is:
a)    a description of the proposed activities; 
b)    a description of the potential affected environment including specific information necessary to identify and assess the environmental effects of the proposed activities; 
c)    a description of the practical activities, as appropriate; 
d)    an assessment of the likely or potential environmental impacts on the proposed activity and the alternatives, including the direct or indirect cumulative, short-term and tong-term effects;
e)    an identification and description of measures available to mitigate adverse environmental impacts of proposed activity and assessment of those measures;
f)    an indication of gaps in knowledge and uncertainly which may be encountered in computing the required information;
g)    an indication of whether the environment of any other State, Local Government Area or areas outside Nigeria is likely to be affected by the proposed activity or its alternatives;
h)    a brief and non-technical summary of the information provided under paragraph (a) to (g) of this section.
National Environmental Standards and Regulations Enforcement Agency (NESREA) was established in 2007 (Act No. 25 of 2007), which replaces Federal Environmental Protection Agency (FEPA). The agency functions as a parastatal of the Federal Ministry of Environment. 
The Act provides for the objectives of the NESREA to have responsibility for the protection and development of the environment, biodiversity conservation and sustainable development of Nigeria’s natural resources in general and environmental technology, including coordination and liaison with relevant standards, regulations, rules, laws, policies, and guidelines.  NESREA under the Federal Ministry of Environment carries out Environmental Impact Assessments (EIAs) and only the Minister is empowered to issue an Environmental Impact Statement (EIS). Though Nigeria runs a federal system of government, the sub-national regions (known as States) are not empowered to issue EIAs.
NESREA issues tenders for consultancy companies to conduct EIA. They shall be accredited and meet the requirements listed below.
These entities shall be duly registered with the Corporate Affairs Commission (CAC) and Federal Inland Revenue Service (FIRS), have relevant expertise and proven competence in a broad spectrum of environmental issues. If all of the above conditions are met, Environmental Consultancy companies/organizations shall register at register with NESREA as accredited NESREA consultants (NESREA, 2021). 
Interested applicants for accredited NESREA consultants are to proceed to the Application Portal to complete the application form. Each application shall be accompanied by a non-refundable application fee of Twenty-Five Thousand Naira only (N25, 000.00).  Documents to be uploaded and submitted along with the form are as follows:
•    Certificate of Incorporation with Corporate Affairs Commission;
•    Memorandum and Article of Association
•    Particulars of Directors of the Company;
•    Tax Clearance Certificates of the Company;
•    Evidence of competence in environmental consultancy;
•    Evidence of previous environmental jobs successfully completed;
•    Evidence of registration with other relevant regulatory bodies.
It is forbidden to burn any bush/forest or engage in any activity that may cause bush/forest fire (National Environmental (Control of Bush, Forest Fire and Open Burning) Regulations) without a permit issued by NESREA. 
To prevent desertification, the following actions are encouraged:
•    More sustainable use of fuelwood using more efficient and energy saving devices 
•    Reforestation, reseeding and conservation of areas under desertification 
•    Attaining the 25% national forest cover 
NESREA in collaboration with relevant Ministries, Departments and Agencies, State and Local Governments, shall compile an inventory of all already degraded lands and desertification prone areas to determine their status and possible amelioration measures. 
Any person desiring to carry out any of the regulated activities listed in National Environmental (Control of Bush, Forest Fire and Open Burning) Regulations, Schedule IV (land clearing, earth disturbing activities, extraction of specific resources for export or commercial uses, bush burning, grazing, cultivation of marginal land, agriculture without permit) or extract any resource from a degraded area shall obtain permit from the relevant Ministry Department, States or Local Governments.
It is also forbidden to fell trees in a farm or range land except done for agricultural production in which case looping will be permitted. 
For plantations: In view of the limiting water resources inherent in the semi-arid and arid lands, adequate irrigational systems shall be provided for all plantations established to control desertification.
Lands and water, including the inherent forest or vegetational resources shall be utilised in a sustainable manner (National Environmental (Desertification Control and Drought Mitigation) Regulations, 2011).
Most states also have enshrined in their environmental laws the need to carry out Environmental Impact Assessment that would protect the forests and other fragile Eco-systems.
Examples of state legislation:
In Cross River state no permits, licences or concessions may be granted where the purpose impacts water quality, water supply, watershed, and fisheries.
 
Legally required documents
  • Certificate of Incorporation with Corporate Affairs Commission
  • Company's Memorandum and Article of Association (MEMART)
  • Environmental Impact Assessement (EIA)
  • Evidence of competence in environmental consultancy
  • Evidence of registration with other relevant regulatory bodies
  • NESREA Regulatory documents
  • Particulars of Directors of the Company
  • Tax Clearance Certificate
Applicable legislation
VIEW LESS
1.10 Environmental requirements
Last updated on 2021-12-07 Waste left by logging operators  Specified RISK
Legal enforcement of EIA is in Nigeria challenging. One of the reasons often cited is the overarching corruption of public officials charged with enforcing the laws. In addition, the process of EIA is somewhat tedious and expensive thus leading to circumvention by loggers. Enforcement of EIA by NESREA could be weak due to the lack of competent personnel competent personnel and material support (Adekunle, 2010; John Ishaku Mantu, 2019). Public pa... VIEW MORELegal enforcement of EIA is in Nigeria challenging. One of the reasons often cited is the overarching corruption of public officials charged with enforcing the laws. In addition, the process of EIA is somewhat tedious and expensive thus leading to circumvention by loggers. Enforcement of EIA by NESREA could be weak due to the lack of competent personnel competent personnel and material support (Adekunle, 2010; John Ishaku Mantu, 2019). 
Public participation is instrumental to ensuring compliance with Environmental Assessment. NESREA has a mandate to make available its report on environmental assessment to the public for further scrutiny and comments of experts and interested public individuals and groups. NESREA ought to be involved in massive education and awareness of the public on their roles regarding EIA. Many of the EIA reports are not made available to the public for comments (John Ishaku Mantu, 2019).
High scale illegal logging of has been identified as the main driver of degradation and loss of forests in various states. Residual waste left by loggers served as ready fuel for the wildfires during the dry season (Peter, D.D, 2020).
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Field verification
1
Visit Harvesting site
Verify onsite if no waste was left by the loggers
Description of legal requirements
Residual waste shall be removed from the logging site
VIEW MORE
Under the Environmental Impact Assessment Act of 1992, application in writing to the Environmental Agency is necessary prior to undertaking of a project. In accordance with the National Environmental Regulations (Protection of Watershed, Mountainous, Hilly and Catchment Areas), where a watershed, mountainous, hilly or catchment area is at risk of environmental degradation, the Environmental Agency in collaboration with State, Local Government Council and other stakeholders may issue an order to the persons holding interest in the land to plant trees and other vegetation as well as take appropriate measures to protect the area.
The Environmental Impact Assessment Act of 1992 provides that an Environmental Impact Assessment shall include at least the following minimum matters, that is:
a)    a description of the proposed activities; 
b)    a description of the potential affected environment including specific information necessary to identify and assess the environmental effects of the proposed activities; 
c)    a description of the practical activities, as appropriate; 
d)    an assessment of the likely or potential environmental impacts on the proposed activity and the alternatives, including the direct or indirect cumulative, short-term and tong-term effects;
e)    an identification and description of measures available to mitigate adverse environmental impacts of proposed activity and assessment of those measures;
f)    an indication of gaps in knowledge and uncertainly which may be encountered in computing the required information;
g)    an indication of whether the environment of any other State, Local Government Area or areas outside Nigeria is likely to be affected by the proposed activity or its alternatives;
h)    a brief and non-technical summary of the information provided under paragraph (a) to (g) of this section.
National Environmental Standards and Regulations Enforcement Agency (NESREA) was established in 2007 (Act No. 25 of 2007), which replaces Federal Environmental Protection Agency (FEPA). The agency functions as a parastatal of the Federal Ministry of Environment. 
The Act provides for the objectives of the NESREA to have responsibility for the protection and development of the environment, biodiversity conservation and sustainable development of Nigeria’s natural resources in general and environmental technology, including coordination and liaison with relevant standards, regulations, rules, laws, policies, and guidelines.  NESREA under the Federal Ministry of Environment carries out Environmental Impact Assessments (EIAs) and only the Minister is empowered to issue an Environmental Impact Statement (EIS). Though Nigeria runs a federal system of government, the sub-national regions (known as States) are not empowered to issue EIAs.
NESREA issues tenders for consultancy companies to conduct EIA. They shall be accredited and meet the requirements listed below.
These entities shall be duly registered with the Corporate Affairs Commission (CAC) and Federal Inland Revenue Service (FIRS), have relevant expertise and proven competence in a broad spectrum of environmental issues. If all of the above conditions are met, Environmental Consultancy companies/organizations shall register at register with NESREA as accredited NESREA consultants (NESREA, 2021). 
Interested applicants for accredited NESREA consultants are to proceed to the Application Portal to complete the application form. Each application shall be accompanied by a non-refundable application fee of Twenty-Five Thousand Naira only (N25, 000.00).  Documents to be uploaded and submitted along with the form are as follows:
•    Certificate of Incorporation with Corporate Affairs Commission;
•    Memorandum and Article of Association
•    Particulars of Directors of the Company;
•    Tax Clearance Certificates of the Company;
•    Evidence of competence in environmental consultancy;
•    Evidence of previous environmental jobs successfully completed;
•    Evidence of registration with other relevant regulatory bodies.
It is forbidden to burn any bush/forest or engage in any activity that may cause bush/forest fire (National Environmental (Control of Bush, Forest Fire and Open Burning) Regulations) without a permit issued by NESREA. 
To prevent desertification, the following actions are encouraged:
•    More sustainable use of fuelwood using more efficient and energy saving devices 
•    Reforestation, reseeding and conservation of areas under desertification 
•    Attaining the 25% national forest cover 
NESREA in collaboration with relevant Ministries, Departments and Agencies, State and Local Governments, shall compile an inventory of all already degraded lands and desertification prone areas to determine their status and possible amelioration measures. 
Any person desiring to carry out any of the regulated activities listed in National Environmental (Control of Bush, Forest Fire and Open Burning) Regulations, Schedule IV (land clearing, earth disturbing activities, extraction of specific resources for export or commercial uses, bush burning, grazing, cultivation of marginal land, agriculture without permit) or extract any resource from a degraded area shall obtain permit from the relevant Ministry Department, States or Local Governments.
It is also forbidden to fell trees in a farm or range land except done for agricultural production in which case looping will be permitted. 
For plantations: In view of the limiting water resources inherent in the semi-arid and arid lands, adequate irrigational systems shall be provided for all plantations established to control desertification.
Lands and water, including the inherent forest or vegetational resources shall be utilised in a sustainable manner (National Environmental (Desertification Control and Drought Mitigation) Regulations, 2011).
Most states also have enshrined in their environmental laws the need to carry out Environmental Impact Assessment that would protect the forests and other fragile Eco-systems.
Examples of state legislation:
In Cross River state no permits, licences or concessions may be granted where the purpose impacts water quality, water supply, watershed, and fisheries.
 
Legally required documents
  • Certificate of Incorporation with Corporate Affairs Commission
  • Company's Memorandum and Article of Association (MEMART)
  • Environmental Impact Assessement (EIA)
  • Evidence of competence in environmental consultancy
  • Evidence of registration with other relevant regulatory bodies
  • NESREA Regulatory documents
  • Particulars of Directors of the Company
  • Tax Clearance Certificate
Applicable legislation
VIEW LESS
1.11 Health and safety
Last updated on 2021-12-07 Obligations relating to the safety of the workers are not respected (no personal protective equipment; no health service centers to provide medical examinations before employment; no periodic medical examinations) Specified RISK
Within forest harvesting, felling and crosscutting are the jobs most prone to serious accidents. Despite the legal requirements, most employees still go about their activities without the requisite protective equipment in place.  The employees in the forestry sector generally have little or no formal education and are not conversant with the health and safety requirements to undertake their assignments. The chainsaw is clearly the single most da... VIEW MOREWithin forest harvesting, felling and crosscutting are the jobs most prone to serious accidents. Despite the legal requirements, most employees still go about their activities without the requisite protective equipment in place.  The employees in the forestry sector generally have little or no formal education and are not conversant with the health and safety requirements to undertake their assignments. The chainsaw is clearly the single most dangerous tool and the chainsaw operator the most exposed worker in forestry operations in Nigeria. Available statistics indicate that accident rate in forestry operation is significantly higher per employee compared to other high risk economic sectors in different countries (Okon, Kufre, 2019).
These industries do not have health service centres to provide medical examinations before employment, periodic medical examinations to ensure they are fit for work and void of illnesses. There are no emergency treatment plans in place and also, health and safety measures are not usually followed during harvesting. (By virtue of Art. 67 (paragraphs e, f, g, i, l) of the Nigerian Labour Act 1971.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Health safety reports
2
Verify Proof that new employees receive hygiene and security training
3
Consult Company workers
Interviews with staff and contractors shall confirm that legally required protection equipment is required/provided by the organization.
4
Visit Harvesting site
Verify onsite that all safety and health regulations are followed, and all required safety equipment is be used.
Description of legal requirements
Health and safety requirements shall be followed
VIEW MORE
Nigeria’s Labour Act (1999) requires that workers are trained in appropriate techniques to minimize the occurrence of job-related accidents. Also, they must be provided with the appropriate tools, outfits and kits for their activities. It also prohibits employment of underage persons (i.e. persons below the age of 16). 

