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Start a business in Nigeria: law, taxes, wages, customs and logistics

Nigeria's economy looks diversified on the surface (services, agriculture, telecoms) but public revenue and foreign-exchange earnings remain dominated by oil and gas. Services drive growth, while manufacturing is held back by power and logistics costs; large projects such as the Dangote refinery are shifting the country toward local processing and import substitution.

Generate my business plan in Nigeria Common law

Nigeria at a glance

Currency	naira nigérian (₦)
Legal system	Common law
Time to register	Sole proprietorship/partnership: around 72 hours as advertised; limited liability company: a few working days via the CAC's iCRP portal (secondary source; not verified on the official site).
Cost to register	CAC filing fee (e.g. NGN 20,000 for NGN 1 million of share capital) plus 0.75% stamp duty on nominal capital (secondary source); minimum capital of NGN 100 million for foreign-owned companies.
VAT	7.5% standard rate (kept unchanged); the 2025 reform extends input-VAT credits.
Corporate income tax	30% for large companies (turnover above NGN 100 million or fixed assets above NGN 250 million); a new 4% development levy on taxable profits replaces several sector-specific taxes.
Minimum wage	National minimum wage of NGN 70,000 per month (2024 law).
Employer social contributions	Pension contributions of 10% (employer) and 8% (employee), plus NSITF at 1% and the Industrial Training Fund (ITF) levy at 1%, with an additional 2.5% employee contribution to the National Housing Fund (NHF).

Steps to register a company in Nigeria

Reserve the company name with the Corporate Affairs Commission (CAC) through the online portal
Draft the Memorandum & Articles of Association and declare shareholders and directors (persons with significant control)
File and register the company with the CAC (certificate of incorporation)
Since 1 January 2026, the CAC's RC number doubles as the tax identifier (Nigeria Tax Act 2025); complete registration with the tax authority (NRS, formerly FIRS)
Register for VAT and withholding tax with the tax authority
Enrol with the NSITF social insurance fund, the PenCom pension scheme and the Industrial Training Fund (ITF) where headcount requires it
Open a corporate bank account and obtain any required sector or municipal licences

Common legal forms

Form	Minimum capital
LTD — Private company limited by shares (Ltd)	none
PLC — Public limited company	—
BN — Business name (sole proprietorship)	none
LLP — Limited liability partnership	none

Investment code

The NIPC Act requires mandatory registration of foreign-capital companies and provides guarantees on capital transfer. The former Pioneer Status Incentive (PSI) has been replaced by the Economic Development Incentive (EDTI) under the Nigeria Tax Act 2025: an annual 5% tax credit on eligible investment spending in priority sectors, tied to actual investment made.

Taxation in Nigeria

Small companies (turnover up to NGN 100 million and fixed assets under NGN 250 million): exempt from corporate income tax, capital gains tax and the development levy (Nigeria Tax Act 2025)
General regime for all other companies
Withholding tax: 10% withholding tax on dividends, interest and royalties, for both residents and non-residents, unless reduced by a tax treaty (PwC).
Incentives: Economic Development Incentive (5% annual tax credit on eligible investment) replacing the former Pioneer Status; free-zone incentives under NEPZA; various sector-specific regimes.

Employment, wages and social contributions in Nigeria

Minimum wage: National minimum wage of NGN 70,000 per month (2024 law).
Rough order of magnitude for a qualified employee in the urban formal sector (a manager/senior technician earns substantially more), converted at an approximate 2026 exchange rate; figures should be validated locally.
Employer contributions: Pension contributions of 10% (employer) and 8% (employee), plus NSITF at 1% and the Industrial Training Fund (ITF) levy at 1%, with an additional 2.5% employee contribution to the National Housing Fund (NHF).
The labour market is largely informal: hiring without a contract or registration is common but exposes employers to labour-inspection checks and PenCom back-payment claims. A gradual formalisation path is recommended: registered internships/apprenticeships, then declared fixed-term contracts, then permanent contracts under a simplified tax regime.

Customs and trade in Nigeria

The list of import-prohibited goods, licensing requirements and restricted access to foreign exchange are the main trade barriers; targeted restrictions on raw-material exports have also been used to encourage local processing.

ECOWAS (free trade area; ECOWAS Common External Tariff partially applied)
AfCFTA (ratified, progressive implementation)
EU Economic Partnership Agreement (ECOWAS-EU regime not applied by all member states)
AGOA: reauthorised through 31 December 2026 (2026 finance act); country eligibility set by the annual USTR list
Various bilateral agreements and preferential regimes

Logistics in Nigeria

Lagos (Apapa, Tin Can) and Lekki Deep Sea Port — The main container gateway; Lekki is a deep-sea port operating since 2023.

