Nigeria Investment Hub

Business Opportunities in Nigeria

invest in fgn bond nigeriaWhat is a Bond?

A bond is a contract between a lender and a borrower, whereby the borrower agrees to pay the lender interest and repay principal at stipulated periods. It’s similar to an IOU, issued by the Government or a Corporate institution as a way of raising funds for particular projects.


When you purchase a bond, you are lending money to a government, local government council, state government, federal agency or a corporation, known as the issuer. The government uses it to fund budget deficit, for instance, or to build roads, electric power stations, finance factories, etc. When you purchase a bond, in return the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the face value of the bond (the principal) when it ‘matures’




What is an FGN Bond?

FGN Bonds are Debt instruments or contracts issued by the Federal Government of Nigeria for an agreed period of time. The investor lends an amount of money to the government and earns interest on the investment until the maturity of the bond when the initial payments will be returned.



What are the Benefits of an FGN Bond to the investors?

  • It serves as risk-free investment
  • It is income is tax exempt
  • It provides relatively high and stable returns
  • The principal element ( collected at maturity) can be used as collateral for securing credit facilities from banks
  • Bondholders that want cash can trade the bonds on the floor of Nigeria Stock Exchange(NSE) for immediate cash before maturity
  • It qualifies as liquid assets for banks from two years to maturity



Who Can Invest in FGN Bonds?

Anyone can invest in a FGN bond. They can be individuals or corporate bodies.



When does the Government Issue Bonds?

The Government via the Debt Management Office DMO will first issue a primary auction. Freshly issued bonds usually takes place on the third Wednesday of every month.



Where Can I Buy an FGN?

You can buy from the following PMI’s. Just go to any of their branches and request for a form and guiddiance

  • Access Bank Plc.
  • Associated Discount House Ltd.
  • CitiBank Nigeria Ltd.
  • Consolidated Discounts Ltd.
  • Diamond Bank Plc.
  • Ecobank Nigeria Plc.
  • Fidelity Bank Plc.
  • First Bank of Nigeria Plc.
  • First City Monument Bank Plc.
  • FSDH Merchant Bank Ltd.
  • Guaranty Trust Bank Plc.
  • Kakawa Discount House Ltd
  • Stanbic IBTC Bank Plc.
  • Standard Chartered Bank Nigeria Ltd.
  • Union Bank of Nigeria Plc.
  • United Bank for Africa Plc.
  • Zenith Bank Plc.
What are the Bond Maturity Terms?

FGN Bonds have maturity years ranging from 5 years to 10 years to 20 years. The maturity of a bond is the number of years remaining for an already issued bond to mature (due for payment of principal)



How do I invest in FGN Bonds?

You can invest in bond through a Primary Dealer/market maker (PD/MMs). PD/MMs can be banks, investment houses, brokers etc. . To invest you approach your chosen PD/MMs and fill a form. In the form you fill your Personal Information, bank details for payment of your interest, CSCS nos, the amount you wish to invest, your bid interest rate and then sign. See Step by step process below:

How to invest in FGN Bond

1. Application forms can be obtained from any of the authorized dealers(PDMMs), or download from the DMO’s website

2. Complete the application forms and submit through any of the PDMMs

3. Common- price auction system is normally employed as opposed to multiple price auctions

4. Payments for the allotment are payable in full on application

5. Minimum of N10,000.00 and multiple of N1,000 thereafter

6. Investors can also access the FGN bonds after the auction through the secondary market

7. FGN bonds purchase is confirmed by registration in the depository (CSCS) or by issue of certificates

8. Interest is paid semi-annually until the maturity date when the principal amount is repaid

9. Payment of interest is through issue of interest warrant(cheque) or direct transfer to current or savings bank accounts

10. Bondholders who do not want to hold the bonds until maturity date can sell them at any time on the floors of Nigerian Stock Exchange or Over the Counter (OTC), through, any of the PDMMs



Why do I have to bid interest?

FGN Bonds are sold via an auction system where investors quote interest rates for bonds they wish to buy. As such, bond applications with interest rates that are below the minimum average interest rates otherwise called the marginal rate quoted are accepted and those higher may be rejected. For example, if the average minimum interest rate is 12% then bids below 12% will be accepted. Therefore different investors can have different interest rates provided it falls below the minimum average bid price. Someone can have 10% another 11%, 9%, 10.5% etc.



What is the Marginal Rate for Bonds and How does it work?

Bonds like any other asset is affected by the interest rate pressures. As such despite the coupon rates the FG indicates it will pay bond purchasers and sellers determine the price of a bond based its expected yield. For example, FG Offer for sale FGN Bond with a coupon rate of 10%. As such N100 unit (bond price) of the bond will earn N10 in coupon interest. However, when you are about to buy the marginal rate determines the price you pay. So, if the marginal rate is 13%, you pay N76.9 for a bond with a Face Value of N100 per unit. This is derived at by dividing the fixed coupon N10 by the expected yield 13% (10/0.13) to arrive at N76.9. As such the N10 coupon that will produce a yield of 13% will be based on a price of N76.9. So basically when the yield is higher than the coupon the bond price is sold at a discount and when the premium is higher than the yield the bond price is sold at a premium.



What if I lose my bid is there still a way I can buy?

You can buy or sell bonds at the secondary market. So for those who do not wish to hold to maturity they can just go to the Over The Counter (OTC) market on the floor of the Nigerian Stock Exchange and buy. The secondary market is open from 10am to 2pm Monday to Friday. The minimum investments are 50 million and 100 million per transaction.



How Quickly Can I convert Bonds to Cash?

If you do not wish to hold to maturity, you can convert bonds to cash to selling on the secondary market through your PD/MMS who are mandated to give a two way bid/offer price. Because bonds are typically stated in of 50million and 100million amounts below are generally illiquid in the secondary market and are sold on a best effort basis.



When is the interest paid?

The coupon Interest on FGN Bonds are paid semi annually.



Where will my Interest Payment be paid to?

Your interest payment will be credited to the account that you indicated when you filled the form.



Can my interest payments be rolled over on top of the principal?

No. The coupon is not rolled over automatically. It is credited to your accounts as cash. However, you can then use the interest to purchase the next round of bond sales should you want to enjoy the benefits of compounding interest.



Are the Interests Tax Free?

Yes it is Tax free as you do not pay tax on the interest



What Security do I have?

FGN Bonds are secured by the full faith and credit of the Federal Government of Nigeria. Their default capability is close to zero



What affects the Bond Price?

The Bond price is affected by the yield. The higher the yield the lower the price. For example a Bond Price originally cost N100 at 10% coupon rate (N10 interest). The price drops to N90 due to forces of demand and supply. The yield is therefore the N10 divided by the N90 0r 11.1% price in the hand of a new purchaser.



What other Factors affect Bond Price?

a. The credit status of the issuer
b. The forces of demand & supply of such securities
c. The inflation and interest rate movements
d. Activities and performances of the equities market.


What is the difference between a bond and a stock?

The key difference between stocks and bond is that stocks make no promise about dividends or returns, but when the Government Issue a bond, it guarantees to pay back your principal (the face value) plus interest. If you buy the bond and hold it to maturity, you know exactly how much you are going to get back. That is why bonds are also known as ‘fixed-income’ investment – you are sure of a steady payback or yearly income.

The buyer of stocks or shares in a company has purchased part of the equity and becomes part –owner. He is only entitled to dividend declared by the company when it makes profit.



What are the types of Bonds?

  • Sovereign Bond(such as FGN Bond)

When you buy FGN bonds you are lending funds to the federal government for a specified period of time. The FGN bond is considered as the safest of all the investments because it is backed by the ‘full faith and credit’ of the government. They have no default risk, meaning that it is virtually certain your interest and principal will be paid as and when due. The income you earn is exempted from state and local taxes.

  • State and Local Government Council Bonds

When you purchase state and local government council bonds you are lending to the issuers who promise to pay you a specified amount of interest (usually semi – annually) and return the principal to you on a specific maturity date. State and local government bonds are debt obligation issued by the state government, local government councils and other governmental entities to raise money to build schools, roads, hospitals as well as other projects for public good.

  • Government Sponsored Enterprise Bond

These are bonds that help support project relevant to public policies, such as helping certain groups, such as farmers, homeowners, students, etc to raise money for financing specific projects. These bonds do not carry the full-faith and-credit of government. The investors are likely to hold them in high regard because they have been issued by a government agency.

  • Corporate Bond

Corporate bond are debt obligation issued by private or public corporations. The corporations use the funds for building facilities, purchase of equipment to expand the business, etc. When you purchase corporate bond, the corporation promises to return your money, or principal at maturity date, but you are being paid interest semi – annually. The interests you receive are taxable. Corporate bonds do not give you an ownership interest in the issuing corporation.

Are there Risk and Reward in investing in bond?

Any time you lend money you run the risk that it will not be paid back – credit risk. Another source of risk for certain bonds (bond with call option) is that your loan may be paid back early, or ‘called’ this is known as prepayment risk. When you buy a bond, the prospectus will indicate whether a bond is callable and give you a ‘yield-to-call’ figure. The greatest danger for a buy –and-hold bond to an investor is rising inflation rate – inflation risk. A rise in inflation makes prices fall and yields-or interest rates-rise. However, inflation risk, credit risk and prepayment risk are all figured into the pricing of bonds. The more the risk the higher the yield. Investors demand higher yields for longer maturities, as the longer you tie your money up in a bond the more at-risk.



Why should I invest in FGN bond?

  • Retirement
  • Starting or expanding a business
  • Settlement after apprenticeship
  • Pay children school fees in future(e.g for University education)
  • Building a house
  • Future projects by town unions, associations, student union
  • To fund future social events such as Marriages and weddings, etc
  • Settlement of pension insurance obligation( for Corporate Fund Managers), etc



What are the benefits of FGN bonds to the Economy?