The National Forest Policy of 2006 stipulates that the safety, health and security of forestry personnel as well as the sustainable management of the plants and animals’ habitats shall be of paramount consideration.

The National Policy on Occupational Safety and Health, also stipulates that the Ministry of Health collaborates with Federal Ministry of Labour and the National Information Management System (NIMS) on occupational accidents, injuries and diseases by providing relevant information on all such cases in medical facilities nationwide and also Regulate, monitor and evaluate medical practice in the area of occupational health.
 
Legally required documents
  • Certified conditions of working tools
  • First aids kits
  • Medical Certification
  • Safety kits
Applicable legislation
VIEW LESS
1.12 Legal employment
Last updated on 2021-12-07 Foreign workers work without required permission  Specified RISK
Nigerian people are prone to work for companies harvesting illegally, due to unemployment, poverty and the need for survival. Youths have come to realize that they can make quick money from the forest (Ikuomola et al, 2016). ... VIEW MORE

Nigerian people are prone to work for companies harvesting illegally, due to unemployment, poverty and the need for survival. Youths have come to realize that they can make quick money from the forest (Ikuomola et al, 2016). 

References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Employment Contracts
Verify that employment contracts include required information
2
Verify Foreign workers work permit
3
Verify Salary slips
Salary slips shall be paid officially and declared by the employer according to requirements for personnel involved in harvesting activities
4
Consult Company workers
Consult with company workers: 1) to verify that they are legally employed. Ask if they are covered by the obligatory insurances from the company. 2) to verify that at least the legally established minimum salaries shall be paid for personnel involved in harvesting activities. 3) to verify the minimum age of employees 4) to verify that forced or compulsory labor is not involved in harvesting activities.
5
Visit Harvesting site
Visit the site and observe employees – if no children are employed.
Description of legal requirements
Foreign workers shall have a work permit
VIEW MORE
The Constitution of Nigeria includes stipulations on directing its policy to ensure that all citizens have the opportunity to secure adequate means of livelihood, humane and just work conditions, safeguard of personal health, safety and welfare, adequate medical protection, equal pay, and protection of children and young persons against exploitation.
Under the Labour Act, wages are protected in that the wages of a worker must in all contracts be made payable in legal tender and not otherwise at the agreed upon time. Provided that, where the period is more than one month, the wages shall become due and payable at intervals not exceeding one month. Subject to the Workmen's Compensation Act, a worker is entitled to be paid wages up to twelve working days per year during absence from work caused by temporary illness certified by a registered medical practitioner. Every worker shall be entitled after twelve months continuous service to a holiday with full pay of at least six working days or in the case of persons under the age of sixteen years at least twelve working days. 
Nigeria’s Labour Act (1999) states that an employer is required to provide an employee with a written employment contract within three months of the employee commencing work. The contract must contain:
•    the name of the employer, or group of employers.
•    the worker's name, address, position, and date of engagement.
•    the nature of the employment.
•    the date of expiry if a fixed term contract.
•    the notice period for termination.
•    wages, frequency of payment and method of calculation.
•    hours of work, holiday pay and conditions for incapacity owing to sickness and injury; and
•    any special conditions of the contract.
The contract must be signed to make it legally binding, as the employee's signature conveys acceptance of terms. The NICN may ignore express contractual terms if they are inconsistent with the reality of the relationship between the parties. The Labour Act allows parties to change or amend terms after execution, requiring the employer to inform the worker of the nature of the change by a written statement not more than one month after it is made. If a copy of the statement is not left in the worker's possession, he or she must be given reasonable access to it during his or her employment. 
Pursuant to the Labour Act, normal working hours under any employment contract shall be fixed by agreement, by any collective bargaining process within the organisation or industry, or by an industrial wages board (where there is no mechanism for collective bargaining). The Act is silent on the duration of the working day, which in practice is regulated by company policy (Kuti and Obiokoye, 2021).
An employer may provide food, a dwelling place or any other allowance or privilege as a part of a worker's remuneration. No young person under the age of sixteen years shall be required to work for a longer period than four consecutive hours or permitted to work for more than eight working hours in any one day. 
There is a National Policy on Work Insurance under the PenCom (National Pension Commission under the National Pension Commission Act) 2004 which guarantees payment to workers when out of employment. According to this Act, each employer and employee is required to pay minimum 7.5% contribution to the Pension Scheme. The employer must also maintain a group life insurance policy for each employee for a minimum of three times the total annual salary of the employee and the premium must be paid not later than the date of commencement of the cover.
Child labour is prohibited. No child is lawfully to be employed or work in any capacity except where employed by a family member on light work of an agricultural, horticultural or domestic character approved by the Federal Minister for Employment Labour and Productivity. No young person is allowed to be employed during the night (FAO, 2021).
In terms of labor disputes, Art. 1 of the National Industrial Court Act (2006) establishes a specialist court, the NICN, with exclusive responsibility for handling employment-related disputes. 
Foreign workers
The Immigration Act (2015) prohibits companies from employing a foreign national without the permission of the Director General of Immigration, unless the Minister of the Interior grants a waiver or exemption by notice.33 Persons entering Nigeria for business purposes must obtain the Minister's consent (Kuti and Obiokoye, 2021). 
 
Legally required documents
  • Appropriate Job Descriptions
  • Company’ Identification Card
  • Employer’s register
  • Employment Contracts
  • Employment Terms and Conditions
  • Insurance Plans
  • Pension Schemes
Applicable legislation
VIEW LESS
1.12 Legal employment
Last updated on 2021-12-07 Forest companies hire workers illegally Specified RISK
Foreign forest companies, mostly Chinese, send their workers to Nigeria’s forest without officially registering them and obtaining required permission (First News, 2021).... VIEW MORE

Foreign forest companies, mostly Chinese, send their workers to Nigeria’s forest without officially registering them and obtaining required permission (First News, 2021).

References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Foreign workers work permit
2
Verify Salary slips
Salary slips shall be paid officially and declared by the employer according to requirements for personnel involved in harvesting activities
3
Consult Company workers
Consult with company workers: 1) to verify that they are legally employed. Ask if they are covered by the obligatory insurances from the company. 2) to verify that at least the legally established minimum salaries shall be paid for personnel involved in harvesting activities. 3) to verify the minimum age of employees 4) to verify that forced or compulsory labor is not involved in harvesting activities.
4
Visit Harvesting site
Visit the site and observe employees – if no children are employed.
5
Verify Employment Contracts
Verify that employment contracts include required information
Description of legal requirements
Workers shall have work contracts
VIEW MORE
<The Constitution of Nigeria includes stipulations on directing its policy to ensure that all citizens have the opportunity to secure adequate means of livelihood, humane and just work conditions, safeguard of personal health, safety and welfare, adequate medical protection, equal pay, and protection of children and young persons against exploitation.
Under the Labour Act, wages are protected in that the wages of a worker must in all contracts be made payable in legal tender and not otherwise at the agreed upon time. Provided that, where the period is more than one month, the wages shall become due and payable at intervals not exceeding one month. Subject to the Workmen's Compensation Act, a worker is entitled to be paid wages up to twelve working days per year during absence from work caused by temporary illness certified by a registered medical practitioner. Every worker shall be entitled after twelve months continuous service to a holiday with full pay of at least six working days or in the case of persons under the age of sixteen years at least twelve working days. 
Nigeria’s Labour Act (1999) states that an employer is required to provide an employee with a written employment contract within three months of the employee commencing work. The contract must contain:
•    the name of the employer, or group of employers.
•    the worker's name, address, position, and date of engagement.
•    the nature of the employment.
•    the date of expiry if a fixed term contract.
•    the notice period for termination.
•    wages, frequency of payment and method of calculation.
•    hours of work, holiday pay and conditions for incapacity owing to sickness and injury; and
•    any special conditions of the contract.
The contract must be signed to make it legally binding, as the employee's signature conveys acceptance of terms. The NICN may ignore express contractual terms if they are inconsistent with the reality of the relationship between the parties. The Labour Act allows parties to change or amend terms after execution, requiring the employer to inform the worker of the nature of the change by a written statement not more than one month after it is made. If a copy of the statement is not left in the worker's possession, he or she must be given reasonable access to it during his or her employment. 
Pursuant to the Labour Act, normal working hours under any employment contract shall be fixed by agreement, by any collective bargaining process within the organisation or industry, or by an industrial wages board (where there is no mechanism for collective bargaining). The Act is silent on the duration of the working day, which in practice is regulated by company policy (Kuti and Obiokoye, 2021).
An employer may provide food, a dwelling place or any other allowance or privilege as a part of a worker's remuneration. No young person under the age of sixteen years shall be required to work for a longer period than four consecutive hours or permitted to work for more than eight working hours in any one day. 
There is a National Policy on Work Insurance under the PenCom (National Pension Commission under the National Pension Commission Act) 2004 which guarantees payment to workers when out of employment. According to this Act, each employer and employee is required to pay minimum 7.5% contribution to the Pension Scheme. The employer must also maintain a group life insurance policy for each employee for a minimum of three times the total annual salary of the employee and the premium must be paid not later than the date of commencement of the cover.
Child labour is prohibited. No child is lawfully to be employed or work in any capacity except where employed by a family member on light work of an agricultural, horticultural or domestic character approved by the Federal Minister for Employment Labour and Productivity. No young person is allowed to be employed during the night (FAO, 2021).
In terms of labor disputes, Art. 1 of the National Industrial Court Act (2006) establishes a specialist court, the NICN, with exclusive responsibility for handling employment-related disputes. 
Foreign workers
The Immigration Act (2015) prohibits companies from employing a foreign national without the permission of the Director General of Immigration, unless the Minister of the Interior grants a waiver or exemption by notice.33 Persons entering Nigeria for business purposes must obtain the Minister's consent (Kuti and Obiokoye, 2021). 
Legally required documents
  • Appropriate Job Descriptions
  • Company’ Identification Card
  • Employer’s register
  • Employment Contracts
  • Employment Terms and Conditions
  • Insurance Plans
  • Pension Schemes
Applicable legislation
VIEW LESS
1.12 Legal employment
Last updated on 2021-12-07 The workforce engaged in forestry operations does not conform with the minimum number of staff required to participate in PenCom Scheme  Specified RISK
The workforce engaged in forestry operations does not conform with the minimum number of staff required to participate in PenCom Scheme and Government Minimum Wage Regime (Stakeholder workshop, November 2019).Invariably most workers in forestry operations are on casual employment and operate on daily pay or ‘pay-as-you-go’ basis which makes it difficult for them to enjoy the stipulated work insurance. Furthermore, they are hardly exposed to t... VIEW MORE

The workforce engaged in forestry operations does not conform with the minimum number of staff required to participate in PenCom Scheme and Government Minimum Wage Regime (Stakeholder workshop, November 2019).

Invariably most workers in forestry operations are on casual employment and operate on daily pay or ‘pay-as-you-go’ basis which makes it difficult for them to enjoy the stipulated work insurance. Furthermore, they are hardly exposed to training in basic skills to effectively perform their duties (Stakeholder workshop, November 2019).