Onne and Port Harcourt — Oil and industrial ports in the Niger Delta.

Calabar — Port serving the south-eastern free-trade zone.

Corridor Lagos–Abidjan corridor (ECOWAS) — Major coastal trade corridor; highway works are in preparation.

Corridor Lagos–Kano / Northern corridor — Road and rail corridor toward the north of the country and into Niger.

Port turnaround times in Lagos remain high due to congestion and multiple inspection points — see the World Bank's logistics performance indicators for benchmarks.

Financing in Nigeria

Central bank: Central Bank of Nigeria (CBN); Nigeria is not part of a shared currency zone but is a member of the West African Monetary Zone (WAMZ).
Banking system: About twenty well-capitalised commercial banks, recapitalised under new CBN requirements (2024-2026). Lending rates are high, often above 25%, reflecting a restrictive monetary policy stance.
Exchange regime: Managed float in place since 2023, with a unified foreign-exchange market (NFEM); convertibility is de facto available but access to hard currency remains tight, with past restrictions on certain products.
Stock exchange: Nigerian Exchange Group (NGX), one of the leading stock exchanges in Sub-Saharan Africa.
Mobile money: Opay, PalmPay, MoMo PSB (MTN), Airtel SmartCash, Paga, Moniepoint

Key sectors in Nigeria

Financial services and fintech — Payments, neobanks and payment infrastructure concentrated in Lagos.
Telecommunications and digital — A very large mobile market with strong adoption of instant payments.
Oil, gas and petrochemicals — The main source of foreign-exchange earnings, with growing local refining and LNG capacity.
Agro-industry and processing — Palm oil, cocoa, sesame, cassava, poultry and milling, backed by strong domestic demand.
Cement, building materials and fertiliser — Local groups exporting across the region (cement, urea).
Creative industries — Music, film and entertainment with continent-wide reach.

Local institutions in Nigeria

Federal Ministry of Industry, Trade and Investment (FMITI) — Abuja. Government ministry overseeing trade, industrial and investment policy. fmiti.gov.ng
Federal Ministry of Finance (FMF) — Abuja. Budget, tax policy and public debt. finance.gov.ng
Nigerian Investment Promotion Commission (NIPC) — Abuja. Registers foreign investors and administers investment incentives. nipc.gov.ng
Corporate Affairs Commission (CAC) — Abuja. Companies register: online name reservation and incorporation via the iCRP portal. icrp.cac.gov.ng
Nigerian Export Promotion Council (NEPC) — Abuja. Supports non-oil exporters. nepc.gov.ng
Bank of Industry (BOI) — Lagos. Development bank offering long-term loans to industry and SMEs. boi.ng
National Pension Commission (PenCom) — Abuja. Regulates pensions and employer compliance. pencom.gov.ng
Nigeria Social Insurance Trust Fund (NSITF) — Abuja. Social insurance and workplace accident compensation. nsitf.gov.ng
Central Bank of Nigeria (CBN) — Abuja. Monetary policy, foreign-exchange market and banking regulation. cbn.gov.ng
National Bureau of Statistics (NBS) — Abuja. Official national statistics: GDP, prices, employment and trade data. nigerianstat.gov.ng

Frequently asked questions

How long does it take to register a company in Nigeria?

A sole proprietorship or partnership can reportedly be registered in around 72 hours, while a limited liability company typically takes a few working days through the CAC's iCRP online portal (secondary source).

How much does it cost to register a company in Nigeria?

Expect a CAC filing fee (e.g. around NGN 20,000 for NGN 1 million of share capital) plus a 0.75% stamp duty on nominal capital; foreign-owned companies need a minimum capital of NGN 100 million.

What is the VAT rate in Nigeria?

The standard VAT rate is 7.5%, with the 2025 tax reform extending input-VAT credits for businesses.

What is the corporate income tax rate in Nigeria?

Large companies (turnover above NGN 100 million) pay 30% corporate income tax plus a new 4% development levy; small companies below the turnover threshold are exempt.

What is the minimum wage in Nigeria?

The national minimum wage is NGN 70,000 per month, set by a 2024 law.

Is Nigeria a common law or civil law country?

Nigeria applies common law of English origin, with Islamic personal and criminal law in some northern states. It is not a member of the OHADA system.

What is Nigeria's currency?

The Nigerian naira (NGN), under a managed float since 2023 with a unified foreign-exchange market; access to hard currency can still be tight.

What are Nigeria's main ports?

Lagos (Apapa, Tin Can and the Lekki Deep Sea Port) is the main container gateway, alongside Onne/Port Harcourt for oil and industrial cargo and Calabar in the south-east.

Sources

Create my business plan in Nigeria

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