  • It fosters economic development by promoting the use of lon-term funds for lon-term investment in the economy
  • It serves as an efficient way of mobilizing domestic financial resources for productive investment in a non-inflationary manner
  • It allows self reliance of the country by reducing over reliance on short-term borrowing form CBN & commercial banks
  • It provides a basic infrastructure for the development of the financial system and the overall economy
  • It serves as a diversified portfolio investment outlet to corporate and individual investors



What are the benefits of FGN bonds to the Government?

  • It helps government funds its deficits in a non-inflationary manner
  • It provides benchmark yield-curve for pricing other securities/bonds
  • It engenders rational management of Government’s fiscal and monetary operations
  • It provides the basic infrastructure for the development of the financial system and the overall economy
  • It strengthens the implementation of monetary policy by the Central Bank of Nigeria
  • It introduces transparency, discipline and stability in the financial system



What is dematerialization of bond certificates?

It is a term which describes a shift from issuance of physical certificate to an electronic form. It involves the use of a depository, in this case, the Central Securities Clearing Systems Ltd(CSCS) which provides the platform for the securities.

Although DMO still issues physical certificates on request, modern securities trading system de-emphasizes the use of physical certificates. Advancement in electronic communication and custodian services allow book-entry records and trade verification which has made trading more reliable and easier to manage than the use of physical certificates.



How can I be aware of the forth coming issues?

  • National Dailies
  • DMO Website –  FGN bond Issuance Calendar


Which Government Agency Manages the FGN Bond?

The Debt Management Office (DMO) is the Government agency that manages the FGN Bond. DMO  was established on 4th October, 2000 to centrally coordinate the management of Nigeria’s debt, which was hitherto being done by a myriad of establishments in an uncoordinated fashion. This diffused debt management strategy led to inefficiencies. For instance, in the Federal Ministry of Finance(FMF) alone, four different departments have functions for the management of external debt in the following format click here for more info about DMO

Are you an in Nigerian living in Nigeria or a potential investor thinking of  Investing in Nigeria; but don’t know where to start frominvesting in nigeria or which business to invest your money into? We have compiled a growing list of lucrative business opportunities in Nigeria you can invest your money and be sure of making millions back in no time (if done properly).

  • Poultry Farming: This business is making average Nigerians rich. It is so lucrative that even outsiders are coming in to invest in poultry farming the business in Nigeria. And why not, In a country of more than 150 million people, what would you expect? If you start with 1,000 birds and manage your poultry farm properly, when the turnover on investment begins to come, you will be making up to N30 million annually.
  • Catfish Farming: The first of the fastest growing business opportunities in Nigeria is catfish farming. The primary reason I listed catfish farming as one of the fastest business opportunities in Nigeria is because it’s an emerging industry that hasn’t reached its peak or full potential. The major players in this business are usually regional players. What this means in essence is that each major player in the catfish farming industry is focused only on a particular business terrain within the geographical location of the farm.
    So all you need to do is look for a region with a growing demand that haven’t been covered by a major player and situate your business there.

    When accessing any of these business opportunities listed above, you must note three important facts. One, food is one of the basic necessities of man, thus making catfish, snail and poultry farming a huge potential. Two is that the population in Nigeria is estimated to be over 150 million and growing so that entails a growing demand for food. Three is that even if the local market with 150 million Nigerians gets saturated (which I strongly doubt as this niche is still in its adolescent phase), there’s still a growing demand for catfish all over the world. So do your own in-depth analysis and put your money to work.
    However, you are free to use our own analysis and research, you can read more on Setting up a Small Scale Broilers poultry farm and How to setup a fish pond on
  • Cassava Production: People are beginning to turn their attention to this aspect of farming in Nigeria that have been neglected for years. Cassava derived foods are some of the most consumed in Nigeria. If you can invest in cultivating 50 – 100 Acre in a fertile area like Ondo State, your harvest will be great.
  • Import Used Cloth: Tokunbo market in Nigeria is very big and many people prefer to buy used items that are high quality than buy fakes.The cost of buying and importing used cloths is low compared to the prices in the market here in Nigeria, guarantying good turn over on investment.
  • Sewing of specialized uniforms: Another opportunity is to set up a small scale textile firm that will specialize in sewing uniforms. The demand for uniforms is on the increase in Nigeria; from the crèche to the labor market, uniforms are highly in demand but it’s advisable you do your own detailed research before venturing into the business.
  • Inland water way transport: Inland water way transport is one of the fastest growing business opportunities in Nigeria. In fact, we believe the niche is still untapped because we are yet to see a modern commercial boat or ferry service system in Nigeria. Though there are a few operators in this industry; we are yet to see the modern facilities being used by the developed countries.

    Another reason inland water way transport business proves viable is because population in states such as Lagos, Ogun state and Rivers is rapidly on the rise thereby resulting in the congestion of roads. Since the roads are becoming heavily congested; the next means of transportation the inhabitants of these heavily populated states will resort to is water transport. With proper planning, a good management team and adequate funding, you can break into this untapped industry and carve a niche for your business.

  • Haulage and logistics: Haulage and logistics is another fastest growing business opportunity in Nigeria. Though it’s considered a risky business; you can breakthrough if you have a strategic business management team on ground. Good management is the key to surviving in the business of haulage and logistics.
  • Outsourced bus service: This is similar to haulage and logistics but the cargo in this case is humans. we are not talking about the regular road transport bus service; in fact, we don’t think we  have seen the idea for this business been utilized yet.

    Now in this case, you are providing transportation services to firms and corporate entities. Some corporate organizations can’t afford an in-house transport system for its executives and staff, so this is where you come in. You provide the cars or buses, provide the drivers and you are paid on a monthly bases or contract bases for the use of your transport services

    Another area of target is schools. Most schools would like to provide transport facilities for their students but they can’t afford it and this is where you come in. You provide a bus service system and send out a proposal to schools to use your bus services. Just imagine 20 or more young schools jointly using your student bus service system and you will catch the vision of this idea.

  • Information and Communication Technology: When it comes to ICT, we will be right to say Nigeria is lagging behind when compared to the western world. It may sound like bad news to you but to entrepreneurs and investors, it is good news. ICT is still an emerging trend that hasn’t reached its peak so a lot of opportunities exist for both local and foreign investors. We won’t go into the capital intensive business opportunities that exist in the ICT sector; rather, we will stick with small and medium scale business opportunities, such as:

       a. Cyber Café
    The demand to stay connected to the rest of the world is rapidly on the increase and the cost of internet connection is still on the high side when compared to what is obtainable in the western world, thereby making cyber café an alternative for internet users; and an investment opportunity for entrepreneurs. This business can be started either on a small, medium or large scale but I will prefer a large scale because size can be a competitive edge for you in this business as customers won’t like to be kept waiting.
    Customers of this industry want speed and efficient service and most importantly; they want to be sure to find a vacant computer system anytime they want to surf the web without having to wait in line. If you can get a good location; provide speedy internet access and provide complementary services; you are in for a breakthrough.
       b. E-Services
    Just as the world is going e-crazy; so also is Nigeria catching up with the trend. E-services provision is still a virgin business opportunity that hasn’t fully been tapped. Under the umbrella of providing e-services; you can find the following fast growing business opportunities: E-payment, Bulk Sms services, Website Design and and hosting, database management services, e-portal management, etc.

  • Sale of Furniture: Buying and selling of Locally make furniture is a goldmine. You don’t need to be a carpenter to do this, just arrange for regular supply from reliable Carpenters while you display and sale in your showroom. It is a very big business in Nigeria as only few can afford the imported designers.
  • Snail Rearing: Snail farming is one of the choice Animal farming for many reasons. It is a low capital investment with high yield and the market is big. There are few people currently doing this – and most of them are doing it in a very low scale. If someone invest heavily in Snail farming, he is sure to make good money in Millions within a year.
  • Rice Farming: Rice remains the most consumed food staple in Nigeria and Billions of dollars goes into importation of this product yearly from China and Thailand because the local farmer are unable to meet up the demand due to poor funding and limited knowledge. Anyone who have a million dollar to invest should get in touch and partner with me with 100% return. $1,000,000 = $2,000,000 guaranteed
  • Making of Fruit Juice: Nigerians drink fruit juice more than any other people. That’s why companies like La Carcella and Chivita who came into the country as nobody are today making billions of naira annually. This business in capital intensive but if you can afford it, it’s well worth it.
  • Pure Water Production: You know how popular this is in Nigeria and how many that are dispensed daily. Though this business is capital intensive but well worth investing into, especially if you can manage it properly with professionalism.
  • Oil and Gas Business: We are blessed and cursed with huge deposit of oil in our land which presents some of the finest business opportunity for Nigerians and Foreigners over the years. Owning a Petrol Filling Station, Supplying of Diesel, and Distribution of Kerosene are some the areas you can invest easily and make good money for yourself.
  • Haulage Services: The cost of taking a truck from one place to the other in Nigeria is between N20,000 to N200,000 per trip. Due to poor rail transport system, most of the Nigerian goods are transported through the road, making haulage business in Nigeria a viable one.
  • Hotel Business:This is probably the coolest money making opportunity in Nigeria. Invest in small scale hotel of just 10 suites and watch as the money flows in. This has nothing to do with tourism boom of any kind; there is just something in Nigerians system that make this business very lucrative – Nigerians are jolly people!
  • Fast Food Eatery: Eatery business is another goldmine though poor management can kill it death! If you wish to go into this business, be sure to get everything right and don’t forget it’s a bit capital intensive and requires good management skills. But if you get everything right, free money is yours.
  • Importation of Tokunbo Spare Parts: If you are in USA, this business is good for you. Don’t just keep importing exotic cars, gather tokunbo spare parts in containers and ship down here. There is huge market for it in Nigeria.
  • Investing in Property: Property appreciate everyday in Nigeria. Right now, Nigeria is one the countries in the world where landed property is most expensive. If you buy land now anywhere in Lagos, you are sure to make 100% profit within two years. You can buy and quickly resell and make profit. Or you buy keep and sell later.
  • Dry Cleaning: Professional dry cleaners at affordable prices are scarce in Nigeria. What we have are professional Dry Cleaners whose service fees are extremely high or mediocre dry cleaners who can never keep with time. Give them cloths today and meet it unwashed after one week. This business is a money maker if you balance it up.
  • Professional Car Wash: This business is good if you can set it up in a strategic location in a place like Lagos where there are good number of cars. You.
  • Sales of Building Materials: The rate at which new houses are springing up in Nigeria, you get to wonder why many people still complain of housing problem. Investing in building material is a good business and I can count some guys who are making millions almost daily in this business.
  • Transport Business: What we have in this sector are transport companies that are badly managed by local chiefs and touts. Invest in this business with good management and you will be wondering what hits you with bags of money.
  • Nursery and Primary School: School business has no rival among it’s mate. My little kids school fees take away close to a million naira per term just to learn ABC!
  • Investing in Internet Companies: This is a new crop of powerful investment opportunity that is creating Billionaires around the world including Nigeria. It’s simple! You don’t have to be a Tech person, all you need is to look for creative online startups with good ideas and invest in. Within 1 to 2 years you will be counting your profits in dollars.