References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Foreign workers work permit
2
Verify Salary slips
Salary slips shall be paid officially and declared by the employer according to requirements for personnel involved in harvesting activities
3
Consult Company workers
Consult with company workers: 1) to verify that they are legally employed. Ask if they are covered by the obligatory insurances from the company. 2) to verify that at least the legally established minimum salaries shall be paid for personnel involved in harvesting activities. 3) to verify the minimum age of employees 4) to verify that forced or compulsory labor is not involved in harvesting activities.
4
Visit Harvesting site
Visit the site and observe employees – if no children are employed.
5
Verify Employment Contracts
Verify that employment contracts include required information
Description of legal requirements
Workers shall participate in PenCom Scheme
VIEW MORE
The Constitution of Nigeria includes stipulations on directing its policy to ensure that all citizens have the opportunity to secure adequate means of livelihood, humane and just work conditions, safeguard of personal health, safety and welfare, adequate medical protection, equal pay, and protection of children and young persons against exploitation.
Under the Labour Act, wages are protected in that the wages of a worker must in all contracts be made payable in legal tender and not otherwise at the agreed upon time. Provided that, where the period is more than one month, the wages shall become due and payable at intervals not exceeding one month. Subject to the Workmen's Compensation Act, a worker is entitled to be paid wages up to twelve working days per year during absence from work caused by temporary illness certified by a registered medical practitioner. Every worker shall be entitled after twelve months continuous service to a holiday with full pay of at least six working days or in the case of persons under the age of sixteen years at least twelve working days. 
Nigeria’s Labour Act (1999) states that an employer is required to provide an employee with a written employment contract within three months of the employee commencing work. The contract must contain:
•    the name of the employer, or group of employers.
•    the worker's name, address, position, and date of engagement.
•    the nature of the employment.
•    the date of expiry if a fixed term contract.
•    the notice period for termination.
•    wages, frequency of payment and method of calculation.
•    hours of work, holiday pay and conditions for incapacity owing to sickness and injury; and
•    any special conditions of the contract.
The contract must be signed to make it legally binding, as the employee's signature conveys acceptance of terms. The NICN may ignore express contractual terms if they are inconsistent with the reality of the relationship between the parties. The Labour Act allows parties to change or amend terms after execution, requiring the employer to inform the worker of the nature of the change by a written statement not more than one month after it is made. If a copy of the statement is not left in the worker's possession, he or she must be given reasonable access to it during his or her employment. 
Pursuant to the Labour Act, normal working hours under any employment contract shall be fixed by agreement, by any collective bargaining process within the organisation or industry, or by an industrial wages board (where there is no mechanism for collective bargaining). The Act is silent on the duration of the working day, which in practice is regulated by company policy (Kuti and Obiokoye, 2021).
An employer may provide food, a dwelling place or any other allowance or privilege as a part of a worker's remuneration. No young person under the age of sixteen years shall be required to work for a longer period than four consecutive hours or permitted to work for more than eight working hours in any one day. 
There is a National Policy on Work Insurance under the PenCom (National Pension Commission under the National Pension Commission Act) 2004 which guarantees payment to workers when out of employment. According to this Act, each employer and employee is required to pay minimum 7.5% contribution to the Pension Scheme. The employer must also maintain a group life insurance policy for each employee for a minimum of three times the total annual salary of the employee and the premium must be paid not later than the date of commencement of the cover.
Child labour is prohibited. No child is lawfully to be employed or work in any capacity except where employed by a family member on light work of an agricultural, horticultural or domestic character approved by the Federal Minister for Employment Labour and Productivity. No young person is allowed to be employed during the night (FAO, 2021).
In terms of labor disputes, Art. 1 of the National Industrial Court Act (2006) establishes a specialist court, the NICN, with exclusive responsibility for handling employment-related disputes. 
Foreign workers
The Immigration Act (2015) prohibits companies from employing a foreign national without the permission of the Director General of Immigration, unless the Minister of the Interior grants a waiver or exemption by notice.33 Persons entering Nigeria for business purposes must obtain the Minister's consent (Kuti and Obiokoye, 2021). 
 
Legally required documents
  • Appropriate Job Descriptions
  • Company’ Identification Card
  • Employer’s register
  • Employment Contracts
  • Employment Terms and Conditions
  • Insurance Plans
  • Pension Schemes
Applicable legislation
VIEW LESS
1.13 Customary rights
Last updated on 2021-12-07 Individuals living on the land do not hold Certificate of Occupancy Specified RISK
The Land Use Act has never been fully operational as most people, especially rural dwellers, are unaware of the Act and have not applied for Certificate of Occupancy. Even in some urban areas, customary and Sharia law still governs the rights and obligations relating to land (Williams 1992; Kuruk; Olayiwola and Adeleye 2006). The few individuals that are willing to apply for Certificate of Occupancy are discouraged by the tedious and long process... VIEW MOREThe Land Use Act has never been fully operational as most people, especially rural dwellers, are unaware of the Act and have not applied for Certificate of Occupancy. Even in some urban areas, customary and Sharia law still governs the rights and obligations relating to land (Williams 1992; Kuruk; Olayiwola and Adeleye 2006). The few individuals that are willing to apply for Certificate of Occupancy are discouraged by the tedious and long process of application. By implication, it means the trees on lands without the necessary Certificate of Occupancy are not secured – communities can not document their rights to the land and at the same time for the benefits from timber harvested in communal lands. 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verification
1
Verify Certificate of Occupancy
Review the Certificate of Occupancy of communities. Ask for evidence from logging operators proving that benefits were transferred to local communities
2
Verify Local communities
Local communities where harvesting was taken place to ensure that they received benefits from harvesting operations
Description of legal requirements
Certificate of Ocupancy shall be issued for people living on the land
VIEW MORE
Under the Land Use Act, all land in Nigeria is vested in the government. The Land Use Act recognizes two types of occupancy rights:
Statutory right of occupancy. Under the Land Use Act, individuals and entities can obtain a statutory right of occupancy for urban and non-urban land. Statutory occupancy rights are granted for a definite term, which is set forth in the Certificate of Occupancy. Recipients of certificates of occupancy are obligated to pay the state for any unexhausted improvements (i.e., improvements with continuing value such as a building or establishing irrigation system) on the land at the time the recipient takes possession and must pay rent fixed by the state. Rights are transferable with the authorization of the state governor (Land Use Act 1978).
Customary right of occupancy. State governments may grant customary rights of occupancy to land in any non-urban area to any person or organization for agricultural, residential, and other purposes, including grazing and other customary purposes ancillary to agricultural use. The term for customary rights (which is contained in the application form and not the legislation) is 50 years and may be renewed for a second 50-year term. Recipients of customary rights of occupancy must pay annual tax on the land and cannot transfer any portion of the rights absent approval of the governor (for sales of rights) or the local government (other transfers) (Land Use Act 1978; Kuruk n.d.).
In contrast to the occupancy system in the Land Use Act, Nigeria’s customary land tenure system allows for flexible leases, rentals, pledges, and borrowing arrangements that adapt to the needs and circumstances of different communities, such as new or temporary populations in a remote community (e.g., migrant laborers), or relocated populations of professionals residing in urban areas and seeking land to farm on the outskirts of cities. All community lands are vested in the heads and leaders of the communities.
Under customary law that governs much of the country, all members of a rural community are entitled to have use of a portion of land, which they receive through inheritance, allocation by the chief, leasing, borrowing, pledge, or gift. Almost all urban landholders obtain their land-rights by purchase or inheritance. Separate members of a household or community may have separate rights to the same plot of land and the crops, trees, and improvements on that plot. The multiple rights may have a range of durations, e.g., one-time use, license to take production from fruit trees, access for a cropping season, and perpetual rights of access to the land and its production. The state government allocates a certain proportion of proceeds from wood harvested in communal lands to the local communities as part of their benefit sharing opportunity. Stability in land occupation through Customary land rights for forestry activities presupposes the legality of timber therefrom. 
Examples of state legislation:
In Cross River State, a community forest reserve may be constituted by the Forestry Commission for overriding public interest. Furthermore, every community or village has the right to establish Community Based Forest Management Associations, which are tasked with the management of the forest area together with the Commission and other forest stakeholders.
 
Legally required documents
  • Family inheritance
  • Memorandum of Understanding
  • Minutes of preliminary investigation before taking certain decisions
  • Report of information meetings and awareness about the allocation of Forests
  • Report of receipt of equipment and materials for the benefit of local communities
  • Certificate of Occupancy
Applicable legislation
VIEW LESS
1.16 Classification of species, quantities, qualities
Last updated on 2021-12-07 False declarations are made regarding species and their volume on transport permits Specified RISK
Forestry officials are not among the government agencies mandated to control export of goods through the Nigerian ports. The agencies with the statutory responsibilities to monitor and control export of goods from the Nigerian ports do not have the requisite skills to ascertain forest related products. Consequently, there exists a strong gap in outright poor classification of species with regards to trade and transport in Nigeria until Forest off... VIEW MOREForestry officials are not among the government agencies mandated to control export of goods through the Nigerian ports. The agencies with the statutory responsibilities to monitor and control export of goods from the Nigerian ports do not have the requisite skills to ascertain forest related products. Consequently, there exists a strong gap in outright poor classification of species with regards to trade and transport in Nigeria until Forest officials are properly mandated to handle that task. Based on low CPI, and lack of enforcement there is found to be a risk of wrongful classification (Stakeholder workshop, November 2019).
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verification
1
Verify Log Evacuation Schedule
2
Verify Import/export Customs Declaration
Check is the information of product description, species, quantity/volume, quality, price the same as on the commercial invoice and packing list? Evidence shall be provided upon request (photographs of labelling)
3
Visit Transport site
Physical control where it should be verified that the present material equals what has been invoices and marked
Description of legal requirements
Species and their volumes shall be correctly declared on transport permits
VIEW MORE
The Forestry Inventory Unit of the States’ Department of Forestry specifies the guidelines for classifying timber in terms of species, volume and qualification prior its sale and movement. However, for timber species that have been classified as protected or endangered, their requirements are stipulated in the CITES List according to the Convention on International Trade in Endangered Species of Wild Fauna and Flora CITES Act,2016.
Each State’s Forestry Department is expected to have a team of specialists with the responsibility of classifying Timber prior to Harvesting while the Federal Department of Forestry officials at the Pre-shipment unit are to be charged with the responsibility of determining the content of the final log export at the exit points.
 
Legally required documents
  • CITES Permit
  • Duly filled form containing details on ownership of processing factory, buyers and exporters of wood
  • Evidence of engagement in wood export business for the past three (3) years.
  • Evidence of Foreign Exchange/Repatriation of previous approval of CITES Permit issued.
  • Evidence of membership of an umbrella Wood Exporting Organization.
  • Family inheritance
  • Nigeria Export Promotion Council Certificate
  • Harvest permit (Block Permit)
Applicable legislation
VIEW LESS
1.17 Trade and transport
Last updated on 2021-12-07 Some unregistered vehicles may be engaged in movement of logs which have been illegally harvested  Specified RISK
Illegal transport of wood in breach of applicable legislation is evidenced in various states of Nigeria. According to Life360 (2019) local communities are being hired by Chinese companies in Central Nigeria to transport illegally logged timber from forest to the ports for shipment. No hammer marks and transport documents are mentioned to be used in the transportation process.  There may be cases of hammers falling into the wrong hands and some o... VIEW MOREIllegal transport of wood in breach of applicable legislation is evidenced in various states of Nigeria. According to Life360 (2019) local communities are being hired by Chinese companies in Central Nigeria to transport illegally logged timber from forest to the ports for shipment. No hammer marks and transport documents are mentioned to be used in the transportation process.  
There may be cases of hammers falling into the wrong hands and some officials pass hammering logs without following due process. Some unregistered vehicles may also be engaged in movement of logs which have been illegally harvested or fall short of control measures.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verification
1
Verify Vehicle for Timber Transportation Registration Invoice
All required transport documents shall exist and be documented. Documents related to transportation, trade or export shall be clearly linked to the specific material in question
2
Verify Tariff Table (Movement of round log)
All required transport documents shall exist and be documented. Documents related to transportation, trade or export shall be clearly linked to the specific material in question
3
Verify Permit to move log across the state
All required transport documents shall exist and be documented. Documents related to transportation, trade or export shall be clearly linked to the specific material in question
Description of legal requirements
Transport of harvested timber shall only be permormed after complaying with legal requirements
VIEW MORE
Under the Forest Regulations, an Assistant Conservator may require an applicant for a permit to mark every tree that they wish to have included in their permit. An Assistant Conservator may register any Marking hammer or marking instrument presented to him for registration and may issue a certificate of registration therefore upon the payment to him of a fee. The Assistant Conservator may refuse to register any marking hammer or marking instrument which gives an impression which they deem unsuitable.
In accordance with the Forest Law, a forest officer, administrative officer or police officer may stop any vehicle, vessel or raft which is transporting or moving forest produce on any road or inland waterway for the purpose of inspection. Where there is suspicion of an offense, any administrative officer, forest officer, or police officer not below the rank of assistant superintendent of police, may himself, or by any person, acting under their directions, seize any suspected forest produce. After obtaining an order of a magistrate, the officer may sell the produce, allocate to government use or destroy the forest produce.
Examples from state legislation:
In Enugu state, Forest Division pass hammer marks are mandatory and removing any timber prior to its marking constitutes an offense.
In Cross River State, with regard to evacuation of timber from an extraction site, no vehicle is allowed evacuate sawn timber from any extraction site in Cross River state, unless cleared by the forest officer having jurisdiction over the area where the timber is exploited within 7.30am and 6pm. 
 
