Operating a successful business in Nigeria increasingly requires more than a viable product or strong customer demand. Companies must navigate an evolving regulatory environment while managing high operating costs, infrastructure constraints and tight financing conditions.
Every company must register with the Corporate Affairs Commission (CAC), which has largely transitioned to a fully digital service platform. In 2025, the commission launched an AI-powered registration portal designed to speed up business registration and compliance processes, stating that straightforward registrations can be completed in as little as 30 minutes.
Under the Companies and Allied Matters Act (CAMA), private companies without foreign participation are required to have a minimum issued share capital of ₦100,000. Foreign-owned companies, however, must meet a minimum paid-up share capital of ₦100 million and obtain a Business Permit from the Federal Ministry of Interior before commencing operations. The ministry has also digitised permit applications through its Citizenship and Business Management Portal.
Nigeria’s tax reform package, enacted in 2025 and effective from 2026, introduced a more streamlined tax framework and renamed the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS). Small companies with an annual turnover of ₦50 million or less remain exempt from Companies Income Tax under the current tax regime.
All registered businesses are required to obtain a Tax Identification Number (TIN), comply with applicable tax obligations and file statutory returns with the relevant tax authorities.
Power supply remains one of the biggest challenges facing businesses, prompting many companies to rely on generators or invest in alternative energy sources such as solar power. At the same time, the continued emigration of skilled professionals, popularly known as the “Japa” phenomenon, has made it more difficult for employers to recruit and retain experienced talent. Poor road infrastructure and supply chain bottlenecks also continue to increase logistics costs.
Access to finance remains challenging. Commercial lending rates remain elevated, while government-backed intervention programmes continue to provide concessional financing to eligible businesses at below-market rates.
The federal government continues to implement initiatives aimed at supporting micro, small and medium-sized enterprises (MSMEs). Among them is the CAC-SMEDAN partnership launched in 2025 to facilitate free business registration for 250,000 MSMEs under the Renewed Hope Agenda.
Despite ongoing challenges, Nigeria remains one of Africa’s largest consumer markets, offering significant long-term opportunities for investors and entrepreneurs. Businesses that prioritise regulatory compliance, sound financial management, reliable energy solutions and effective workforce planning are likely to be better positioned to succeed in the country’s evolving business environment.