Fladio International Nigeria Limited, parent company of the globally reknowned just launched a new website is a member of Fladio International Nigeria Limited. We assist existing and new business ventures to flourish in Nigeria and across the Globe. We gather relevant and publish relevant business information ranging from investment opportunities to marketing your products/services, from Managing your Business to Partnering with, from discussing on our business forum to hiring as your Business Consultant among others.

We are a real business company manned by professionals with extensive track record in the public and private sector. Our Team Comprises of Bankers, Civil Servants, Food Scientist, Computer Scientist, Marketers, Successful entrepreneurs among others.



All business enterprises must be registered with the Corporate Affairs Commission. Business activities may be undertaken in Nigeria as a:

  1. Private Limited Liability Company;
  2. Public Limited Liability Company (Plc);
  3. Unlimited Liability Company;
  4. Company Limited by Guarantee;
  5. Foreign Company (branch or subsidiary of foreign company);
  6. Partnership/Firm;
  7. Sole Proprietorship;
  8. Incorporated trustees (religious, charitable, philanthropic or cultural);
  9. Representative office in special cases.


The Companies and Allied Matters Act, 1990 (the Companies Act) is the principal law regulating the incorporation of businesses. The administration of the Companies Act is undertaken by the CORPORATE AFFAIRS COMMISSION (CAC), which undertakes the administration of the Companies Act.

Minimum Share Capital
The minimum authorised share capital is N10, 000 (Ten Thousand Naira) in the case of private companies or N500,000 (Five Hundred Thousand Naira) in the case of public companies with a minimum subscription of 25% of the authorised share capital respectively.


A non-Nigerian may invest and participate in the operation of any enterprise in Nigeria. However, a foreign company wishing to business-incorporation-in-nigeriaset up business operations in Nigeria should take all steps necessary to obtain local incorporation of the Nigerian branch or subsidiary as a separate entity in Nigeria for that purpose. Until so incorporated, the foreign company may not carry on business in Nigeria or exercise any of the powers of a registered company.
The foreign investor may incorporate a Nigerian branch or subsidiary by giving a power of attorney to a qualified solicitor in Nigeria for this purpose. The incorporation documents in this instance would disclose that the solicitor is merely acting as an “agent” of a “principal” whose name(s) should also appear in the document. The power of attorney should be designed to lapse and the appointed solicitor ceases to function upon the conclusion of all registration formalities.

The locally incorporated branch or subsidiary company must then register with the Nigerian Investment Promotion Commission (NIPC) before commencing formal operations. The new company may also apply to NIPC for other investment approvals (e.g. expatriate quota) and other incentives.

Exemption to the General Rule
Where exemption from local incorporation is desired, a foreign company may apply in accordance with Section 56 of the Companies Act, to the National Council of Ministers for exemption from incorporating a local subsidiary if such foreign company belongs to one of the following categories:

  1. “foreign companies invited to Nigeria by or with the approval of the Federal Government of Nigeria to execute any specified individual project;
  2. foreign companies which are in Nigeria for the execution of a specific individual loan project on behalf of a donor country or international organisation;
  3. foreign government-owned companies engaged solely in export promotion activities; and
  4. engineering consultants and technical experts engaged on any individual specialist project under contract with any of the governments in the Federation or any of their agencies or with any other body or person, where such contract has been approved by the Federal Government.”

The application for exemption from disclosing certain details about the applicant is to be made to the Secretary to the Government of the Federation (SGF). If successful, the request of the applicant is granted upon such terms and conditions, as the National Council of Ministers may think fit.

Representative Offices
Foreign companies may set up representative offices in Nigeria. A representative office however, cannot engage in business or conclude contracts or open or negotiate any letters of credit. It can only serve as a promotional and liaison office, and its local operational expenses have to be floated by the foreign company. A representative office has to be registered with the CAC.


Business Day –
Vanguard –
ThisDay –
The Nation –
The SUN –
The Punch –
Daily Trust –
Daily Independent –
Daily Champion –
Daily Tribune – http://http//


  • Federal Radio Corporation –
  • National Broadcasting Commission –
  • National Film & Video Censors Board –
  • News Agency Of Nigeria –
  • Nigerian Film Corporation –
  • Nigerian Press Council –
  • Nigeria Television Authority –
  • Voice Of Nigeria –
  • Advertising Practitioners Council Of Nigeria –
  • Federal Ministry of Information –



Bureau Of Public Enterprises –
Central Bank Of Nigeria –
Corporate Affairs Commission (CAC) –
Department Of Petroleum Resources –
Federal Capital Territory Administration –
Federal Civil Service Commission –

BOA is Nigeria’s premier agricultural and rural development finance Bank-of-Agriculture-BOAinstitution, 100% wholly owned by the federal government of Nigeria. The ownership structure is – Central Bank of Nigeria (CBN) 40% and Federal Ministry of Finance Incorporated 60%. Bank of Agriculture Limited is supervised by Federal Ministry of Agriculture.

The Bank was incorporated as Nigerian Agricultural Bank (NAB) in 1973 and in 1978, was renamed Nigerian Agricultural and Cooperative Bank (NACB).

Subsequently in 2000, it was merged with the People’s Bank of Nigeria (PBN) and took over the risk assets of Family Economic Advancement Programme (FEAP) to become Nigerian Agricultural Cooperative and Rural Development Bank Limited (NACRDB, a name that has always be considered too long and unwieldy.

A plan to reposition the Bank into an effective and sustainable national agricultural and rural development finance institution in 2010 led to a further name change to Bank of Agriculture Limited (BOA).
Profile and values
We provide affordable credit facilities to segments of the Nigerian society who have little access to the services of conventional banks. We accept savings deposit from customers and encourage banking habits at the grass-roots.

At Bank of Agriculture we create opportunities for self-employment in the rural areas, thereby reducing rural-urban migration. We augment government efforts in the diversification of the productive base of the national economy.
Other areas of our mandate include the promotion of capacity building through the provision of relevant training and advisory services, encouraging the formation of cooperative societies at all levels, and fostering an accelerated growth
and development of the agricultural and rural economy.
Keypoints & strategy

Bank of Agriculture positioning strategy is anchored on Three Direction Points (TDPs); a tripod of Modernization,
Institutional capacity enhancement, and Refocusing on the Bank’s key mandates.

We will continue our corporate rebranding, enhancement of information technology and upgrade of working environment and
tools as elements of the modernization program.

A continued Refocusing of the Bank has involved a reorganizing of the bank and improving its processes to ensure effective
delivery of agricultural and rural finance services on a sustainable basis to support the national economic development
agenda towards achieving Nigeria’s vision 20:20:20.

We will emphasize the improvement of access to finance, and effectiveness of agricultural and rural development in view of
the importance of this sector to national development.
Head Office, Yakubu Gowon Way, Kaduna, Kaduna State, Nigeria.

07040202222; 07042262222



Is there a limit to foreign participation in an enterprise in Nigeria?

Foreigners may own up to 100% of any Nigerian business (S17) except in the Maritime sector (Cabotage).

What is the procedure for repatriation of capital and profit?
Under the provisions of the Foreign Exchange (Monitoring & Miscellaneous Provision Act No. 17 of 1995) , foreign investors are free to repatriate their profits and dividends net of taxes through an authorized dealer in freely convertible currency.

What are the types of Companies Registered in Nigeria?

  • Private Companies Limited by Shares
  • Public Companies Limited by Shares
  • Companies Limited by Guarantee
  • Unlimited Companies
  • Exemptions are granted to foreign Companies undertaking special project. Companies seeking exemption are to forward their application to the Secretary to the Federal Government of Nigeria.

What are the requirements for the Incorporation of a Company in Nigeria?

  •  Search for availability of name
  • Payment of appropriate stamp duty fee at the Federal Board of Internal Revenue
  • Submission of Memorandum and Articles of Association together with statutory forms for verification and assessment
  • Payment of statutory fees at Corporate Affairs Commission

For further details visit the Corporate Affairs Commission (CAC). Website at or contact them at:

The Customer Service Unit,
Corporate Affairs Commission,
Plot 565 Ndola Square,
Off Micheal Okpara Street,
Wuse Zone 5, Abuja, Nigeria.


What are the requirements for Business Permit?