Legally required documents
Applicable legislation
VIEW LESS
1.18 Offshore trading and transfer pricing
Last updated on 2021-12-07 Transfer pricing laws are not followed  Specified RISK
In 2020, Nigeria's Tax Appeal Tribunal (TAT) ruled in favour of FIRS in a landmark transfer pricing case for the plastic manufacturing company – it was the first major transfer pricing ruling since the introduction of Nigeria’s transfer pricing rules (PWC, 2021). There is not yet any evidence presenting transfer pricing compliance among timber harvesting companies. Thus, it is not possible to evaluate the risk for this sector at this poi... VIEW MOREIn 2020, Nigeria's Tax Appeal Tribunal (TAT) ruled in favour of FIRS in a landmark transfer pricing case for the plastic manufacturing company – it was the first major transfer pricing ruling since the introduction of Nigeria’s transfer pricing rules (PWC, 2021). 
There is not yet any evidence presenting transfer pricing compliance among timber harvesting companies. Thus, it is not possible to evaluate the risk for this sector at this point in time.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationStakeholder consultation
1
Verify Transfer pricing declaration
Ask company to verify that they submit the documents to electronically via https://transferpricing.firs.gov.ng/login.php
2
Verify Transfer pricing disclosure
Ask company to verify that they submit the documents to electronically via https://transferpricing.firs.gov.ng/login.php
3
Verify Master file
Ask company to verify that they submit the documents to electronically via https://transferpricing.firs.gov.ng/login.php
4
Verify Local file
Ask company to verify that they submit the documents to electronically via https://transferpricing.firs.gov.ng/login.php
5
Verify Country-by-country report (CbCR)
Ask company to verify that they submit the documents to electronically via https://transferpricing.firs.gov.ng/login.php
6
Consult Federal Inland Revenue Service
Federal Inland Revenue Service (FIRS) about company’s compliance with transfer pricing regulation
Description of legal requirements
Transfer pricing laws shall be followed
VIEW MORE
In 2016, Nigeria joined the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and committed to the implementation of the four minimum standards, which included the re-examination of transfer pricing documentation (Action 13).
In 2018, Income Tax (Transfer Pricing) Regulations was adopted. It is to be applied in a manner that is consistent with the OECD Transfer Pricing Guidelines (OECD TPG) for Multinational Enterprises and Tax Administrations 2017 and the UN's Practical Manual on Transfer Pricing (UN TP Manual) for Developing Countries 2017, as may be supplemented and updated from time to time. 
The scope of the 2018 Regulations includes all transactions that influence the taxable profit of connected entities, including distributions of dividend and capital contributions between connected persons (persons considered to be related, associated or connected under the Capital Gains Tax Act; the UN and OECD Model Tax Conventions; the OECD TPG, UN TP Manual and the Avoidance of Double Taxation Agreements between Nigeria and other countries). 
Filling requirements
The filing requirements for a Nigerian company include making a transfer pricing declaration and filing a transfer pricing disclosure. The taxpayer has the ultimate responsibility to prepare its transfer pricing documentation and any liability arising from non-compliance, inadequacies, defects or misstatements is for the account of the taxpayer.
Declaration
A Nigerian entity is required to declare its relationship with all connected persons resident in Nigeria or elsewhere by filing a declaration in the prescribed form within 18 months of its incorporation or within six months of the end of its accounting year, whichever is earlier. A Nigerian entity that fails to make or submit a declaration within the prescribed period shall pay an administrative penalty in the sum of 10 million naira and 10,000 naira for every day the failure continues. The Nigerian entity is required to file an updated declaration upon the occurrence of any changes in the organisation within six months of the end of the accounting year in which the change occurred.6 Failure to submit a declaration or notification in respect of such changes will attract a penalty of 25,000 naira for each day in which the failure continues.
Disclosure
It is mandatory for a Nigerian entity to annually disclose all eligible transactions with connected persons without notice or demand from the FIRS in the prescribed form within 18 months of its incorporation or within six months of the end of its accounting year, whichever is earlier. Failure to file a disclosure in the relevant year of assessment will attract an administrative penalty of 10 million naira or 1 per cent of the value of the controlled transaction not disclosed, whichever is higher; and 10,000 naira for every day the Nigerian entity remains in default.7 Where the Nigerian entity files an incorrect disclosure, the higher of an administrative penalty of 10 million naira or 1 per cent of the value of the controlled transaction not disclosed, will apply. The Nigerian entity can apply to the FIRS for an extension of time to make the relevant disclosure. Approval is subject to the discretion of the FIRS.
Documentation
A Nigerian entity has an obligation to keep in electronic format, sufficient data or information, along with an analysis of the information, to verify that the pricing of controlled transactions is consistent with the arm's-length principle and shall make the documentation available to the FIRS upon written request. The documentation shall be available prior to the due date for filing the income tax return for the year in which the documented transaction occurred. The documentation comprises a master file, a local file (contemporaneous documentation) and a country-by-country report (CbCR), where required.
The master file should include:
•    detailed description of the group's legal and ownership structure
•    geographical location of operating entities
•    service arrangements between members
•    sources of business profit
•    turnover
•    intangibles owned
•    all policies from the development to transfer of research within the group
•    financing arrangements
•    tax positions
•    annual consolidated financial statements
•    tax rulings on income allocation by jurisdiction.

The local file should provide detailed information relating to specific inter-company transactions between the Nigerian entity and connected enterprise, including:
•    functional analysis
•    value-chain analysis
•    comparability analysis of the transactions.

The country-by-country report (CbCR):
•    In addition to maintaining contemporaneous documentation, a company that is a member of an MNE  group with a total group revenue of 160 billion naira and above during the accounting year immediately preceding the year of assessment is required to file a CbCR.
A Nigerian entity with controlled transactions of a total value less than 300 million naira is not obliged to maintain contemporaneous documentation unless a notice is received from the FIRS demanding it.
In the event that the FIRS makes such a demand, the contemporaneous documentation must be submitted not later than 90 days from the date the FIRS notice was received. A company with controlled transactions of a total value that exceeds 300 million naira is required to submit contemporaneous documentation to the FIRS within 21 days of receiving a written request. Failure to meet the prescribed deadline will attract an administrative penalty of the sum of 10 million naira or 1 per cent of the total value of the controlled transactions, whichever is higher; and 10,000 naira for every day that the failure continues (Udo Udoma & Belo-Osagie, 2020). 
In 2020 FIRS launched electronic filing solution for transfer pricing, called E-TP PLAT 2.0 (https://transferpricing.firs.gov.ng/login.php) electronic filing solution will allow taxpayers with transfer pricing and country-by-country reporting (CbCR) obligations to file their annual transfer pricing and CbCR returns electronically (PWC, 2021).
 
Legally required documents
  • Country-by-country report (CbCR)
  • Transfer pricing declaration
  • Transfer pricing disclosure
Applicable legislation
VIEW LESS
1.19 Custom regulations
Last updated on 2021-12-07 Transport documents do not contain required information  Specified RISK
Evidence suggests that the 10,000+ containers, equivalent to at least 1.4 million logs and over US$300 million, were exported in violation of Nigeria’s federal log export ban, which only allows “processed products” of a certain dimension to lawfully leave the country (EIA, 2017).According to the Guardian (2021), most the main targets to be illegally exported are Rosewood (Pterocarpus Erinaceus), Araria, Mahogany (Khaya ivorensis) and Iroko ... VIEW MOREEvidence suggests that the 10,000+ containers, equivalent to at least 1.4 million logs and over US$300 million, were exported in violation of Nigeria’s federal log export ban, which only allows “processed products” of a certain dimension to lawfully leave the country (EIA, 2017).
According to the Guardian (2021), most the main targets to be illegally exported are Rosewood (Pterocarpus Erinaceus), Araria, Mahogany (Khaya ivorensis) and Iroko (Milicia excelsa) species. 
The World Wildlife Crime Report (WWCR) 2020 indicates that from around 2011 onwards growing volumes of rosewood were exported from West African, with a very sharp rise in 2017, when 825,000 cubic meters of Kosso (Pterocarpus Erinaceus) logs or the equivalent of about 4 million trees were exported from the region, predominantly from Nigeria (754,234 cubic metres). Indications are that most of the rosewood from West Africa has been sourced illegally. In October 2018, the CITES Standing Committee recommended that Parties suspend trade in rosewood from Nigeria until the country carries out a non-detriment findings assessment for trade in the species (see Sub-category 1.20 CITES).
The Customs and Excise department that oversees the final exit of wood out of Nigeria do not have the professional competence to ascertain the quality, species, etc. of the wood being exported. Consequently, vital information and details on the content of wood export are rarely included in the Bill of Lading. Re-export of wood is a rarity in Nigeria.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationDo not buyField verificationScientific testingStakeholder consultation
1
Do not buy
Do not import logs from Nigeria (only processed or semi-processed material can be exported)
2
Verify Export Registration Certificate
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
3
Verify Bill of Lading (B/L)
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
4
Verify Pre-shipment certificate
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
5
Verify Export permit
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
6
Consult Federal Inland Revenue Service
Consult Federal Inland Revenue Services about company’s compliance with customs regulations requirements
7
Visit Export site
Visit export site to check if export procedures are followed; check if exported wood dimensions are according to legal requirements
8
Conduct timber testing
Description of legal requirements
Transport documents shall include all required information
VIEW MORE
There is a regulation on export of only processed and semi processed wood (no logs or sawn timber are allowed) (Letter of Support for export of processed and semi-processed wood products, 2016). Export permit is issued for exportation of maximum 15,000 CBM of processed wood

The specification of a processed wood include maximum allowable dimensions:
1.    Length 280mm – 3600mm
2.    Width 35mm – 350mm
3.    Thickness 6mm-150mm

The Export Produce (Federal Powers) Act stipulates that the Minister charged with responsibility for external trade may, from time to time, make regulations prescribing grades and standards of quality for any produce intended for export, not being produce for export purchased by the relevant Commodity Board. 

The Customs and Excise Act stipulates specific provisions relating to the export of certain goods. This legislation also provides guidelines on the collection of taxes or duties for the export of products. The Nigerian Customs and Excise Tariff is based on the Customs Cooperation Council Nomenclature (CCCN).  Duties are either specific or ad valorem, depending on the commodity. Prior to export, the following authorities may perform due inspection: 
•    Nigerian Customs 
•    Port Authorities 
•    Nigerian Immigration
 
Legally required documents
Applicable legislation
VIEW LESS
1.19 Custom regulations
Last updated on 2021-12-07 Export of non-processed logs and sawn wood  Specified RISK
Evidence suggests that the 10,000+ containers, equivalent to at least 1.4 million logs and over US$300 million, were exported in violation of Nigeria’s federal log export ban, which only allows “processed products” of a certain dimension to lawfully leave the country (EIA, 2017).According to the Guardian (2021), most the main targets to be illegally exported are Rosewood (Pterocarpus Erinaceus), Araria, Mahogany (Khaya ivorensis) and Iroko ... VIEW MOREEvidence suggests that the 10,000+ containers, equivalent to at least 1.4 million logs and over US$300 million, were exported in violation of Nigeria’s federal log export ban, which only allows “processed products” of a certain dimension to lawfully leave the country (EIA, 2017).
According to the Guardian (2021), most the main targets to be illegally exported are Rosewood (Pterocarpus Erinaceus), Araria, Mahogany (Khaya ivorensis) and Iroko (Milicia excelsa) species. 
The World Wildlife Crime Report (WWCR) 2020 indicates that from around 2011 onwards growing volumes of rosewood were exported from West African, with a very sharp rise in 2017, when 825,000 cubic meters of Kosso (Pterocarpus Erinaceus) logs or the equivalent of about 4 million trees were exported from the region, predominantly from Nigeria (754,234 cubic metres). Indications are that most of the rosewood from West Africa has been sourced illegally. In October 2018, the CITES Standing Committee recommended that Parties suspend trade in rosewood from Nigeria until the country carries out a non-detriment findings assessment for trade in the species (see Sub-category 1.20 CITES).
The Customs and Excise department that oversees the final exit of wood out of Nigeria do not have the professional competence to ascertain the quality, species, etc. of the wood being exported. Consequently, vital information and details on the content of wood export are rarely included in the Bill of Lading. Re-export of wood is a rarity in Nigeria.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationScientific testingStakeholder consultation
1
Verify Export Registration Certificate
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
2
Verify Bill of Lading (B/L)
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
3
Verify Pre-shipment certificate
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
4
Verify Export permit
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
5
Consult Federal Inland Revenue Service
Consult Federal Inland Revenue Services about company’s compliance with customs regulations requirements
6
Visit Export site
Visit export site to check if export procedures are followed; check if exported wood dimensions are according to legal requirements
7
Conduct timber testing
Description of legal requirements
Only processed logs shall be exported
VIEW MORE
There is a regulation on export of only processed and semi processed wood (no logs or sawn timber are allowed) (Letter of Support for export of processed and semi-processed wood products, 2016). Export permit is issued for exportation of maximum 15,000 CBM of processed wood

The specification of a processed wood include maximum allowable dimensions:
1.    Length 280mm – 3600mm
2.    Width 35mm – 350mm
3.    Thickness 6mm-150mm

The Export Produce (Federal Powers) Act stipulates that the Minister charged with responsibility for external trade may, from time to time, make regulations prescribing grades and standards of quality for any produce intended for export, not being produce for export purchased by the relevant Commodity Board. 

