DOING BUSINESS N NIGERIA
WELCOME TO NIGERIA
We specially welcome you to Nigeria, the giant of Africa, one of the potential power economies of the world; and West Africa’s choice destination for growth and investment.
With increasing globalization, the world has become a small village where cross border investments and sustainability are the focal points of economies. Nigeria is a country that cannot be ignored by any investor looking for long term growth.
This publication has been written to give insights to doing business in Nigeria. It covers key aspects regarding the
business climate, applicable business vehicles, taxes, foreign exchange controls and immigration requirements.
This guide will give investors a high level overview of Nigeria which should hopefully lead to a more detailed and
tailor-made analysis required in making informed decisions about doing business and investing in Nigeria.
Certainly, like every country, there are challenges many of which are being addressed as the Nigerian government
seeks to simplify regulatory frameworks, market-friendly policies, improve the overall ease of doing business.
This guide only provides a general overview of the existing opportunities. Credible advice is at the heart of
decision making. It is vital to make informed decisions that are practicable and tested in the local markets based
on sound knowledge of the economic environment, political climate and legislative processes.
If you need more information, my team and I will be very delighted to assist you on an individual basis and walk
with you on this journey to explore the opportunities for investments.
On behalf of Mazars in Nigeria, I welcome you all as you invest in the Oil rich country, Nigeria.
DOING BUSINESS IN NIGERIA
Nigeria: An Investment Destination of Choice
The Nigerian economy is endowed with great economic potentials and is expected to be one of the world’s top economies by 2050. Nigeria is a member of the MINT countries ((Mexico, Indonesia, Nigeria, Turkey)
and one of the next four largest emerging and developing economies after the BRIC countries (Brasil, Russia, India, China).
Policy reforms in some of the MINT countries, and other countries that have been ranked consistently in the top 20 per centile of the index, have focused on key areas such as the use of technology-based platforms in reducing lengthy administrative procedures and on providing more financial incentives. These have in turn contributed to improving the ease of doing business in these countries especially in Nigeria. Mexico created an online One Stop Shop, which permits business name availability searches to be conducted in minutes. The system has made it possible for all company registration documents to be submitted via a single portal, complete with an online notary service. With this, registration processes can be completed in 2 to 3 days. Using the same approach, the 13-step procedure involved in registering a business in Indonesia, which previously took up to 47 days, was cut down to 7 procedures to span 10 days. In addition to leveraging on available technology, Indonesia also empowered the Ministry of Law and Rights to issue incorporation certificates.
expedited registration services and specific registration needs as an added incentive. With a fully functional online system, the Corporate Affairs Commission can focus on expanding its service outreach in each State through the use of accredited third party agents.
All these are clear attestation to the potentials inherent in the economy.
The economy possesses one of the largest internal markets in the world. With a growing population of over 193 million, the economy presents huge opportunity for market seeking investments. According to Global Retail Development Index, Nigeria’s retail sector made a national sale of over US$125 billion in 2016. This was made possible by a middle-class population that has grown by over 600% in the last few years, and now represents over 38% of the population of the country.
The Economic Recovery and Growth Plan (ERGP); the national medium term economic plan for 2017 – 2020 has a vision for sustained inclusive growth that is anchored on:
- a stable macroeconomic environment
- agriculture and food security
- energy sufficiency (power and petroleum products)
- improved transportation infrastructure
- industrialization focusing on small and medium scale enterprises
Overall, the Plan projects to grow the economy at an annual average of 4.62%. This is to be achieved by focusing on growth sectors - sectors that have consistently contributed significantly to the GDP and attracted investors interests, both domestic and foreign.
The commitment to improve the enabling environment has seen an improved ranking of the economy by the World Bank in the 2018 Doing Business Report. The economy achieved a 24 places upward movement to being ranked 145 out of 190 countries in the process recording positive change in seven out of the ten indicators. Efforts are on to ensure this trend is sustained to ensure the country makes top 100 ease of doing business ranking by 2020.
For more detailed information, kindly download the PDF below.