  1. Formal application letter to Executive Secretary
  2. Minimum Share Capital Requirement – N10million
  3. Duly completed NIPC Form I
  4. Certificate of Incorporation
  5. CAC’s Forms C02 and C07
  6. Memorandum and Articles of Association
  7. Tax Clearance Certificate
  8. Certificate of Capital Importation
  9. Evidence of acquisition of Business Premises (Tenancy or Lease Agreement)
  10. Feasibility Report

NIPC Form I – N50, 000 (Fifty Thousand Naira)
Collection of Business Permit Certificate – N50, 000 (Fifty Thousand Naira)

 What are the requirements for Expatriate Quota?
In addition to the requirements listed under Business Permit, the following are also required:

  1. Evidence of Acquisition of Operational Premises and Operational Machinery Equipment in the case of Industrial Establishment
  2. Evidence of foreign Capital Importation
  3. Management and Technical Service Agreement (for service Companies)
  4. Tax Clearance
  5. Minimum Authorized Share Capital of Ten Million Naira (N10,000,000)
  6. The Company must produce its project implementation programme
  7. The Company must produce a training programme for Nigerians in addition to management success schedule


What approvals/licenses would an investor require to set up an enterprise?
Approvals/licenses are given by the following Agencies depending on the sector to be invested in:

 Oil & Gas Sector
1. Department of Petroleum Resources (DPR) – Oil & Gas
Plot 622, Eket Close
Area 8, Garki,
P.M.B. 399
Tel: 234-9-2349982, 2349988

 Food & Drug Manufacture
2. National Agency for Food and Drug Administration and Control (NAFDAC) – Food and Drug Manufacturing
Moshod Abiola Road, Area 2
P.M.B. 5023 Garki, Abuja
Tel: 234-9-2346383, 2346405, 2346402



3. Standards Organisation of Nigeria (SON) – All Manufacturing Sectors
13/14, Victoria Arobieke Street
Off Admiral Way
Northern Business District
Lekki Peninsula, Lagos
Tel: 234-9-2708231-4

4. Nigerian Communication Commission – Telecommunication
Plot 423, Aguiyi Ironsi Street
Maitama, Abuja,
Federal Capital Territory.
Tel: +234-9-4617000, Fax: +234-9-4617514

5.Federal Ministry of Agriculture – Agriculture
FCT Secretariat, Area 11
Garki, Abuja
Telephone: 234-9-2341931, 2342331, 2341458

 Environmental Impact Assessment Certification (for all Industries)
6. Ministry of Environment – Manufacturing
Federal Secretariat Complex
(7&9 Floor)
Shehu Shagari Way, Maitama
P.M.B. 468, Garki, Abuja
Tel: 234-9-523431, 5234932, 5234932

7. National Tourism Development corporation
Old Federal Secretariat, Area 1
P.M.B 167 – Garki
Tel: 234- 2764,
Fax: 2342775

 Solid Minerals
8. Ministry of Solid Minerals Development
Federal Secretariat Complex,
Shehu Shagari Way, Maitama
P.M.B 107, Garki Abuja
Tel: 234-9-5235830, 5236517

Power & Steel
9. Ministry of Power and Steel
Federal Secretariat Complex,
Shehu Shagari Way, Maitama
P.M.B. 278, Garki, Abuja
Tel: 234-5237064-6

 What is the Companies Income Tax Rate in Nigeria?

 Which areas (sectors) are closed to investment in Nigeria?
Investors are prohibited from participating in the following business activities: Businesses involved in production of military or paramilitary attire and equipment; or production of narcotic drugs and psychotropic substances (S8).

 What are the incentives available for investing in Nigeria?
There are both general sector specific and incentives. The general incentives include the following:

a. Pioneer Status:
Pioneer status takes the form of five-year tax holiday to qualifying industries anywhere in the federation.

The grant of pioneer status to an industry is aimed at enabling the industry concerned to make a reasonable level of profit within its formative years. The profit so made is expected to be plugged back to facilitate expansion and growth of the industry.

 Requirements for Pioneer Status?

Pioneer Status is conferred on a firm if it falls within the sectors that are defined by the government as priority areas. When a project is conferred with pioneer status, it becomes entitled to a tax holiday of 5 years.

  1.  Formal application letter to Executive Secretary
  2. Minimum Share Capital Requirement – N10million
  3. Duly completed NIPC Form II
  4. Certificate of Incorporation
  5. CAC’s Forms C02 and C07
  6. Memorandum and Articles of Association
  7. Tax Clearance Certificate
  8. Evidence of acquisition of machinery; (Form M)
  9. Evidence of acquisition of Business Premises (Tenancy or Lease
  10. Agreement)
  11. Feasibility Report
  12. Fees
    i.NIPC Form II – N40, 000
    ii.Processing Fees – N100, 000
    iii.Collection of Approval letter – N60, 000
    iv.Application for Extension – free
    v.Approval of Pioneer Status Extension – N50, 000

b. Capital Allowances
The amount of capital allowance to be enjoyed in any year of assessment is restricted in Nigeria to a percentage of assessable profit. The following is a schedule for the sectors:

Tax Allowance Initial % Annual %
Building Expenditure 15 Nil
Industrial Building


15 Nil
Mining 95 Nil

i. (Agric prod)

ii. Others





Furniture fittings 25 20
Motor Vehicles

i. Public Transportation

ii. Others






Housing Estate 50 25
Ranching/Plantation 30 50
R & D 95 Nil





Allowanc 10%


What are the Incentives in the Oil and Gas Sector?

In view of the enormous potentials in this sector, some fiscal incentives have been put in place by the government for investors as follows:

Gas Production Phase

  • Applicable tax rate under the Petroleum Profit Tax (PPT) Act to be at the same rate as company tax currently at 30%.
  • Capital Allowance at the rate of 20% per annum in the first four years, 19% in the fifth year and the remaining 1% in the books.
  • Investment Tax Credit of the current rate of 5%.
  • Royalty at the rate of 7% on shore and 5% offshore.


Gas Transmission and Distribution

  • Capital allowance as in production phase above.
  • Tax rate as in production phase.
  • Tax holiday under pioneering status.

LNG Projects

  • Applicable tax rate under PPT is 45%.
  • Capital allowance is 33% per year on straight-line basis in the first three years with 1% remaining in the books.
  • Investment tax credit of 10%.
  • Royalty of 7% on-shore, 5% off-shore tax deductible


Gas Exploitation (Upstream Operations)

Fiscal Arrangements are reviewed as follows:

  • All investment necessary to separate oil from gas from the reserves into suitable products is considered part of the oil field development.
  • Capital investment facilities to deliver Associated Gas in usable form at utilization or transfer points will be treated for fiscal purposes as part of the capital investment for oil development.
  • Capital allowances, operating expenses and basis for assessment will be subjected to the provisions of the PPT Act and the revised Memorandum of Understanding (MOU).


Gas Utilisation (Downstream Operations)

Incentives given to investors for encouragement of exploitation and utilization of Associated Gas for commercial purposes include:

  • Companies engaged in gas utilization are to be subjected to the provisions of the Companies Income Tax Act (CITA).
  • An initial tax free period of five years.
  • Accelerated Capital Allowance after the tax-free period in the form of 90% with 10% retention in the books for plant and machinery.
  • 15% investment capital allowance which shall not reduce the value of the asset.

In 1998, the government approved additional incentives to support the gas industry in the following areas:

  •  All fiscal incentives under the gas utilization downstream operations in 1997 are to be extended to industrial projects that use gas i.e. power plants, gas to liquids plants, fertilizer plants and gas distribution/transmission plants.
  • Gas is transferred at 0% PPT and 0% Royalty.
  • Interest on loans for gas projects is to be tax deductible provided that prior approval was obtained from the Federal Ministry of Finance before taking the loan.
  • All dividends distributed during the tax holiday shall not be taxed.


What are the incentives in the Power Sector?

The Federal Government of Nigeria has set-up several incentives to attract foreign direct investment into the power sector. The incentives include:

  • Tax Holidays of up to 5 years
  • Exemption from Duty Taxes on imported equipment
  • Capital & Investment Allowance which can be carried forward and used after tax holiday period
  • Manufacture of transformers, meters, control panels, switchgears, cables and other electrical related equipment are considered as pioneer products/industries. As a result, there is tax holiday of 5 to 7 years for investors who invest in these areas.
  • Power plants using gas are assessed under the companies income tax act at a reduced rate of 30%
  • 100% foreign ownership of Electricity plants
  • · Repatriation of profit with a 5% withholding tax
  • · Instituting a politically independent, and transparent regulatory agent for the power sector that will effectively enforce the established regulatory framework
  • · Putting in place the necessary foundations e.g. reliable transmission infrastructure that would create a level playing field for efficient private sector participation in the electricity supply
  • · Implementing a transparent and predicated tariff adjustment mechanism that will cover cost of production and provide adequate returns on investment at all times.

What are the incentives in the Agriculture sector?

The government within the past few years has introduced a number of measures designed to promote investment. Some of these measures include:

  1.  Fiscal measures on taxation
  2. Effective protection of local industries with import tariff or outright ban on importation of locally available substitutes;
  3. Export promotion of Nigerian-made products; and
  4. Foreign currency facility for international trade.

Some of the specific incentives are categorized as follows:

i. Export Incentives: Retention of export proceeds in foreign currency:

Exporters of Nigerian commodities are obliged to open a foreign currency domiciliary account (D/A) with an authorized bank of its choice in which 100% of the proceeds of such exports may be credited in foreign currency.

ii. Export Development Fund (EDF)

The Export Development Fund (EDF) is a special fund set up by the government to provide financial assistance to private sector exporting companies to off-set part of their initial expenses in respect of certain export promotion activities. These are promotional activities and the conditions for eligibility are as outlined by the Nigerian Export Promotion Council (NEPC).


iii. Export Adjustment Fund Scheme:

This scheme serves as supplementary export subsidy to compensate exporters for the high cost of local production arising mainly from infrastruactural deficiencies and also other natural and negative factors beyond the control of the exporter.


iv. Tax and Other Incentives:

  •  Export oriented industries:
    Export oriented industries that export not less than 60% of their product can enjoy 10 percent tax concession for five years.
  • Excise duty:
    In order to boost local industries, stimulate trade and reduce cost, government abolished most excise duties since 1st January 1998.
  •  Capital Assets Depreciation Allowance:
    The Law in Nigeria provides an additional annual depreciation allowance of 50% on plant and machinery to manufacturing exporters who exports at least 50% of the value of their annual turnover provided that the product has at least 40% local raw materials content or 35% value added.
  •  Pioneer Status:
    The provision of the Industrial Development (Income Tax Relief) Act with respect to Pioneer Status tax holidays applied to any manufacturing exporter who exports at least 50% of his annual turnover.
  •  Companies with small or no profits in Agro allied business are exempted from paying minimum tax of 20%


What are the Incentives in the Telecommunications Sector?

