Nigeria is one of Africa’s most dynamic markets, offering strong opportunities for Swedish companies in technology, renewable energy, infrastructure, healthcare, and manufacturing. The process of setting up a business has become significantly more efficient through the Nigerian Investment Promotion Commission (NIPC) and its One Stop Investment Centre (OSIC). Bringing 25 government agencies into one coordinated platform, OSIC streamlines approvals, permits, and licences that previously required multiple visits and fragmented processes.

Seven steps to establish a business

Step 1: Company incorporation

All companies must register with the Corporate Affairs Commission (CAC). Incorporation can be completed online, and foreign investors may own up to 100 per cent equity in sectors except in sectors such as arms, narcotics, military equipment and such other items as the Federal Executive Council (FEC) may from time to time determine. Once approved, the company receives a Certificate of Incorporation.

Step 2: Payment of stamp duties

Following incorporation, stamp duties must be paid on share capital through the Federal Inland Revenue Service. This statutory requirement under the Stamp Duties Act must be completed before tax registration. The amount is determined by the company’s share capital.

Step 3: Tax registration

Companies must then register with the Federal Inland Revenue Service to obtain a Tax Identification Number and a Tax Clearance Certificate. These are mandatory for business operations and required for subsequent regulatory approvals.

Step 4: NIPC registration

Foreign-owned businesses must register with the Nigerian Investment Promotion Commission before commencing operations. This confirms compliance with investment laws and enables access to incentives such as tax holidays and duty waivers.

Step 5: Business permit and expatriate quota

Companies with foreign ownership must obtain a Business Permit from the Ministry of Interior. If foreign nationals will be employed, an Expatriate Quota must also be secured, specifying approved roles and ensuring compliance with local content requirements.

Step 6: State-level registration

After completing federal processes, companies must register at state level. Requirements typically include the registration of business premises and payment of state-specific taxes. Most states operate investment promotion agencies or commerce ministries to support investors.

Step 7: Industry licensing

Sectors such as telecommunications, food and drug production, oil and gas, and manufacturing require additional approvals from specific regulators. These licences ensure compliance with industry standards and are critical for companies producing, distributing, or importing regulated goods.

“
If you have growth ambitions in Africa, in emerging markets, you should contemplate Nigeria. The market is too big and too dynamic to overlook. — Lars Johannisson, CEO, Rack Centre
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Next steps

Setting up in Nigeria involves several regulatory steps, but the opportunities are substantial. Business Sweden’s team in Nigeria provides guidance on whether setting up is the right decision and advice on how to navigate the process, including incorporation, permits, licensing, and compliance considerations.

Ready to start your business in Nigeria? Contact Business Sweden for tailored assistance.