The Customs and Excise Act stipulates specific provisions relating to the export of certain goods. This legislation also provides guidelines on the collection of taxes or duties for the export of products. The Nigerian Customs and Excise Tariff is based on the Customs Cooperation Council Nomenclature (CCCN).  Duties are either specific or ad valorem, depending on the commodity. Prior to export, the following authorities may perform due inspection: 
•    Nigerian Customs 
•    Port Authorities 
•    Nigerian Immigration
 
Legally required documents
Applicable legislation
VIEW LESS
1.19 Custom regulations
Last updated on 2021-12-07 Illegal timber export  Specified RISK
Evidence suggests that the 10,000+ containers, equivalent to at least 1.4 million logs and over US$300 million, were exported in violation of Nigeria’s federal log export ban, which only allows “processed products” of a certain dimension to lawfully leave the country (EIA, 2017).According to the Guardian (2021), most the main targets to be illegally exported are Rosewood (Pterocarpus Erinaceus), Araria, Mahogany (Khaya ivorensis) and Iroko ... VIEW MOREEvidence suggests that the 10,000+ containers, equivalent to at least 1.4 million logs and over US$300 million, were exported in violation of Nigeria’s federal log export ban, which only allows “processed products” of a certain dimension to lawfully leave the country (EIA, 2017).
According to the Guardian (2021), most the main targets to be illegally exported are Rosewood (Pterocarpus Erinaceus), Araria, Mahogany (Khaya ivorensis) and Iroko (Milicia excelsa) species. 
The World Wildlife Crime Report (WWCR) 2020 indicates that from around 2011 onwards growing volumes of rosewood were exported from West African, with a very sharp rise in 2017, when 825,000 cubic meters of Kosso (Pterocarpus Erinaceus) logs or the equivalent of about 4 million trees were exported from the region, predominantly from Nigeria (754,234 cubic metres). Indications are that most of the rosewood from West Africa has been sourced illegally. In October 2018, the CITES Standing Committee recommended that Parties suspend trade in rosewood from Nigeria until the country carries out a non-detriment findings assessment for trade in the species (see Sub-category 1.20 CITES).
The Customs and Excise department that oversees the final exit of wood out of Nigeria do not have the professional competence to ascertain the quality, species, etc. of the wood being exported. Consequently, vital information and details on the content of wood export are rarely included in the Bill of Lading. Re-export of wood is a rarity in Nigeria.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationScientific testingStakeholder consultation
1
Verify Export Registration Certificate
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
2
Verify Bill of Lading (B/L)
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
3
Verify Pre-shipment certificate
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
4
Verify Export permit
Verify that documents only include processed or semi-processed wood. It should be verified that the documents are fully filled out and there is consistency between the information in the documents and this information should be verified, and reflect the material imported from Nigeria.
5
Consult Federal Inland Revenue Service
Consult Federal Inland Revenue Services about company’s compliance with customs regulations requirements
6
Visit Export site
Visit export site to check if export procedures are followed; check if exported wood dimensions are according to legal requirements
7
Conduct timber testing
Description of legal requirements
Timber shall be exported following legal requirements
VIEW MORE
There is a regulation on export of only processed and semi processed wood (no logs or sawn timber are allowed) (Letter of Support for export of processed and semi-processed wood products, 2016). Export permit is issued for exportation of maximum 15,000 CBM of processed wood

The specification of a processed wood include maximum allowable dimensions:
1.    Length 280mm – 3600mm
2.    Width 35mm – 350mm
3.    Thickness 6mm-150mm

The Export Produce (Federal Powers) Act stipulates that the Minister charged with responsibility for external trade may, from time to time, make regulations prescribing grades and standards of quality for any produce intended for export, not being produce for export purchased by the relevant Commodity Board. 

The Customs and Excise Act stipulates specific provisions relating to the export of certain goods. This legislation also provides guidelines on the collection of taxes or duties for the export of products. The Nigerian Customs and Excise Tariff is based on the Customs Cooperation Council Nomenclature (CCCN).  Duties are either specific or ad valorem, depending on the commodity. Prior to export, the following authorities may perform due inspection: 
•    Nigerian Customs 
•    Port Authorities 
•    Nigerian Immigration
 
Legally required documents
Applicable legislation
VIEW LESS
1.20 CITES
Last updated on 2021-12-07 CITES species are exported without required permit Specified RISK
The Agency of the government (i.e. NESREA) responsible for enforcing CITES regulations are not present at the points of wood export in Nigeria. Furthermore, the Customs officials are not adequately trained to identify infractions on CITES classified items especially Pterocarpus erinaceus. The tendency for CITES species slipping out of the country is therefore imminent. In 2015, Nigeria had become the single largest exporter of the rosewood logs ... VIEW MOREThe Agency of the government (i.e. NESREA) responsible for enforcing CITES regulations are not present at the points of wood export in Nigeria. Furthermore, the Customs officials are not adequately trained to identify infractions on CITES classified items especially Pterocarpus erinaceus. The tendency for CITES species slipping out of the country is therefore imminent. 
In 2015, Nigeria had become the single largest exporter of the rosewood logs to China, accounting for 45 % of total imports to the country. By the end of 2015, 30 containers (20 ft) of rosewood were leaving Nigerian ports for China every day (InfoCongo, 2016). According to the Financial Nigeria (2018), the illegal export of precious rosewood has depleted the country’s forests; accelerated desertification in rural areas; and contributed to a staggering deforestation rate of four percent annually in Nigeria, the fourth highest in the world. 
EIA’s (2017) investigation has revealed that thousands of documents from the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) have been used in contravention of the core objectives of the Convention. The retrospective issuance of thousands of CITES permits is reportedly the result of a grand corruption scheme that involves over a million dollars paid by influential Chinese and Nigerian businessmen to senior Nigerian officials, some of the transaction facilitated by Chinese diplomats.
EIA’s (2018) new research indicates that well-organized traffickers are taking from the wild and exporting in violation of the CITES Convention as many specimens of Pterocarpus Erinaceus as materially possible, without any consideration for the impacts of the uncontrolled and massive harvest on the standing populations. Nigeria exported over one million cubic meters Round Wood Equivalent (RWE) of the African rosewood – approximately four million trees – from 2 January 2017 until 31 March 2018. This likely represents the largest violation of the Convention in history. EIA’s investigation shows that the first signs of commercial extinction of Pterocarpus Erinaceus have emerged, while pressure on the last stands of wild populations located in areas under protection is accelerating.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Do not buy
1
Due to high level of corruption and fraud related to issuing CITES certificates, control measures are not developed for this indicator – recommendation is to not to buy protected/CITES species form Nigeria.
Description of legal requirements
CITES species can only be exported with a legally issued special permit
VIEW MORE
The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Act was put in place to provide for the conservation and management of Nigeria’s wildlife and the protection of some of the species in danger of extinction as a result of overexploitation or habitat change (CITES ACT, 2016).
The National Environmental (Protection of Endangered Species in International Trade) Regulations regulates stipulate the Federal Ministry of Environment is designated as the CITES Management Authority for Nigeria.
National Environmental (Protection of Endangered Species in International Trade) Regulations state that in order to export or re-export from Nigeria species listed in CITES Appendix I, II, III – an export permit or re-export certificate must be obtained prior to exportation or re-exportation od CITES species. This however does not apply to rosewood (Pterocarpus erinaceus) - in October 2018, the CITES Standing Committee recommended that Parties suspend trade in rosewood from Nigeria until the country carries out a non-detriment findings assessment for trade in the species.
According to an official publication released by the Federal Department of Forestry (2019), the guidelines for CITES related issues include: 
•    Application for Letter of Support for Export of processed, semi processed and other allied wood products (Non – CITES Listed Wood Species) Indicating plant species, wood products and their various dimensions/sizes should be addressed to: The Honorable Minister of the Federal Ministry of Environment (Attention: Director of Forestry) 
•    Exporters’ Certificate must be re-validated on yearly basis.
•    The application for a renewal should be on the Company’s letter head paper addressed to Director of Forestry.
•    There must be an Evidence of previous Letter of Support.
•    There must be an Evidence of Federal Ministry of Finance Support Letter.
•    Certificate from the Corporate Affairs Commission.
•    Nigeria Export Promotion Council Certificate. 
•    Letter of request from prospective buyer
•    Evidence of afforestation plan by the company.
•    Evidence of revenue receipt from the State where the wood originated.
•    Evidence of wood export value repatriated by the Exporter (copies of NXP from the Bank).
•    Evidence of contribution to National Forestry Trust Fund. 
•    Evidence of Conversion Evaluation Report (C.E.R)
•    Designated Loading point.
•    A recommendation/Introduction letter from the Association of Wood Exporters of Nigeria.
•    Export Charges - #100,000 (payable to the Ministry)

According to the Endangered Species (Control of International Trade and Traffic) (Amendment) Act (2016) it is forbidden to trade plant species listed in the Schedule 1. 
 