  • Good tariff structure, which ensures that investors recover their investment over a reasonable period of time.
  • Import duty on all telecoms equipment reduced from 25% to 5%.
  • Measures on speedy clearance of goods at the ports
  • Exclusivity period for licences, e.g. 5 years for the GSM licences, 3 years for long distance international gateway operators.
  • Pioneer status for five years (under industrial Development (Income Tax Relief) Act 1990) is offered to interested investors who want to set plants for the manufacture of telecoms equipment in the country


What are the Incentives in the Solid Minerals Sector?

In order to encourage investments in the sector Government has put in place the following incentives;

  •  Three to five years tax holiday for new mining companies, and a system of deferred royalty payment that is determined by the level of the investment and the strategic nature of the project. Also possible is capitalization of expenditure on exploration and surveys;
  • Companies profits tax reduction from 30% to 20%;
  • Roll-over relief from Capital Gains Tax.
  • Capital Allowance of 95% for Mining companies replacing their Plant and Equipment and 75% for companies with Mining Lease.
  • Extension of infrastructure such as roads and electricity to mining sites;
  • Provision of 100% foreign ownership of mining companies or concerns;
  • Tax Relief on Interest Income: Interest accruing from loans granted by banks in aid of export activities enjoys favourable tax treatment.
  • Capital Assets Depreciation Allowance: The law in Nigeria provides an additional annual depreciation allowance of 5% on plants and machinery to manufacturing exporters who export at least 50% of their annual turnover provided that the product has at least 40% local raw material content or 35% value added;


What are the incentives in the Free Trade Zones

Locating in any Free Trade zone in Nigeria automatically confers on the investor, certain locational advantages as well as very generous incentives. These include:

  •  Relative proximity to major markets of Africa, Europe and America.
  • Large domestic market for the 25% of production that FTZ producers can sell in the Customs Territory.
  • Favourable quotas on certain products from Nigeria export to the European Union (EU) and the United States.
  • Made in Nigeria products enjoy preferential tariffs concessions in EU.
  • Abundant supply of skilled labour at very competitive rates;

In addition to the above, the Nigeria EPZ’s regulatory regime is liberal and provides a conducive environment for profitable operations. The incentives available are among the most attractive in Africa and compares favourably with those in other parts of the world. These include:

a. Exemption from all Federal, State and Local Government taxes, levies and rates

b. Approved enterprises shall be entitled to import into a Zone, free of customs duty on capital goods, consumer goods, raw materials, components and articles intended to be used for purposes of and in connection with an approved activity.

c. Freedom from legislative provision pertaining to taxes, levies. Duties and foreign exchange regulations.

d. Repatriation of foreign capital on investment in the zone at any time with capital appreciation of the investment.

e. 100% foreign or local ownership of factory allowable

f. One stop approvals, (factory management deals with only the management of the zone) which grant all licenses whether or not the business is incorporated in the Customs territory

g. Unrestricted remittance of profits earned by investors

h. Permission to sell 100% of total production in the domestic market

i. No import or export license

j. Rent free land at construction stage, thereafter rent shall be as determined by the management of the zone. Foreign manager and qualified personnel may be employed by companies operating in the Zones

k. Operations within a zone shall commence on the date when the constructions of the perimeter fence and gate have been completed and the Authority has declared it so.


Where else could one get information about Nigeria Nigeria’s economic data?

Nigeria has an embassy or High Commission in most countries of the world. Please visit the Nigerian Embassy or High Commission in your country. For online information on Nigeria’s economic data, please, or www.


What other Agencies are involved in the investment process in Nigeria?

The foremost investment Agency in Nigeria is the Nigerian Investment Promotion Commission (NIPC). The Commission however collaborates with other agencies to facilitate investment in Nigeria. Among these are:

  • Corporate Affairs Commission

565 Ndola Sq off Micheal Okpara Street
Wuse, Zone 5
P. M. B. 198
Tel: 234-9-5241016, 5241046-50
Fax: 234-9-521017


  • Nigerian Export Promotion Council

Block 312, Kumba Street,
P.M.B. 133
Tel: 234-9-5230980, 5230932, 5230933, 5230981
Fax: 234-9-2340931


  • Nigerian Export Processing Zones Authority

Shehu Shagari Way
Tel: 234-9-234060, 2343062
Fax: 234-9-2343061, 2343063


  • Federal Ministry of Foreign Affairs

Maputo Street, Wuse Zone 3
P.M.B.130, Garki, Abuja
Tel: 234-9-523049, 5230185-6, 5230490

  •   Federal Ministry of Commerce

Old Federal Secretariat Complex
Area 1, P.M.B. 88
Garki, Abuja
Tel: 234-9-2341687, 2341687, 2341490, 2348454, 2341484


  • Federal Ministry of Internal Affairs

Old Federal Secretariat Complex,
Area 1, P.M.B. 7007,
Garki, Abuja
Tel: 234-9-2341934-5, 2342426


  • Federal Ministry of Finance

Federal Ministry of Finance Building,
Ahmadu Bello Way, Central Business District
P. M. B. 14, GArki, Abuja
Tel: 234-9-2346932, 2346928, 2346286, 2346289


  • Federal Ministry of Industry
    Old Federal Secretariat, Area 1
    P.M.B. 85Garki, Abuja
    Tel: 234-9-2341690


  • National Tourism Development Corporation

Old Federal Secretariat, Area 1
Garki, Abuja

Which is the Agency responsible for privatization in Nigeria?

The Agency which is the secretariat for the National Council on Privatisation is located at

No.1, Osun Crescent, Off IBB Way
Maitama, Abuja
Tel: 234-9-5235256

The Nigerian Government has put in place a number of investment incentives for the stimulation of private sector investment from within and outside the country. While some of these incentives cover all sectors, other are limited to some specific sectors. The nature and application of these incentives have been considerably simplified. The incentives include:


The Companies Income Tax Act has been amended in order to encourage potential and existing investors and entrepreneurs. The current rate in all sectors, except for petroleum, is 30 percent.


The grant of Pioneer Status to an industry is aimed at enabling the industry concerned to make a reasonable level of profit within its formative years. The profit so made is expected to be ploughed back into the business.

Pioneer status is a tax holiday granted to qualified or (eligible) industries anywhere in the Federation and seven-year tax holiday in respect of industries located in economically disadvantaged local government area of the Federation. At the moment, there is a list of 69 approved industries declared pioneer industries, which can benefit from tax holiday.

To qualify, a joint venture company or a wholly foreign-owned company must have incurred a capital expenditure of not less than five million Naira whilst that of qualified indigenous company should not be less than N150,000.00. In addition, an application in respect of Pioneer Status must be submitted within one year the applicant company starts commercial production otherwise the application will be time-barred


