Investment Guide: Doing Business In Nigeria

Investment Guide: Doing Business In Nigeria

With immense growth in technology and globalization, cross-border investments have taken prime positions in global economies. As a developing country with immeasurable growth potential, Nigeria ranks as the largest oil producer in Africa and the 11th largest oil producer in the world. Aside from available oil and gas reserves, Nigeria has enormous mineral resources, such as iron ore, bitumen, gold, coal, bauxite, bronze etc. As at 2018, the gross domestic product (GDP) of Nigeria was estimated at USD 397 billion. 

Leveraging on its demographic advantage as most populous country in Africa as well as the biggest economy, Nigeria sets its path as the most preferred investment destination for investors looking to onboard into Africa’s largest emerging market. This is further accentuated by the ever-developing economic and structural reform targeted at making the country a hive for ease of doing business. 

Achieving holistic tax reform and creating a business-friendly environment is one of the key objectives of the present administration. This gave rise to the establishment of the Presidential Enabling Business Environment Council (PEBEC) to address bottlenecks and compliance issues associated with the ease of doing business in Nigeria. PEBEC’s initiatives include simplifying/fast-tracking the process of incorporation of companies in Nigeria and tax compliance as well as the deployment of the Integrated Tax Administration System (ITAS). Very recently, the Startup Act 2022 and the Business Facilitation Act, 2023 were enacted with the objective of promoting the ease of doing business in Nigeria through transparency, efficiency, productivity and elimination of unnecessary bureaucracy.

Just like in other jurisdictions, there are certain legally established compliance requirements for embarking on certain business projects in Nigeria. Cross-border investment comes with certain challenges and uncertainties for investors, the government of Nigeria has taken steps to allay this fear by introducing investment-friendly policies that accord foreign investors certain privileges and incentives. In this guide we provide insights and relevant information on doing business in Nigeria that will assist investors in making informed investment decisions, encompassing the Nigerian business landscape, business/investment structures, regulatory framework, foreign exchange control considerations, applicable taxes, available business/tax incentives and an appraisal of the future fiscal outlook for the Nigerian economy.

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