Legally required documents
  • CITES Permit
  • Nigeria Export Promotion Council Certificate
Applicable legislation
VIEW LESS
1.20 CITES
Last updated on 2021-12-07 CITES permits are illegally issued  Specified RISK
The Agency of the government (i.e. NESREA) responsible for enforcing CITES regulations are not present at the points of wood export in Nigeria. Furthermore, the Customs officials are not adequately trained to identify infractions on CITES classified items especially Pterocarpus erinaceus. The tendency for CITES species slipping out of the country is therefore imminent. In 2015, Nigeria had become the single largest exporter of the rosewood logs ... VIEW MOREThe Agency of the government (i.e. NESREA) responsible for enforcing CITES regulations are not present at the points of wood export in Nigeria. Furthermore, the Customs officials are not adequately trained to identify infractions on CITES classified items especially Pterocarpus erinaceus. The tendency for CITES species slipping out of the country is therefore imminent. 
In 2015, Nigeria had become the single largest exporter of the rosewood logs to China, accounting for 45 % of total imports to the country. By the end of 2015, 30 containers (20 ft) of rosewood were leaving Nigerian ports for China every day (InfoCongo, 2016). According to the Financial Nigeria (2018), the illegal export of precious rosewood has depleted the country’s forests; accelerated desertification in rural areas; and contributed to a staggering deforestation rate of four percent annually in Nigeria, the fourth highest in the world. 
EIA’s (2017) investigation has revealed that thousands of documents from the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) have been used in contravention of the core objectives of the Convention. The retrospective issuance of thousands of CITES permits is reportedly the result of a grand corruption scheme that involves over a million dollars paid by influential Chinese and Nigerian businessmen to senior Nigerian officials, some of the transaction facilitated by Chinese diplomats.
EIA’s (2018) new research indicates that well-organized traffickers are taking from the wild and exporting in violation of the CITES Convention as many specimens of Pterocarpus Erinaceus as materially possible, without any consideration for the impacts of the uncontrolled and massive harvest on the standing populations. Nigeria exported over one million cubic meters Round Wood Equivalent (RWE) of the African rosewood – approximately four million trees – from 2 January 2017 until 31 March 2018. This likely represents the largest violation of the Convention in history. EIA’s investigation shows that the first signs of commercial extinction of Pterocarpus Erinaceus have emerged, while pressure on the last stands of wild populations located in areas under protection is accelerating.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Do not buy
1
Due to high level of corruption and fraud related to issuing CITES certificates, control measures are not developed for this indicator – recommendation is to not to buy protected/CITES species form Nigeria.
Description of legal requirements
CITES species can only be exported with a legally issued special permit
VIEW MORE
The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Act was put in place to provide for the conservation and management of Nigeria’s wildlife and the protection of some of the species in danger of extinction as a result of overexploitation or habitat change (CITES ACT, 2016).
The National Environmental (Protection of Endangered Species in International Trade) Regulations regulates stipulate the Federal Ministry of Environment is designated as the CITES Management Authority for Nigeria.
National Environmental (Protection of Endangered Species in International Trade) Regulations state that in order to export or re-export from Nigeria species listed in CITES Appendix I, II, III – an export permit or re-export certificate must be obtained prior to exportation or re-exportation od CITES species. This however does not apply to rosewood (Pterocarpus erinaceus) - in October 2018, the CITES Standing Committee recommended that Parties suspend trade in rosewood from Nigeria until the country carries out a non-detriment findings assessment for trade in the species.
According to an official publication released by the Federal Department of Forestry (2019), the guidelines for CITES related issues include: 
•    Application for Letter of Support for Export of processed, semi processed and other allied wood products (Non – CITES Listed Wood Species) Indicating plant species, wood products and their various dimensions/sizes should be addressed to: The Honorable Minister of the Federal Ministry of Environment (Attention: Director of Forestry) 
•    Exporters’ Certificate must be re-validated on yearly basis.
•    The application for a renewal should be on the Company’s letter head paper addressed to Director of Forestry.
•    There must be an Evidence of previous Letter of Support.
•    There must be an Evidence of Federal Ministry of Finance Support Letter.
•    Certificate from the Corporate Affairs Commission.
•    Nigeria Export Promotion Council Certificate. 
•    Letter of request from prospective buyer
•    Evidence of afforestation plan by the company.
•    Evidence of revenue receipt from the State where the wood originated.
•    Evidence of wood export value repatriated by the Exporter (copies of NXP from the Bank).
•    Evidence of contribution to National Forestry Trust Fund. 
•    Evidence of Conversion Evaluation Report (C.E.R)
•    Designated Loading point.
•    A recommendation/Introduction letter from the Association of Wood Exporters of Nigeria.
•    Export Charges - #100,000 (payable to the Ministry)

According to the Endangered Species (Control of International Trade and Traffic) (Amendment) Act (2016) it is forbidden to trade plant species listed in the Schedule 1. 
 
Legally required documents
  • CITES Permit
  • Nigeria Export Promotion Council Certificate
Applicable legislation
VIEW LESS
1.20 CITES
Last updated on 2021-12-07 Rosewood (Pterocarpus erinaceus) - illegal export of suspended CITES species Specified RISK
The Agency of the government (i.e. NESREA) responsible for enforcing CITES regulations are not present at the points of wood export in Nigeria. Furthermore, the Customs officials are not adequately trained to identify infractions on CITES classified items especially Pterocarpus erinaceus. The tendency for CITES species slipping out of the country is therefore imminent. In 2015, Nigeria had become the single largest exporter of the rosewood logs ... VIEW MOREThe Agency of the government (i.e. NESREA) responsible for enforcing CITES regulations are not present at the points of wood export in Nigeria. Furthermore, the Customs officials are not adequately trained to identify infractions on CITES classified items especially Pterocarpus erinaceus. The tendency for CITES species slipping out of the country is therefore imminent. 
In 2015, Nigeria had become the single largest exporter of the rosewood logs to China, accounting for 45 % of total imports to the country. By the end of 2015, 30 containers (20 ft) of rosewood were leaving Nigerian ports for China every day (InfoCongo, 2016). According to the Financial Nigeria (2018), the illegal export of precious rosewood has depleted the country’s forests; accelerated desertification in rural areas; and contributed to a staggering deforestation rate of four percent annually in Nigeria, the fourth highest in the world. 
EIA’s (2017) investigation has revealed that thousands of documents from the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) have been used in contravention of the core objectives of the Convention. The retrospective issuance of thousands of CITES permits is reportedly the result of a grand corruption scheme that involves over a million dollars paid by influential Chinese and Nigerian businessmen to senior Nigerian officials, some of the transaction facilitated by Chinese diplomats.
EIA’s (2018) new research indicates that well-organized traffickers are taking from the wild and exporting in violation of the CITES Convention as many specimens of Pterocarpus Erinaceus as materially possible, without any consideration for the impacts of the uncontrolled and massive harvest on the standing populations. Nigeria exported over one million cubic meters Round Wood Equivalent (RWE) of the African rosewood – approximately four million trees – from 2 January 2017 until 31 March 2018. This likely represents the largest violation of the Convention in history. EIA’s investigation shows that the first signs of commercial extinction of Pterocarpus Erinaceus have emerged, while pressure on the last stands of wild populations located in areas under protection is accelerating.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Do not buy
1
Do not buy

Due to high level of corruption and fraud related to issuing CITES certificates, control measures are not developed for this indicator – recommendation is to not to buy protected/CITES species form Nigeria.

Description of legal requirements
Export of Pterocarpus erinaceus is suspended
VIEW MORE
The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) Act was put in place to provide for the conservation and management of Nigeria’s wildlife and the protection of some of the species in danger of extinction as a result of overexploitation or habitat change (CITES ACT, 2016).
The National Environmental (Protection of Endangered Species in International Trade) Regulations regulates stipulate the Federal Ministry of Environment is designated as the CITES Management Authority for Nigeria.
National Environmental (Protection of Endangered Species in International Trade) Regulations state that in order to export or re-export from Nigeria species listed in CITES Appendix I, II, III – an export permit or re-export certificate must be obtained prior to exportation or re-exportation od CITES species. This however does not apply to rosewood (Pterocarpus erinaceus) - in October 2018, the CITES Standing Committee recommended that Parties suspend trade in rosewood from Nigeria until the country carries out a non-detriment findings assessment for trade in the species.
According to an official publication released by the Federal Department of Forestry (2019), the guidelines for CITES related issues include: 
•    Application for Letter of Support for Export of processed, semi processed and other allied wood products (Non – CITES Listed Wood Species) Indicating plant species, wood products and their various dimensions/sizes should be addressed to: The Honorable Minister of the Federal Ministry of Environment (Attention: Director of Forestry) 
•    Exporters’ Certificate must be re-validated on yearly basis.
•    The application for a renewal should be on the Company’s letter head paper addressed to Director of Forestry.
•    There must be an Evidence of previous Letter of Support.
•    There must be an Evidence of Federal Ministry of Finance Support Letter.
•    Certificate from the Corporate Affairs Commission.
•    Nigeria Export Promotion Council Certificate. 
•    Letter of request from prospective buyer
•    Evidence of afforestation plan by the company.
•    Evidence of revenue receipt from the State where the wood originated.
•    Evidence of wood export value repatriated by the Exporter (copies of NXP from the Bank).
•    Evidence of contribution to National Forestry Trust Fund. 
•    Evidence of Conversion Evaluation Report (C.E.R)
•    Designated Loading point.
•    A recommendation/Introduction letter from the Association of Wood Exporters of Nigeria.
•    Export Charges - #100,000 (payable to the Ministry)

According to the Endangered Species (Control of International Trade and Traffic) (Amendment) Act (2016) it is forbidden to trade plant species listed in the Schedule 1. 
 
Legally required documents
  • CITES Permit
  • Nigeria Export Promotion Council Certificate
Applicable legislation
VIEW LESS
1.23 Legal Registration of Business
Last updated on 2021-12-07 Companies operate without legal registration of business  Specified RISK
Some logging operators in the Timber supply chain do not register legally before going into operations yet their harvested logs find their way into the market. Furthermore, the capacity of State Forestry Departments to fish out non-registered loggers and entities whose operations contravene the permitted scope is highly limited (Stakeholder consultation, 2019). ... VIEW MORESome logging operators in the Timber supply chain do not register legally before going into operations yet their harvested logs find their way into the market. Furthermore, the capacity of State Forestry Departments to fish out non-registered loggers and entities whose operations contravene the permitted scope is highly limited (Stakeholder consultation, 2019). 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationStakeholder consultation
1
Verify Business Registration Certificate (Certificate of Incorporation)
Verify that the document include all the required information (some of the documents can be confirmed through an online search of duly registered company in Nigeria. Available at: http://publicsearch.cac.gov.ng/comsearch/)
2
Verify Business/ Company Profile
Verify that the document include all the required information (some of the documents can be confirmed through an online search of duly registered company in Nigeria. Available at: http://publicsearch.cac.gov.ng/comsearch/)
3
Verify Company's Memorandum and Article of Association (MEMART)
Verify that the document include all the required information (some of the documents can be confirmed through an online search of duly registered company in Nigeria. Available at: http://publicsearch.cac.gov.ng/comsearch/)
4
Verify Particulars of the company's secretary
Verify that the document include all the required information (some of the documents can be confirmed through an online search of duly registered company in Nigeria. Available at: http://publicsearch.cac.gov.ng/comsearch/)
5
Verify Particulars of shareholder(s)
Verify that the document include all the required information (some of the documents can be confirmed through an online search of duly registered company in Nigeria. Available at: http://publicsearch.cac.gov.ng/comsearch/)
6
Verify The Statement of issued share capital
Verify that the document include all the required information (some of the documents can be confirmed through an online search of duly registered company in Nigeria. Available at: http://publicsearch.cac.gov.ng/comsearch/)
7
Verify Particulars of Persons with Significant Control (PSC)
Verify that the document include all the required information (some of the documents can be confirmed through an online search of duly registered company in Nigeria. Available at: http://publicsearch.cac.gov.ng/comsearch/)
8
Verify Company Resolution & Certificate of Incorporation
Verify that the document include all the required information (some of the documents can be confirmed through an online search of duly registered company in Nigeria. Available at: http://publicsearch.cac.gov.ng/comsearch/)
9
Verify Identification of the director/shareholder & Witness
Verify that the document include all the required information (some of the documents can be confirmed through an online search of duly registered company in Nigeria. Available at: http://publicsearch.cac.gov.ng/comsearch/)
10
Verify Invoices about business registration fees paid
Verify that the document include all the required information (some of the documents can be confirmed through an online search of duly registered company in Nigeria. Available at: http://publicsearch.cac.gov.ng/comsearch/)
11
Consult Federal Inland Revenue Service
Consult Federal Inland Revenue Services about companies’ compliance with business registration requirements
Description of legal requirements
Company shall follow business registration requirements
VIEW MORE
With the amendment of the Companies and Allied Matters Act in 2020, which is the principal legislation that regulates business registration in Nigeria, there is a new and more simplified procedure for business registration in Nigeria. This new law took effect on January 1, 2021. The government agency in charge company registration is the Corporate Affairs Commission (CAC).
Procedure for business registration in Nigeria
The procedure involved in registering a business whether it is a private company limited by shares or a public company limited by shares, or an unlimited company will be summarized into different steps below.
•    Step 1. Conduct Name Availability Check – the applicant is required to choose two unique proposed names for the company, after which he has to check for availability of the proposed names, to find out if one of the names is available and it is not already in use by another company, where it is available, it will be reserved for the applicant by the CAC.
•    Step 2. Complete the Pre-registration Forms – the applicant can then proceed by himself or through an accredited agent to fill pre-incorporation forms where he will be required to provide certain important information such as:

1)    The approved name and the proposed type of company (is the company a private company, is it limited by shares, unlimited or public company, etc.)
2)    Description of principal business activity.
3)    The registered office address and head office address, where it is different from the registered office address, the company's email address, and the phone number.
4)    The applicant also has to prepare the Company's Memorandum and Article of Association (MEMART), it is advisable, that this be drafted professionally by a Legal Practitioner, However, the Corporate Affairs Commission has provided a generic MEMART, which can be adopted by a new company during registration.
5)    Particulars of the company's secretary. For small private companies, appointment of a secretary is optional, however, if the applicant decides to appoint a company secretary, he must provide the relevant details. Private companies (other than small companies) and public companies are required to appoint at least one secretary which could either be an individual a corporate secretary.
6)    The particulars of Directors such as their name, service, usual address, gender, nationality, date of birth, occupation, identity type, and phone number. It is however worthy to note that a small private company can now appoint only 1 director.
7)    Particulars of shareholder(s), which shall include the name, address, phone number and email address. A single person can be shareholder of a company, but where a company is to have more than one shareholder, the shareholding ratio (percentage of shares to be held by each shareholder).
8)    The Statement of issued share capital, the class and numbers of issued shares, and the rights attached to them such as voting rights, dividend distribution, capital distribution in the event of winding up, and whether the shares are liable to be redeemed or are liable to be redeemed at the option of the company or the shareholder, particulars of shareholders/subscribers and shareholding formula.
9)    Particulars of Persons with Significant Control (PSC), this could either be a Natural Person or a Legal Entity. A person with significant control means any person who directly or indirectly holds at least 5% of the shares/interest or voting rights in a company, has the right to appoint or remove a majority of the directors or partners, or can actually exercise significant influence or control over the company.