1 Cultivation, Processing and Preservation of food crops and fruits Preserved canned foodstuff and fruits, tea, coffee, refined sugar, tomato puree/juice etc.
2 Integrated dairy production Butter, cheese, fluid milk and powder, ice cream (by products, livestock, minor edible products).
3 a) Deep sea trawling and processingb) Coastal fishing and shrimping Preserved sea foods, fish and shrimps, fishmeal
4 Mining lead, zinc, and iron and steel from iron ore Iron and steel products
5 Manufacture of iron and steel from Iron ore Iron and steel products
6 The smelting and refining of non-ferrous base metal and the manufacture of their alloys Refined non-ferrous base metal and their alloys
7 Mining and processing of barytes, bentonites and associated minerals Barytes, bentonites and associated minerals
8 Manufacture of oil well drilling materials containing a predominant proportion of Nigerian raw materials Barytes, bentonites and associated minerals
9 The manufacture of cement Cement, clinker
10 Manufacture of glass and glassware Sheet glass, pharmaceuticals and laboratory glasswares
11 Manufacture of lime from local limestone Lime
12 Quarrying and processing of marbles Marbles and processed marbles
13 Manufacture of ceramic products Refractory and heat insulating constructional products, laboratory ware
14 Manufacture of basic and intermediate i) Basic and intermediate organic chemical; ii) Basic and intermediate in-organic chemicals;iii) Fertilizers;iv) Petro-chemical;v) Caustic soda and chlorinevi) Pesticide and insecticide
15 Formulation and manufacture of pharmaceuticals Pharmaceuticals, health vitamins
16 Manufacture of yeast, alcohol and related products Yeast, industrial alcohol and related products
17 Manufacture of paper pulp Paper pulp
18 Manufacture of yarn and man-made fibres Yarn and synthetic fibres
19 Manufacture of machinery involving the local manufacture of substantial proportion of components thereof Office and industrial machinery, equipment and apparatus (whether or not electrical)
20 Manufacture of products made wholly or mainly of mental Pipes and tubes structure metal products
21 Manufacture of nets from local raw materials Fishing nets, mosquito nets and related products
22 Manufacture of gas cylinders Gas cylinders
23 The processing of local wheat flour materials Flour and Offal
24 Rubber plantation and processing Rubber
25 Gum/Arabic plantation and processing Gum Arabic
26 Manufacture of fertilizers Ammonia, Urea Superphosphate and nitrogenous fertilizers
27 Vehicle Manufacture Motor Vehicles and Motor-cycles, Tri-cycles and Automotive components
28 Oil palm plantation and processing Palm Oil, palm kennel and Offal’s
29 Manufacture of automotive and other components Automotive and other components.
30 Book printing Books
31 Large Scale Mechanized Farming Wheat, Maize, Rice and Sorghum
32 Cattle ranching and piggery of not less than 500 herds Cattle and pigs of not less than 500 herds
33 Manufacture of Gypsum Gypsum
34 Re-refining or re-cycling of waste oil Low power oil
35 Manufacture of electrical appliances/ equipment/components and parts Generators, transformers, meter, control, pressing irons, switch gears, test equipment, ballets/ starters/ lighters, discreet components, resistor/capacitors/coils/semi-conductors/ conductors
36 Ship building, repairs and maintenance of ocean going vessels Ships, boats and barges.
37 Manufacture of computer and computer chips Computer hard and soft ware chips
38 Manufacture of cameras, photographic equipment and other materials Cameras, photographic equipment or any component thereof
39 Diving and underwater engineers Underwater engineering services.
40 Local fabrications of machinery, equipment Machinery
41 Manufacture of tools Machines and hand tools
42 Installation of facilities for aircraft manufacture and maintenance of aircraft Aircraft maintenance and manufacture
43 Installation of scientific instruments and communication equipment Scientific instruments, radio, audio play-back/recorders, loudspeaker units, amplifying systems, microphones, video playbacks/ recorders, PBX, telephone handset, tele-printers, trans-receivers, autophones/aerials.
45 Manufacture of gas and distribution Gas and gas distribution
46 Manufacture of Solar energy powered equipment and gadgets Solar panels, refrigerators, water pumps, calculators, etc
Fish and shrimps
47 Large-scale inland fishing farms Fish and shrimps
48 Bitumen mining and processing Bitumen
49 Salt production Salt
50 Manufacture of fire fighting equipment and detection systems Fire fighting equipment and detection systems
51 Manufacture of cables Electrical, telephone and other cables
52 Manufacture of medical equipment X-ray, oxygen equipment, etc
53 Mineral oil prospecting and production Petroleum
54 Manufacture of lubricants Grease, hydraulic/engine oil, gear oil, etc
56 Manufacture of flat sheets Flat sheets
57 Manufacture of oven, cookers, cold rooms, refrigerators, fridges, freezers, air conditioner Oven, cookers, cold rooms, refrigerators, fridges, freezers, air conditioner
58 Manufacture of agricultural machinery and equipment Ploughs, harvesters, threshers, planters etc
59 Manufacture of materials handling and equipment Cranes, forklifts etc
60 Establishment of foundries Moulds, casting, etc
61 Manufacture of alum Alum
62 Manufacture of enzymes Enzymes
63 Manufacture of concentrates Food/fruits concentrates
64 Manufacture of welding electrodes Welding electrodes
65 Manufacture of nails Nails, related items
66 Manufacture of iron rods Rods from billets
67 Manufacture of hops Brewing hops
68 Information and communication technology (ICT) Manufacture/production of ICT equipment, hardware and software
69 Tourism Development of holiday resorts, hotels, sporting and recreational facilities
70 Real Estate Development – Rental income from residential and commercial premises;- Capital gains from any real estate disposed of within a specified period
71 Utility services – Independent power generation utilizing gas, coal and renewable energy sources;- All aspects of transportation such as rail, road and waterways- Indigenous telecommunications companies other than GSM operations


Industrial establishments are expected to engage in Research and Development (R&D) for the improvement of their processes and products. Up to 120 per-cent of expenses on (R&D) are tax deductible, provided that such R&D activities are carried out in Nigeria and are connected with the business from which income or profits is derived. Also, for the purpose of R&D on Local raw materials, 140 per-cent of expenses are allowed. Where the research is long-term, it will be regarded as a capital expenditure and will be written off against profit. The result of such research could be patented and protected in accordance with internationally accepted Industrial Property Rights.


The current rates applicable in respect of capital allowances are:

S/N Qualifying Expenditure in Respect of:- Initial Allowance (%) Annual Allowance (%)
1 Building Expenditure 5 10 per Annum
2 Industrial Building Expenditure 15 10
3 Mining 20 0
4 Plant excluding furniture and fittings 20 10
5 Furniture and Fittings 15 10
6 Motor Vehicle Expenditure 25 20
7 Plantation equipment expenditure 20 33
8 Housing Estate Expenditure 20 10
9 Ranching and Plantation Expenditure 25 15
10 Research and Development Expenditure 25 12
11 Public Transportation Motor Vehicle 30

The amount of capital allowance to be enjoyed in any year of assessment is restricted in Nigeria to 75% of assessable profit in case of manufacturing companies and 66% in case of others, except such companies in agro-allied industries that are not affected by this restriction. If leased assets are used in agro-allied ventures, the full (100%) capital allowance claimed will be granted. Moreover, where the leased assets are agricultural plants and equipment, there will be an additional investment allowance of 10% on such expenditure.


This is applicable to industrial establishments that have set up inplant training facilities. Such industries enjoy a two percent tax concession for a period of five years.


This is a form of incentive granted to industries that provide facilities that ordinarily, should have been provided by government. Such facilities include access roads, pipe borne water and electricity. Twenty percent (20%) of the cost of providing these infrastructural facilities, where they do not exist, is tax deductible.


Without prejudice to the provision of the pioneer status enabling law, a pioneer industry sited in economically disadvantaged Local Government Area is entitled to 100% tax holiday for seven years and an additional 5% capital depreciation allowance over and above the initial capital depreciation allowance.


Industries with high labour/capital ratio are entitled to tax concessions. These are industries with plants, equipment and machinery, which essentially are operated with minimal automation. Where there is automation, such automation should not be more than one process in the course of production. The rate is graduated in such a way that an industry employing 1,000 persons or more will enjoy 15 percent tax concession, while an industry employing 200 will enjoy 7 percent and those employing 100 will enjoy 6 percent and so on.


10% tax concession for five (5) years. This applies essentially to engineering industries, where some finished imported products serves as inputs. The concession is aimed at encouraging local fabrication rather than the mere assembly of completely knocked down parts.


This incentive is granted to companies engaged in manufacturing which incur qualifying capital expenditure for the purposes of approved expansion, etc. the incentive is in the form of a generalized allowance of capital expenditure incurred by companies for the following:-
· Expansion of production capacity
· Modernization of production facilities
· Diversification into related products


A tax credit of 20% is granted for five years to industries that attain the minimum level of local raw material sourcing and utilization. The minimum levels of local raw materials sourcing and utilization by sectors are: –

Agro-allied – 70%
Engineering – 60%
Chemicals – 60%
Petrochemicals – 70%



(a) Companies with turnover of less than N1 million are taxed at a low rate of 20% for the first five years of operation if they are in the manufacturing business.

(b) Dividend from companies in manufacturing sector with turnover of less than N1 million is tax-free for the first five years of their operation.

(c) Dividends derived from manufacturing companies in petrol chemical and liquefied natural gas sub-sector are exempted from tax.


(a) Companies in the agro-allied business do not have their capital allowance restricted. It is granted in full i.e. 100%.

(b) The payments of minimum tax by companies that make small or no profits at all do not apply to agro-allied business.

(c) Agro-allied plant and equipment enjoy enhanced capital allowances of up to 50%.

(d) Processing of agricultural produce is a pioneer industry;
consequently, there is 100% tax-free period for 5 years
or projects into processing of agricultural produce.

(e) Agricultural and Agro allied Machinery:
All agricultural and agro-industrial machines and equipment to enjoy 1% duty.

(f) Agricultural Credit Guarantee Scheme Fund (ACGSF) administered by the Central Bank of Nigeria:
Up to 75% guarantee for all loans granted by commercial banks
for agricultural production and processing.

(g) Interest Drawback Program Fund:
60% repayment of interest paid by those who borrow from banks under the ACGS, for the purpose of cassava production and processing provided such borrowers repay their loans on schedule.


The following incentives are available in the solid minerals sector:
(a) 3 to 5 years tax holiday;
(b) Low income tax of between 20% and 30%;
(c) Deferred royalty payments depending on the magnitude of the investment and the strategic nature of the project;
(d) Possible capitalization of expenditure on exploration and surveys;
(e) Extension of infrastructure such as roads and electricity to mining sites;
(f) The holder of a mining lease shall, where qualified, be entitled to:
i) Depreciation or capital allowance of 75% of the certified true capital expenditure incurred in the year of investment and d50% in subsequent years
ii) Investment allowance of 5%
iii) Exemption from payment of customs & import duties
iv) Expatriate quota & resident permit for approved expatriate personnel
(g) In addition to roll-over relief under the capital gains tax (CGT), companies replacing their plants and machinery are to enjoy a once-and-for-all 95% capital allowance in the first year with 5% retention value until the assets is disposed, 15% will be granted for replacement of an asset.


The incentives in this sector are granted to companies that are into joint ventures with the Nigerian National Petroleum Corporation and have signed Memorandum of Understanding. The incentives are:
· Guaranteed minimum margin of USS2.50 bl;
· Accelerated capital allowances which provides that the capital allowances can be carried forward indefinitely;
· Graduate royalty rates approved for oil companies.

Onshore production in territorial waters and continental shelf areas beyond 100 meters.

