Starting a Business - Nigeria

The NIPC Act allows foreign nationals to own up to 100% equity and invest in any business except items on the 'negative list' (Section 31): production of arms and ammunition, narcotics, and military/paramilitary wear and accoutrements.

Any company with foreign participation must have a minimum issued share capital of ₦100,000,000, a threshold required by the CAC and NIPC regardless of the percentage of foreign ownership.

Company formation is handled online via the Corporate Affairs Commission: reserve a name, file incorporation documents and pay statutory fees/stamp duty, then receive an electronic Certificate of Incorporation. A registered Nigerian office address is required.

Section 20 of the NIPC Act requires every enterprise with foreign participation to register with the NIPC; this is processed via NIPC Form 1 with a non-refundable processing fee, and the Commission states registration takes about 24 hours once complete documents are submitted.

A foreign-owned business needs a Business Permit (written consent of the Minister of Interior) to operate, plus Expatriate Quota positions to employ foreign staff — granted initially for 3 years, renewable in 2-year increments up to 10 years, with processing estimated at about 14 working days.

Foreign capital brought in should be backed by a Certificate of Capital Importation (CCI), which underpins guaranteed rights to repatriate profits, dividends and capital under the NIPC and Foreign Exchange frameworks.