•    Step 3. Pay filing fee and Stamp duties – the applicant has to pay the prescribed official filing fee and stamp duties online or in bank through remita (Electronic Payment platform for businesses https://www.remita.net/) Upon payment, an electronic stamp will be affixed to the Memorandum and Articles of Association with some of the incorporation forms.
•    Step 4. Prepare and upload documents – the applicant has to scan and upload the necessary requirements, which include the valid identification of the director/shareholder & Witness; their signatures on plain sheet of papers; and any other relevant documents such as Company Resolution & Certificate of Incorporation where another company will be among the shareholders of the new company to be registered.
•    Step 5. Submission for registration - the step is to submit the application for approval, where it will be reviewed by the CAC and subsequently approved if it is in order.
In conclusion, it is now easier to register a business as applicants can now complete the entire process of registering their companies online using the new company registration online portal launched by the CAC in 2021. However, a person not familiar or understand rules and regulation guiding company registration in Nigeria is advised to contact any CAC accredited agent for registration to avoid unnecessary delays (Mondaq, 2021).
 
Legally required documents
  • Business/ Company Profile
  • Company Resolution & Certificate of Incorporation
  • Identification of the director/shareholder & Witness
  • Particulars of Persons with Significant Control (PSC)
  • Particulars of shareholder(s)
  • Particulars of the company's secretary
  • The Particulars of Directors
  • The Statement of issued share capital
  • Business Registration Certificate (Certificate of Incorporation)
Applicable legislation
VIEW LESS
1.24 Environmental Requirements for Processing
Last updated on 2021-12-07 Processing is performed without Environmental Impact Assessment Specified RISK
Legal enforcement of EIA is in Nigeria challenging. One of the reasons often cited is the overarching corruption of public officials charged with enforcing the laws. In addition, the process of EIA is somewhat tedious and expensive thus leading to circumvention by loggers. Enforcement of EIA by NESREA could be weak due to the lack of competent personnel competent personnel and material support (Adekunle, 2010; John Ishaku Mantu, 2019). Public pa... VIEW MORE

Legal enforcement of EIA is in Nigeria challenging. One of the reasons often cited is the overarching corruption of public officials charged with enforcing the laws. In addition, the process of EIA is somewhat tedious and expensive thus leading to circumvention by loggers. Enforcement of EIA by NESREA could be weak due to the lack of competent personnel competent personnel and material support (Adekunle, 2010; John Ishaku Mantu, 2019). 

Public participation is instrumental to ensuring compliance with Environmental Assessment. NESREA has a mandate to make available its report on environmental assessment to the public for further scrutiny and comments of experts and interested public individuals and groups. NESREA ought to be involved in massive education and awareness of the public on their roles regarding EIA. Many of the EIA reports are not made available to the public for comments (John Ishaku Mantu, 2019).

High scale illegal logging of has been identified as the main driver of degradation and loss of forests in various states. Residual waste left by loggers served as ready fuel for the wildfires during the dry season (Peter, D.D, 2020). VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Environmental Impact Assessement (EIA)
Verify that Environmental Impact Assessments is in place. Check that is has an approval from National Environmental Standards and Regulations Enforcement Agency (NESREA). Check who assessed EIA and verify he/she is registered with NESREA, Corporate Affairs Commission and Federal Inland Revenue Service (FIRS). Check that consultant provided the following documents for accreditation with NESREA: o Certificate of Incorporation with Corporate Affairs Commission; o Memorandum and Article of Association o Particulars of Directors of the Company; o Tax Clearance Certificates of the Company; o Evidence of competence in environmental consultancy; o Evidence of previous environmental jobs successfully completed; o Evidence of registration with other relevant regulatory bodies.
2
Consult NESREA
Consult with NESREA to verify that Environmental Impact Assessment was conducted following legal requirements. Consult relevant stakeholders (state administration for example) to confirm that NESREA followed legal requirements in conducting EIA
3
Visit Harvesting site
Verify onsite if the environmental requirements have been followed
4
Visit Harvesting site
Verify onsite if no waste was left by the loggers
Description of legal requirements
Environmental Impact Assessment shall be in place prior to harvesting
VIEW MORE
Legally required documents
  • Certificate of Incorporation with Corporate Affairs Commission
  • Company's Memorandum and Article of Association (MEMART)
  • Environmental Impact Assessement (EIA)
  • Evidence of competence in environmental consultancy
  • Evidence of registration with other relevant regulatory bodies
  • NESREA Regulatory documents
  • Particulars of Directors of the Company
  • Tax Clearance Certificate
Applicable legislation
VIEW LESS
1.26 Health and Safety in the Timber Processing Sector
Last updated on 2021-12-07 Obligations relating to the safety of the workers are not respected (no personal protective equipment; no health service centers to provide medical examinations before employment; no periodic medical examinations)  Specified RISK
Within forest harvesting, felling and crosscutting are the jobs most prone to serious accidents. Despite the legal requirements, most employees still go about their activities without the requisite protective equipment in place.  The employees in the forestry sector generally have little or no formal education and are not conversant with the health and safety requirements to undertake their assignments. The chainsaw is clearly the single most da... VIEW MOREWithin forest harvesting, felling and crosscutting are the jobs most prone to serious accidents. Despite the legal requirements, most employees still go about their activities without the requisite protective equipment in place.  The employees in the forestry sector generally have little or no formal education and are not conversant with the health and safety requirements to undertake their assignments. The chainsaw is clearly the single most dangerous tool and the chainsaw operator the most exposed worker in forestry operations in Nigeria. Available statistics indicate that accident rate in forestry operation is significantly higher per employee compared to other high risk economic sectors in different countries (Okon, Kufre, 2019).
These industries do not have health service centres to provide medical examinations before employment, periodic medical examinations to ensure they are fit for work and void of illnesses. There are no emergency treatment plans in place and also, health and safety measures are not usually followed during harvesting. (By virtue of Art. 67 (paragraphs e, f, g, i, l) of the Nigerian Labour Act 1971.
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Health safety reports
2
Verify Proof that new employees receive hygiene and security training
3
Consult Company workers
Interviews with staff and contractors shall confirm that legally required protection equipment is required/provided by the organization.
4
Visit Harvesting site
Verify onsite that all safety and health regulations are followed, and all required safety equipment is be used.
Description of legal requirements
Health and safety requirements shall be followed
VIEW MORE
Nigeria’s Labour Act (1999) requires that workers are trained in appropriate techniques to minimize the occurrence of job-related accidents. Also, they must be provided with the appropriate tools, outfits and kits for their activities. It also prohibits employment of underage persons (i.e. persons below the age of 16). 

The National Forest Policy of 2006 stipulates that the safety, health and security of forestry personnel as well as the sustainable management of the plants and animals’ habitats shall be of paramount consideration.

The National Policy on Occupational Safety and Health, also stipulates that the Ministry of Health collaborates with Federal Ministry of Labour and the National Information Management System (NIMS) on occupational accidents, injuries and diseases by providing relevant information on all such cases in medical facilities nationwide and also Regulate, monitor and evaluate medical practice in the area of occupational health.
 