Investment tax allowances (ITA) is granted to a company in respect of any asset for the accounting period. The ITA is graduated as follows:
On shore – 5%
Off shore in depth of up to 10m – 10%
Off shore in depth of between 100-200m – 15%
Off shore in depth of over 200m – 20%


In view of the enormous potentials in this sector, Government has approved the following fiscal incentives:


· Applicable tax rate is the same as the company income tax which is currently at 30%
· Capital allowance at the rate of 20% per annum in the first four years, 19% in the fifth year and the remaining 1% in the books
· Investment tax credit at the current rate of 5%
· Royalty at the rate of 7% on shore and 5% off shore


– Capital allowance as in production phase above
– Tax rate as in production phase
– Tax holiday under pioneer status


– Applicable tax rate under PPT is 45%
– Capital allowance is 33% per year on-straight line basis in the first three years with 1% remaining in the books
– Investment tax credit of 10%
– Royalty 7% on-shore 5% off-shore, tax deductible


Fiscal arrangements are reviewed as follows:
o All investments necessary to separate oil from gas from reserves into suitable product is considered part of the oil field development.
o Capital investment facilities to deliver associated gas in usable form at utilization or transfer points will be treated for fiscal purposes as part of the capital investment for oil development.
o Capital allowances, operating expenses and basis for assessment will be subjected to the provisions of the PPT Act and the revised Memorandum of Understanding (MOU).


o Companies engaged in gas utilization are to be subjected to the provisions of the Companies Income Tax Act (CITA)
o An initial tax free period of three years renewable for an additional two years
o Accelerated capital allowances after the tax-free period in the form of 90% with 10% retention in the books
o 15% investment capital allowance, which shall not reduce the value of the asset.

In 1998, the government approved additional incentives to support the gas industry in the following areas:
– All gas developmental projects, including those engaged in power generation, liquid plants, fertilizer plants, gas distribution/transmission pipelines are taxed under the provisions of Companies Income Tax (CITA) and not the Petroleum Profit Tax;
– All fiscal incentives under the gas utilization down stream operations since 1997 are to be extended to industrial projects that use gas i.e. power plants, gas to liquids plants, fertilizer plants, gas distribution/transmission plants;
– The initial tax holiday is to be extended from three years to five years;
– Gas is transferred at 0% PPT 0% Royalty;
– Investment capital allowance is increased from 5% to 15%;
– Interest on loan on gas project is to be tax deductible provided that prior approval was obtained from the Federal Ministry of Finance before taking the loan; and
– All dividends distributed during the tax holiday shall not be taxed.


Government provides non-fiscal incentives to private investors in addition to a tariff structure that ensures that investors recover their investment over a reasonable period of time, bearing in mind the need for differential tariffs between urban and rural areas. The tariff structure as approved by the regulatory authority, Nigerian Communication Commission, also provides adequate cross-subsidy between the profitable trunk and local calls of the urban and non-profitable operation of the rural areas.

Other Incentives in place are:-
a) Manufacture/installation of telecommunications related equipment is considered as pioneer activity. As a result, they enjoy 5 to 7 years tax holiday depending on location.
b) Taxes and duties do not exceed those charged on essential electrical goods.

(vii) ENERGY (Electricity)

Among the incentives put in place by Government to encourage investors in the sector are:

Tax holiday of 5-7 years is granted to companies that manufacture:

a) Transformers, meters, control panels, switchgears, cable and other electrical related equipment, which are considered pioneer products/industries:
b) Power plants using gas are assessed under the company income tax act at a reduced rate of 30%.


The following incentives have been put in place to encourage domestic and foreign investors’ participation in the tourism industry in Nigeria:
i) The tourism sector was accorded preferred sector status in 1999. This makes the sector qualify for incentives (available to similar sectors of the economy) such as tax holiday, longer years of moratorium and import duty exemption on tourism related equipment.
ii) Provision of basic infrastructure that is, road, water, electricity, communications etc to centre of attraction. Some states have specific areas as tourism development zones thereby making acquisition of land easier.
iii) Provision of land for tourism development at concessional rates.
iv) Availability of soft loans with long period of moratorium.


The following incentives are in place to encourage investment in the sector:
i) Shipbuilding, repairs and maintenance of vessels, boat, barges, diving and underwater engineering services, aircraft maintenance and manufacturing are considered pioneer products. As a result, they enjoy 5-7 years tax holiday depending on location.


Export incentives are aimed at encouraging and assisting exporters to increase and diversify the total value and volume of non-oil exports from Nigeria. These incentives are designed to address the major problems of supply, demand and price competitiveness of Nigeria’s export. Some of the incentives now take the form of Negotiable Duty Credit Certificate (N-DCC) and are as indicated below:

(i) Manufacture – In – Bond Scheme
The Manufacture – in – Bond Scheme is designed to encourage manufacturers to import raw material inputs and other intermediate products duty-free for the production of exportable goods, backed by a bond issued by any recognized financial institution. The bond will be discharged after evidence of exportation and repatriation of foreign exchange has been produced.

(a) Guidelines:

(i) The manufacturer-in-bound scheme (MIBS) shall be applicable to export manufacturers only.

(ii) Interested manufacturers should apply to the Federal Ministry of Finance using the prescribed forms.

(iii) For a manufacturer to enjoy the scheme, the factory premises must be approved for that purpose by the Nigerian Customs service.

(iv) Approval including the Import Requirement Certificate( IRS) should be obtained within a period of two months and transmitted to the Nigerian Customs service for implementation.

(v) The Nigerian Customs Service will determine acceptability guarantee Bond issued by Commercial or Merchant Bank or NEXIM or Insurance Companies covering not less than 110 per cent customs duty payable on each consignment.

(vi) Under this scheme, manufacturers of export commodities will be entitled to import duty-free raw material inputs, CKDS and intermediate inputs whether prohibited or not for the manufacture of export commodities.

(vii) The Manufacturer-in-Bond Scheme shall operate on an annual (12 calendar months) importation basis as the exporter wishes. For prohibited items however, the scheme shall operate Import by Import basis.

(viii) The Bond, which shall be effective from the date of its issuance by the Bank shall be discharged when the condition stipulated therein have been fulfilled.

(ix) The Nigerian Customs Service will periodically monitor the utilization of raw materials imported under this scheme until the Bond is fully executed.

(x) In the event of inability of any manufacturer to fulfill the conditions stipulated in the Bond, the manufacturer to fulfill the conditions stipulated in the Bond, the manufacturer shall apply to the Nigerian Customs Service through its approved dealer Bank, for an extension of the Bond particularly when the life of the Bond has expired. The extension of the Bond shall not exceed three months.

(xi) Repatriation of the foreign exchange realized from the transaction shall be confirmed by the Central Bank of Nigeria before the Bond is discharged.

(xii) Bill of Entry marked “Manufacturer-in-Bond Scheme” shall be used for clearance of goods under the scheme.

(xiii) A Committee comprising the Ministry of Finance, representatives of the Nigerian Customs Service, Nigerian export Promotion Council, Standard organization of Nigeria and the Central bank of Nigeria shall monitor the scheme. The monitoring body shall render a quarterly Report to the NMIBS Committee.

(xiv) In the event of default by the manufacturer, the Nigerian Customs Service shall redeem the Bond by calling on the guarantor to pay up the appropriate customs duties and other associated charges.

(xv) A manufacturer participating in the Manufacturer-in Bond Scheme is expected to designate a warehouse or store in his factory premises for the storage of inputs and finished goods; and

(xvi) Import Duty re[ort (IDR), clean Report of Findings (CRF), Form ‘M’ and other relevant documents for this scheme shall be clearly marked “MIB Scheme”.

(b) Duty Drawback Scheme:

Duty Drawback scheme provides for refunds of duties/sur-charges on raw materials including packing and packaging materials used for the manufacture of products upon effective exportation of the final products. The new Duty Drawback scheme shall give automatic refunds (60%) on initial screening by the Duty Drawback Committee and upon the presentation of bond from a recognized Bank, Insurance Company or other financial institution. The Bond will cover 60% of the refund to be made to the exporter and will only be discharged after final processing of the application has been made. At the end of the processing of exporters claims, the Duty Drawback Committee shall grant any balance where applicable or request for refunds for any over payment made.

(c ) Duty Drawback Facilities:

The scheme provides for fixed drawback and individual drawback facilities. The fixed Drawback facility is for those Exporters/Producers whose export products are listed in the Fixed drawback schedule to be issued from time to time by the Committee. When the import content of the export produce is more or less constant, and import prizes (including exchange rate), tariff rates and technology used are relatively stable or “fixed”, it is possible to calculate a standard Impute-Output Co-efficient Schedule (ICS) for these category of products on the basis of which a fixed drawback rate can be computed to be rebated per unit of export product.

Whereas the individual drawback is for producers/exporters who do not qualify under the fixed drawback facilities. It is therefore a straight forward traditional drawback mechanism under which duty is paid on all import inputs. The duties are subsequently, rebated on inputs used for export production. As general case the final export./producer can apply for the

(d) Eligibility:

A trading Company which collects industrial products from one or more manufacturers as well as a trading Company which imports raw material inputs including packaging and packaging materials used for the production of goods exported by him could also apply for the scheme. Such a trading company must have entered into a contract with final producer of the product in such a way that Duty drawback Committee can obtain necessary information and documents to enable the Committee act appropriately.

Applications must be companies incorporated in Nigeria.

( e) Time Limit:

Duty Drawback application must be filled within a maximum of two years from the date of exportation. In order to qualify for the drawback payment (both individual and fixed drawback) exportation of the product which was produced with imported inputs must be completed within 18 months after the importation of the inputs.

(f) Application Procedure
Application for either Fixed or individual Drawback Facilities should file the following documents to the Duty Drawback Committee.
(i) Completed new application form for Duty Drawback Rate/Refund obtained from the Duty Drawback Rate/Refund obtained from Duty Drawback Secretariat and all Zonal Offices of the Nigerian Export Promotion Council

(ii) Attach clear photocopies of the following documents in triplicates:

Import bill of entry for Home use (Customs and Excise Form C 188) for the respective raw material inputs used for the export production.

Import bill of landing for the raw material inputs used for the export production.

