ABOUT NIGERIA

Amongst all the countries in the African continent, Nigeria is the most populous country in Africa and the 1st largest in terms of population, as well as the 14th largest by area. The capital of Nigeria is Abuja, though Lagos is the most populous city and economic hub. According to the report of the World Bank, Nigeria has been classified as a Lower Middle-Income Nation. The currency of Nigeria is the Nigerian Naira (NGN), and the value of 1 Indian Rupee is approximately 18.43 Nigerian Naira at the time of writing this article. The population of Nigeria was estimated to be around 229 million in 2024. The neighboring countries of Nigeria are Niger to the north, Chad and Cameroon to the east, and Benin to the west. To the south, Nigeria borders the Gulf of Guinea of the Atlantic Ocean. The official language of the country is English, but major indigenous languages such as Hausa, Yoruba, and Igbo are widely spoken. The majority of the Nigerian population practices Islam and Christianity. Nigeria has several international airports, including Murtala Muhammed International Airport in Lagos and Nnamdi Azikiwe International Airport in Abuja, with regular flights available to various parts of the world, ensuring convenient air connectivity. As Nigeria is bordered by the Atlantic Ocean, it has numerous commercial seaports, including Apapa and Tin Can Island ports in Lagos, which are vital for fulfilling the country’s trade requirements. A significant volume of goods and resources is imported and exported through these seaports.

The corporate tax rate for most companies in Nigeria is 30%. However, companies with gross revenue below NGN 25 million enjoy a reduced rate of 0%, while those with revenue between NGN 25 million and NGN 100 million are taxed at 20%. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and, if required, even helping you find a rental property for your office.

Establishing a business in Nigeria has to be done with utmost care, keeping in mind the laws of the country. The Companies and Allied Matters Act (CAMA) 2020 clearly states how a foreign investor can register a company in Nigeria. A foreign investor who is planning to start his business in Nigeria can form many different company types in the country, such as a Private Limited Company (Ltd), Public Limited Company (PLC), or a Company Limited by Guarantee. A Private Limited Company (Ltd) formed and registered in Nigeria generally allows foreign investors to own 100% of the company, provided certain capital requirements are met. The minimum authorized share capital for any company owned by a foreign investor in Nigeria is NGN 100,000,000.

In case an investor is planning to establish a Private Limited Company (Ltd) in Nigeria or a corporation business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Nigeria, and we will also guide you about how to follow the procedure while formulating your company in Nigeria.

Types of Business which can be started in Nigeria:

• Oil and Gas: Nigeria is Africa’s largest oil producer and a major exporter of crude oil and natural gas. This sector remains a dominant force in the economy, offering opportunities in exploration, production, refining, and gas infrastructure.
• Agriculture & Agribusiness: With vast arable land and a large population, agriculture is a crucial sector. Opportunities exist in crop production (e.g., rice, cassava, maize), livestock, fisheries, food processing, and agricultural technology.
• Manufacturing: Nigeria has a growing manufacturing sector with potential in areas like consumer goods, building materials, pharmaceuticals, and automotive assembly, especially for import substitution.
• Telecommunications & ICT: As Africa’s largest ICT market, there’s immense potential in expanding internet penetration, digital services, e-commerce, software development, and mobile technology.
• Financial Services: Nigeria boasts a robust financial sector with opportunities in banking, insurance, fintech, and investment management, serving a large and increasingly financially literate population.
• Infrastructure & Construction: Significant investment is needed in infrastructure, including roads, railways, power generation, and housing. This offers opportunities for construction companies, developers, and suppliers of building materials.
• Retail & Consumer Goods: With the largest population in Africa and a growing middle class, the retail sector is booming. Opportunities exist in organized retail, e-commerce, and the distribution of various consumer goods.
• Healthcare & Pharmaceuticals: There’s a high demand for quality healthcare services and pharmaceutical products. Investment in hospitals, clinics, diagnostic centers, and local drug manufacturing is highly needed.
• Renewable Energy: Given Nigeria’s energy needs and abundant solar and hydro resources, there’s a growing focus on diversifying energy sources. Opportunities exist in solar power, hydro power, and other renewable energy projects.

Advantages of Starting Business in Nigeria:

• Largest Market in Africa: Nigeria boasts the largest population in Africa, providing a massive consumer market for goods and services.
• Abundant Natural Resources: Beyond oil and gas, Nigeria has diverse mineral resources, agricultural land, and a significant youth population.
• Strategic Location and Gateway to West Africa: Its coastal access and central position make it a key trade hub for the West African sub-region.
• Diversifying Economy: The government is actively promoting diversification beyond oil, creating opportunities in non-oil sectors.
• Government Initiatives and Incentives: Various government policies and incentives are aimed at attracting foreign direct investment, including free trade zones and tax holidays for certain sectors.
• Young and Dynamic Workforce: A large and increasingly skilled young population provides a readily available workforce.
• Growing Middle Class: An expanding middle class contributes to increased purchasing power and demand for quality products and services.

Business Opportunities for Indians in Nigeria:

There are excellent business opportunities in Nigeria for new investors who are planning to start their business abroad. Nigeria has opened its doors for foreign businesses and foreign investors. In Nigeria, there are vast business opportunities for investors planning to start their business abroad. They can invest in manufacturing, infrastructure, agriculture, oil and gas, and the rapidly growing telecommunications sector. While the hydrocarbon industry has attracted major investments globally, several other sectors are seemingly less touched and have immense potential, offering new avenues for investors and good returns on investment (ROI).

Imports & Exports:

Many goods are imported and exported from Nigeria. The imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Nigeria to India:

• Crude Petroleum
• Petroleum Gas
• Gold
• Nitrogenous Fertilizers
• Cocoa Beans

Major items which are imported in Nigeria from India:

• Refined Petroleum
• Pharmaceutical Products
• Motorcycles and Cycles
• Machinery and Equipment
• Iron or Steel Products
• Rice
• Chemicals

Manufacturing:

Many products are imported into Nigeria from different countries, which is why many investors have started setting up their manufacturing plants in Nigeria. Investors have started setting up their companies in sectors such as machinery manufacturing, agricultural products processing, transport vehicles manufacturing, and drugs manufacturing.

Mining:

While oil and gas dominate, Nigeria has significant untapped solid mineral resources like gold, coal, limestone, and iron ore. Investment in the mining sector is gaining traction, offering long-term prospects.

Major Indian companies which are currently working in Nigeria:

India has a strong presence in Nigeria, with numerous Indian companies operating across various sectors. Some prominent Indian companies include:

• Airtel: A major telecommunications provider.

• Reliance Industries (through its various ventures): Involved in oil & gas, chemicals, and other sectors.

• Tata Africa Services: Engaged in automotive, steel, and other diversified businesses.

• Dufil Prima Foods (Indomie noodles): A leading player in the FMCG sector.

• Olam Nigeria Limited: Involved in agribusiness, food processing, and supply chain.

• Pharmaceutical companies: Several Indian pharma companies like Cipla, Sun Pharma, Ranbaxy (now part of Sun Pharma) have a strong presence.

• Bajaj Auto: A significant player in the two and three-wheeler market.

• Emel Group: Diverse interests including manufacturing, trading, and logistics.

• Kewalram Chanrai Group: Involved in various sectors including automotive, power, and textiles.

• SKIPPER T&D Corp: Involved in power transmission and distribution.

• GDP = $362.81 billion (2023)

• GDP Growth = 2.86% (2023)

• Ease of doing business rank = 131 (2020)

• GDP per Capita = $1,621 (2023)

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