Legally required documents
  • Certified conditions of working tools
  • First aids kits
  • Medical Certification
  • Safety kits
Applicable legislation
VIEW LESS
1.27 Legal Employment in The Timber Processing Sector
Last updated on 2021-12-07 Foreign workers work without required permission  Specified RISK
Nigerian people are prone to work for companies harvesting illegally, due to unemployment, poverty and the need for survival. Youths have come to realize that they can make quick money from the forest (Ikuomola et al, 2016). Foreign forest companies, mostly Chinese, send their workers to Nigeria’s forest without officially registering them and obtaining required permission (First News, 2021). The workforce engaged in forestry operations does ... VIEW MORENigerian people are prone to work for companies harvesting illegally, due to unemployment, poverty and the need for survival. Youths have come to realize that they can make quick money from the forest (Ikuomola et al, 2016). 
Foreign forest companies, mostly Chinese, send their workers to Nigeria’s forest without officially registering them and obtaining required permission (First News, 2021). 
The workforce engaged in forestry operations does not conform with the minimum number of staff required to participate in PenCom Scheme and Government Minimum Wage Regime (Stakeholder workshop, November 2019).
Invariably most workers in forestry operations are on casual employment and operate on daily pay or ‘pay-as-you-go’ basis which makes it difficult for them to enjoy the stipulated work insurance. Furthermore, they are hardly exposed to training in basic skills to effectively perform their duties (Stakeholder workshop, November 2019).
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Employment Contracts
Verify that employment contracts include required information
2
Verify Foreign workers work permit
3
Verify Salary slips
Salary slips shall be paid officially and declared by the employer according to requirements for personnel involved in harvesting activities
4
Consult Company workers
Consult with company workers: 1) to verify that they are legally employed. Ask if they are covered by the obligatory insurances from the company. 2) to verify that at least the legally established minimum salaries shall be paid for personnel involved in harvesting activities. 3) to verify the minimum age of employees 4) to verify that forced or compulsory labor is not involved in harvesting activities.
5
Visit Harvesting site
Visit the site and observe employees – if no children are employed.
Description of legal requirements
Foreign workers shall have a work permit
VIEW MORE
The Constitution of Nigeria includes stipulations on directing its policy to ensure that all citizens have the opportunity to secure adequate means of livelihood, humane and just work conditions, safeguard of personal health, safety and welfare, adequate medical protection, equal pay, and protection of children and young persons against exploitation.
Under the Labour Act, wages are protected in that the wages of a worker must in all contracts be made payable in legal tender and not otherwise at the agreed upon time. Provided that, where the period is more than one month, the wages shall become due and payable at intervals not exceeding one month. Subject to the Workmen's Compensation Act, a worker is entitled to be paid wages up to twelve working days per year during absence from work caused by temporary illness certified by a registered medical practitioner. Every worker shall be entitled after twelve months continuous service to a holiday with full pay of at least six working days or in the case of persons under the age of sixteen years at least twelve working days. 
Nigeria’s Labour Act (1999) states that an employer is required to provide an employee with a written employment contract within three months of the employee commencing work. The contract must contain:
•    the name of the employer, or group of employers.
•    the worker's name, address, position, and date of engagement.
•    the nature of the employment.
•    the date of expiry if a fixed term contract.
•    the notice period for termination.
•    wages, frequency of payment and method of calculation.
•    hours of work, holiday pay and conditions for incapacity owing to sickness and injury; and
•    any special conditions of the contract.
The contract must be signed to make it legally binding, as the employee's signature conveys acceptance of terms. The NICN may ignore express contractual terms if they are inconsistent with the reality of the relationship between the parties. The Labour Act allows parties to change or amend terms after execution, requiring the employer to inform the worker of the nature of the change by a written statement not more than one month after it is made. If a copy of the statement is not left in the worker's possession, he or she must be given reasonable access to it during his or her employment. 
Pursuant to the Labour Act, normal working hours under any employment contract shall be fixed by agreement, by any collective bargaining process within the organisation or industry, or by an industrial wages board (where there is no mechanism for collective bargaining). The Act is silent on the duration of the working day, which in practice is regulated by company policy (Kuti and Obiokoye, 2021).
An employer may provide food, a dwelling place or any other allowance or privilege as a part of a worker's remuneration. No young person under the age of sixteen years shall be required to work for a longer period than four consecutive hours or permitted to work for more than eight working hours in any one day. 
There is a National Policy on Work Insurance under the PenCom (National Pension Commission under the National Pension Commission Act) 2004 which guarantees payment to workers when out of employment. According to this Act, each employer and employee is required to pay minimum 7.5% contribution to the Pension Scheme. The employer must also maintain a group life insurance policy for each employee for a minimum of three times the total annual salary of the employee and the premium must be paid not later than the date of commencement of the cover.
Child labour is prohibited. No child is lawfully to be employed or work in any capacity except where employed by a family member on light work of an agricultural, horticultural or domestic character approved by the Federal Minister for Employment Labour and Productivity. No young person is allowed to be employed during the night (FAO, 2021).
In terms of labor disputes, Art. 1 of the National Industrial Court Act (2006) establishes a specialist court, the NICN, with exclusive responsibility for handling employment-related disputes. 
Foreign workers
The Immigration Act (2015) prohibits companies from employing a foreign national without the permission of the Director General of Immigration, unless the Minister of the Interior grants a waiver or exemption by notice.33 Persons entering Nigeria for business purposes must obtain the Minister's consent (Kuti and Obiokoye, 2021). 
Legally required documents
  • Appropriate Job Descriptions
  • Company’ Identification Card
  • Employer’s register
  • Employment Contracts
  • Employment Terms and Conditions
  • Insurance Plans
  • Pension Schemes
Applicable legislation
VIEW LESS
1.27 Legal Employment in The Timber Processing Sector
Last updated on 2021-12-07 Forest companies hire workers illegally  Specified RISK
Nigerian people are prone to work for companies harvesting illegally, due to unemployment, poverty and the need for survival. Youths have come to realize that they can make quick money from the forest (Ikuomola et al, 2016). Foreign forest companies, mostly Chinese, send their workers to Nigeria’s forest without officially registering them and obtaining required permission (First News, 2021). The workforce engaged in forestry operations does ... VIEW MORENigerian people are prone to work for companies harvesting illegally, due to unemployment, poverty and the need for survival. Youths have come to realize that they can make quick money from the forest (Ikuomola et al, 2016). 
Foreign forest companies, mostly Chinese, send their workers to Nigeria’s forest without officially registering them and obtaining required permission (First News, 2021). 
The workforce engaged in forestry operations does not conform with the minimum number of staff required to participate in PenCom Scheme and Government Minimum Wage Regime (Stakeholder workshop, November 2019).
Invariably most workers in forestry operations are on casual employment and operate on daily pay or ‘pay-as-you-go’ basis which makes it difficult for them to enjoy the stipulated work insurance. Furthermore, they are hardly exposed to training in basic skills to effectively perform their duties (Stakeholder workshop, November 2019).
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Employment Contracts
Verify that employment contracts include required information
2
Verify Foreign workers work permit
3
Verify Salary slips
Salary slips shall be paid officially and declared by the employer according to requirements for personnel involved in harvesting activities
4
Consult Company workers
Consult with company workers: 1) to verify that they are legally employed. Ask if they are covered by the obligatory insurances from the company. 2) to verify that at least the legally established minimum salaries shall be paid for personnel involved in harvesting activities. 3) to verify the minimum age of employees 4) to verify that forced or compulsory labor is not involved in harvesting activities.
5
Visit Processing site
Visit the site and observe employees – if no children are employed.
Description of legal requirements
Workers shall have work contracts
VIEW MORE
<The Constitution of Nigeria includes stipulations on directing its policy to ensure that all citizens have the opportunity to secure adequate means of livelihood, humane and just work conditions, safeguard of personal health, safety and welfare, adequate medical protection, equal pay, and protection of children and young persons against exploitation.
Under the Labour Act, wages are protected in that the wages of a worker must in all contracts be made payable in legal tender and not otherwise at the agreed upon time. Provided that, where the period is more than one month, the wages shall become due and payable at intervals not exceeding one month. Subject to the Workmen's Compensation Act, a worker is entitled to be paid wages up to twelve working days per year during absence from work caused by temporary illness certified by a registered medical practitioner. Every worker shall be entitled after twelve months continuous service to a holiday with full pay of at least six working days or in the case of persons under the age of sixteen years at least twelve working days. 
Nigeria’s Labour Act (1999) states that an employer is required to provide an employee with a written employment contract within three months of the employee commencing work. The contract must contain:
•    the name of the employer, or group of employers.
•    the worker's name, address, position, and date of engagement.
•    the nature of the employment.
•    the date of expiry if a fixed term contract.
•    the notice period for termination.
•    wages, frequency of payment and method of calculation.
•    hours of work, holiday pay and conditions for incapacity owing to sickness and injury; and
•    any special conditions of the contract.
The contract must be signed to make it legally binding, as the employee's signature conveys acceptance of terms. The NICN may ignore express contractual terms if they are inconsistent with the reality of the relationship between the parties. The Labour Act allows parties to change or amend terms after execution, requiring the employer to inform the worker of the nature of the change by a written statement not more than one month after it is made. If a copy of the statement is not left in the worker's possession, he or she must be given reasonable access to it during his or her employment. 
Pursuant to the Labour Act, normal working hours under any employment contract shall be fixed by agreement, by any collective bargaining process within the organisation or industry, or by an industrial wages board (where there is no mechanism for collective bargaining). The Act is silent on the duration of the working day, which in practice is regulated by company policy (Kuti and Obiokoye, 2021).
An employer may provide food, a dwelling place or any other allowance or privilege as a part of a worker's remuneration. No young person under the age of sixteen years shall be required to work for a longer period than four consecutive hours or permitted to work for more than eight working hours in any one day. 
There is a National Policy on Work Insurance under the PenCom (National Pension Commission under the National Pension Commission Act) 2004 which guarantees payment to workers when out of employment. According to this Act, each employer and employee is required to pay minimum 7.5% contribution to the Pension Scheme. The employer must also maintain a group life insurance policy for each employee for a minimum of three times the total annual salary of the employee and the premium must be paid not later than the date of commencement of the cover.
Child labour is prohibited. No child is lawfully to be employed or work in any capacity except where employed by a family member on light work of an agricultural, horticultural or domestic character approved by the Federal Minister for Employment Labour and Productivity. No young person is allowed to be employed during the night (FAO, 2021).
In terms of labor disputes, Art. 1 of the National Industrial Court Act (2006) establishes a specialist court, the NICN, with exclusive responsibility for handling employment-related disputes. 
Foreign workers
The Immigration Act (2015) prohibits companies from employing a foreign national without the permission of the Director General of Immigration, unless the Minister of the Interior grants a waiver or exemption by notice.33 Persons entering Nigeria for business purposes must obtain the Minister's consent (Kuti and Obiokoye, 2021). 
Legally required documents
  • Appropriate Job Descriptions
  • Company’ Identification Card
  • Employer’s register
  • Employment Contracts
  • Employment Terms and Conditions
  • Insurance Plans
  • Pension Schemes
Applicable legislation
VIEW LESS
1.27 Legal Employment in The Timber Processing Sector
Last updated on 2021-12-07 The workforce engaged in forestry operations does not conform with the minimum number of staff required to participate in PenCom Scheme  Specified RISK
Nigerian people are prone to work for companies harvesting illegally, due to unemployment, poverty and the need for survival. Youths have come to realize that they can make quick money from the forest (Ikuomola et al, 2016). Foreign forest companies, mostly Chinese, send their workers to Nigeria’s forest without officially registering them and obtaining required permission (First News, 2021). The workforce engaged in forestry operations does ... VIEW MORENigerian people are prone to work for companies harvesting illegally, due to unemployment, poverty and the need for survival. Youths have come to realize that they can make quick money from the forest (Ikuomola et al, 2016). 
Foreign forest companies, mostly Chinese, send their workers to Nigeria’s forest without officially registering them and obtaining required permission (First News, 2021). 
The workforce engaged in forestry operations does not conform with the minimum number of staff required to participate in PenCom Scheme and Government Minimum Wage Regime (Stakeholder workshop, November 2019).
Invariably most workers in forestry operations are on casual employment and operate on daily pay or ‘pay-as-you-go’ basis which makes it difficult for them to enjoy the stipulated work insurance. Furthermore, they are hardly exposed to training in basic skills to effectively perform their duties (Stakeholder workshop, November 2019).
 
References
VIEW LESS
The risk applies to the following source types
  • Forest Reserve
  • Free Areas
  • Plantation in Forest Reserve
  • Private Plantation
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Employment Contracts
Verify that employment contracts include required information
2
Verify Foreign workers work permit
3
Verify Salary slips
Salary slips shall be paid officially and declared by the employer according to requirements for personnel involved in harvesting activities
4
Consult Company workers
Consult with company workers: 1) to verify that they are legally employed. Ask if they are covered by the obligatory insurances from the company. 2) to verify that at least the legally established minimum salaries shall be paid for personnel involved in harvesting activities. 3) to verify the minimum age of employees 4) to verify that forced or compulsory labor is not involved in harvesting activities.
5
Visit Harvesting site
Visit the site and observe employees – if no children are employed.
Description of legal requirements
Workers shall participate in PenCom Scheme
VIEW MORE
<The Constitution of Nigeria includes stipulations on directing its policy to ensure that all citizens have the opportunity to secure adequate means of livelihood, humane and just work conditions, safeguard of personal health, safety and welfare, adequate medical protection, equal pay, and protection of children and young persons against exploitation.
Under the Labour Act, wages are protected in that the wages of a worker must in all contracts be made payable in legal tender and not otherwise at the agreed upon time. Provided that, where the period is more than one month, the wages shall become due and payable at intervals not exceeding one month. Subject to the Workmen's Compensation Act, a worker is entitled to be paid wages up to twelve working days per year during absence from work caused by temporary illness certified by a registered medical practitioner. Every worker shall be entitled after twelve months continuous service to a holiday with full pay of at least six working days or in the case of persons under the age of sixteen years at least twelve working days. 
Nigeria’s Labour Act (1999) states that an employer is required to provide an employee with a written employment contract within three months of the employee commencing work. The contract must contain:
•    the name of the employer, or group of employers.
•    the worker's name, address, position, and date of engagement.
•    the nature of the employment.
•    the date of expiry if a fixed term contract.
•    the notice period for termination.
•    wages, frequency of payment and method of calculation.
•    hours of work, holiday pay and conditions for incapacity owing to sickness and injury; and
•    any special conditions of the contract.
The contract must be signed to make it legally binding, as the employee's signature conveys acceptance of terms. The NICN may ignore express contractual terms if they are inconsistent with the reality of the relationship between the parties. The Labour Act allows parties to change or amend terms after execution, requiring the employer to inform the worker of the nature of the change by a written statement not more than one month after it is made. If a copy of the statement is not left in the worker's possession, he or she must be given reasonable access to it during his or her employment. 
Pursuant to the Labour Act, normal working hours under any employment contract shall be fixed by agreement, by any collective bargaining process within the organisation or industry, or by an industrial wages board (where there is no mechanism for collective bargaining). The Act is silent on the duration of the working day, which in practice is regulated by company policy (Kuti and Obiokoye, 2021).
An employer may provide food, a dwelling place or any other allowance or privilege as a part of a worker's remuneration. No young person under the age of sixteen years shall be required to work for a longer period than four consecutive hours or permitted to work for more than eight working hours in any one day. 
There is a National Policy on Work Insurance under the PenCom (National Pension Commission under the National Pension Commission Act) 2004 which guarantees payment to workers when out of employment. According to this Act, each employer and employee is required to pay minimum 7.5% contribution to the Pension Scheme. The employer must also maintain a group life insurance policy for each employee for a minimum of three times the total annual salary of the employee and the premium must be paid not later than the date of commencement of the cover.
Child labour is prohibited. No child is lawfully to be employed or work in any capacity except where employed by a family member on light work of an agricultural, horticultural or domestic character approved by the Federal Minister for Employment Labour and Productivity. No young person is allowed to be employed during the night (FAO, 2021).
In terms of labor disputes, Art. 1 of the National Industrial Court Act (2006) establishes a specialist court, the NICN, with exclusive responsibility for handling employment-related disputes. 
Foreign workers
The Immigration Act (2015) prohibits companies from employing a foreign national without the permission of the Director General of Immigration, unless the Minister of the Interior grants a waiver or exemption by notice.33 Persons entering Nigeria for business purposes must obtain the Minister's consent (Kuti and Obiokoye, 2021). 
Legally required documents
  • Appropriate Job Descriptions
  • Company’ Identification Card
  • Employer’s register
  • Employment Contracts
  • Employment Terms and Conditions
  • Insurance Plans
  • Pension Schemes
VIEW LESS
For smoother experience please switch do your desktop.
We are currently working on impoving our mobile interface. Thank you for your understanding.