Letter of contract agreement between the Trading Company and producer in cases where the Trading Company is applying for the facility

Current registration certificate with NEPC

(iii) In addition to the above documents, all applications for refunds should be filed with the following in triplets:

Export Bill of Entry for Non-Domestic Goods (Customs and Excise Form sale 98)

Form NXP

(iv) Bank Bond to be issued by a recognized Bank or Insurance Company to the tune of 60 per cent up front payment approved by the Committee as duty drawback refund and to guarantee the refund of any overpayment made to the exporter.

(g) Rules of Duty Drawback Application and Processing:

The following rules have to be observed to simplify the processing procedures:

(i) For the same export product defined in an export entry documents, all inputs used to produce a given export article should be treated as part of a single application and therefore cannot be divided into separate duty drawback applications.

If imported inputs, registered in a single import entry document are sub-divided and used for production of more than one export consignment, the import entry document should include information on the production of inputs and the balance remaining to be used.

(ii) Export Expansion Grant (EEG) Scheme

(a) Incentive rates:

The scheme will operate the “Weighted Eligibility Criteria” in assessing application for EEG. The baseline data as supplied by individual applicant company would be used in its assessment. Thus the method of assessment is company specific. A company’s EEG assessment would be conducted once yearly and the determined rate will apply throughout the year.

The weighted eligibility criteria has four bands: 30% 20%,10%, and 5%. The following template will be used in assessing the incentive rate for every EEG applicant.

Determination of Export Performance – Eligibility Criteria


S/N Eligibility Criteria Company Data Threshold Weight Company Score
1 Local value added     25%  
2 Local content     20%  
3 Employment (Nigerians)     20%  
4 Priority Sector     10%  
5 Export Growth     20%  
6 Capital Investment     5%  
Total Weight 100%

A new entrant into the EEG scheme shall provide prior period financial statement or where applicable an investment plan for its assessment.

(c) Eligibility:

(i) Export must be registered with the Nigerian Export Promotion Council (NEPC).

(ii) Eligible exporter shall be a manufacturer producer or merchant of products of Nigeria origin for the export market (i.e. the products must be made in Nigeria).

(iii) An exporter must have a minimum annual export turnover of N5million and evidence of repatriation of proceeds of exports.

(iv) Exporter-company shall submit its baseline data which includes Audited Financial statement and information on operational capacity to NEPC.

(d) Validity for EEG Application

Qualifying export transaction must have the proceeds fully repatriated within 180 days, calculated from the date of export.

(iii) Export Development Fund Scheme
The Scheme provides financial assistance to private sector exporting companies to cover part of their initial expenses in respect of the following export promotion activities:

a) Participation in training courses, symposia, seminars and workshops in all aspects of export promotion
b) Advertising and publicity campaigns in foreign markets
c) Export market research and studies
d) Production design and consultancy
e) Participation in trade missions, buyer-oriented activities, overseas trade fairs, exhibitions and sales promotion
f) Cost of collecting trade information, and
g) Backing up the development of export oriented industries.

(iv) Trade Liberalization Scheme (TLS) of Economic Community of West African States (ECOWAS)
This is an export liberalization incentive that focuses on the ECOWAS sub-region. The Scheme is an incentive primarily geared towards export activities within the ECOWAS sub-region. The objective is to significantly expand the volume of intra-community trade in the sub-region via the removal of both tariff and non-tariff barriers to trade in good originating from ECOWAS countries. This affords preferential access to the ECOWAS market from Nigeria.


The Oil and Gas Export Free Zone Act No. 8 of 1996 established an Oil and Gas Free Zone Authority to manage, control and co-ordinate all the activities within the zone. This zone encompasses three oil and gas service centres around the ports of Onne (near Port Harcourt), Calabar and Warri. All three ports have enhanced stacking and warehousing facilities awaiting subscribers. Incentives and fiscal measures approved by government that favour and encourage large investments in the region include:

· No personal income tax
· 100% repatriation of capital and profit
· No pre-shipment inspection for goods imported into the free zone.


The Federal Government of Nigeria has passed an aggressive Free Zone Law which has created a business friendly environment benefiting from the following incentives:

· Complete tax holiday for all Federal, State and Local Government taxes, rates, custom duties and levies.
· One-stop approval for all permits, operating licences and incorporation papers.

· Duty-free, tax-free import of raw materials for goods destined for re-export.

· Duty-free introduction of capital goods, consumer goods, components, machinery, equipment and furniture.

· Permission to sell 100% of manufactured, assembled or imported goods into the domestic Nigerian Market.

· When selling into the domestic market, the amount of import of import duty on goods manufactured in the free zones is calculated on the basis of the value of the raw materials or components used in assembly not the finished product.

· 100% foreign ownership of investments.

· 100% repatriation of capital, profits and dividends.

· Waiver of all import and export licenses.

· Waiver on all expatriate quotas for companies operating in the zones.

· Prohibition of strikes and lockouts.

· Rent-free land during the first 6 months of construction.


(i) Exemption from tax of companies profits in respect of goods exported from Nigeria provided the proceeds are repatriated to Nigeria and used exclusively for purchase of raw materials,
plants equipment and spare parts

ii) Exclusion from taxes the profits of companies whose supplies are exclusively from input to the manufacturing of products for exports.

iii) All new industrial undertakings including foreign companies and individual operating in an Export Processing Zone (EPZ) are allowed full tax holidays for three consecutive years.

iv) As a means of encouraging industrial technology, companies and other organizations that engage in research and development activities for commercialization enjoy 20% investment tax credit on their qualifying expenditure.

v) Dividends distributed by Unit in Nigeria are free of tax and no withholding tax is deducted there from since such incomes have already suffered tax in the first instance.

vi) All companies engaged wholly in fabrication of tools, spare parts and simple machinery for local consumption and export are to enjoy 25% investment tax credit on their qualifying capital expenditure while any tax payer who purchases locally manufactured plants and machinery are similarly entitled to 15% investment tax credit on such fixed assets bought for use.



For the purpose of promoting identified strategic or major investment, the Commission shall, in consultation with appropriate Government agencies, negotiate specific incentive packages for the promotion of investment as the Commission may specify.


In the last few years, double taxation agreements have been entered into by Nigeria with a number of countries. These agreements are entered into with a view to affording relief from double taxation in relation to taxes imposed on profit taxable in Nigeria and any taxes of similar character imposed by the law of the country concerned.

The method of relief from double taxation under Nigeria’s tax treaties is by way of a “tax credit”. The mechanism of the tax credit is such that the tax payable in Nigeria on profits of a Nigeria Company being remitted into the country is reduced by the amount of “foreign tax” paid abroad. The converse is equally true where an overseas company receives profits from abroad. Nigeria has DTA with the following countries:

  • UK;
  • France;
  • Netherlands;
  • Belgium;
  • Pakistan;
  • Canada;
  • Czech Republic;
  • Philippines; and
  • Romania.

Negotiations are in progress at various stages with other countries like Turkey, Russia, India, and Korea.

Other countries have indicated their interest to commence negotiation of tax treaties with Nigeria. As a concession to Nigeria’s treaty partners, government has approved a lower treaty rate of 7.5 on dividends, interest, rent and royalties when paid to a bonafide beneficial owner of a treaty country.


As part of additional effort to foster foreign investors’ confidence in the Nigeria economy, Government continues to enter into bilateral investment promotion and protection agreements (IPPAs) with countries that do business with Nigeria. The IPPA helps to guarantee the safety of the investment of the contracting parties in the event of war, revolution, expropriation or nationalisation. It also guarantees investors the transfer of interests, dividends, profits and other incomes as well as compensation for dispossession or loss. To this end, Nigeria has concluded and signed IPPAs with:

  • France;
  • United Kingdom;
  • Netherlands;
  • Romania;
  • Switzerland;
  • Spain;
  • South Africa; etc.

Negotiations with the United States of America, Belgium, Sweden and the Russian Federation are at various stages.


The government in repealing the Nigerian Enterprises Promotion Act of 1972 (Amended in 1977 and in 1989) and promulgating the Nigerian Investment Promotion Commission Act of 1995 has liberalized the ownerships structure of business in Nigeria. The implication of this is that foreigners can now own 100% shares in any company as opposed to the earlier arrangement of 60%-40% in favour of Nigerians.


Under the provisions of the Foreign Exchange (Monitoring & Miscellaneous Provision Act No. 17 of 1995), foreign investors are free to repatriate their profits and dividends net of taxes through an authourised dealer in freely convertible currency.


The Nigerian Investment Promotion Commission Act guarantees that no enterprise shall be nationalized or expropriated by any government in Nigeria.

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See Below Selected Nigeria Exporting Products


  • Furniture
  • Clothing
  • Food Products
  • Commodities
  • Minerals
  • Automobiles


  • Cassaiterite
  • Columbite
  • Gelena
  • Gold
  • Iron-ore”
  • Ilemmite
  • Lead-Zinc
  • Manganese
  • Moleybdenite
  • Asbestos
  • Limestone
  • Coal
  • Lignite
  • Emerald
  • Aquamarine
  • Ruby
  • Sapphire
  • Granite
  • Marble


  • Alkylate
  • Alcoholic Beverages
  • Aluminum products
  • Adhesives
  • Ball pens
  • Bolt and Nuts
  • Baby food and feeding bottles
  • Chemicals
  • Cosmetics and perfumes
  • Furniture
  • Foam products
  • Garments and suits
  • Handicrafts
  • Insecticides
  • Palm kernel/edible oil
  • Rubber sheets
  • Lubricants
  • Liquor
  • Powder
  • Leather products
  • Automobile (Peugeot)
  • Polyester yarn and chip
  • Textiles
  • Tires and tubes
  • Printing ink
  • Glycerin


  • Cocoa
  • Coffee
  • Cashewnuts
  • Rubber
  • Kolanuts
  • Palm kernel
  • Coconuts
  • Cotton
  • Ginger
  • Charcoal
  • Cow horns and hooves
  • TimberCimelina
  • Shrimps and prawns
  • Sheanut
  • Sesame seeds