Nigeria

Ease of Doing Business in

Nigeria

This page summarizes Doing Business 2014 data for Nigeria. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Sub-Saharan Africa
Income Category Lower middle income
Population 168,833,776
GNI Per Capita (US$) 1,430
City covered Lagos
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
147 138 down -9

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Improvement in DTF** (% points)
46.62 46.33 down 0.29

Subnational Data


 

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2014 Rank 122 DB 2013 Rank*** 114 Change in Rank down-8
DB 2014 DTF** (% points) 74.48 DB 2013 DTF** (% points) 73.91 Improvement in DTF** (% points) up0.57

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Nigeria Sub-Saharan Africa OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
8 8 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
28.0 29.7 11.1

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
58.3 67.4 3.6

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

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Paid-in Min. Capital (% of income per capita)
0.0 125.7 10.4
No. Procedure Time to Complete Associated Costs
1 Reserve a unique company name at the Corporate Affairs Commission 5 days NGN 500 application form
2 Prepare the requisite incorporation documents and pay the stamp duty 7 days 0.75% stamp duty paid on share capital
3 Notarize the declaration of compliance with the requirements of CAMA (CAC 4) 1 day NGN 500 at the court; NGN 4,000 - NGN 5,000 with a Notary Public
4 Register at the Corporate Affairs Commission and Pay the fees at the bank desk of CAC 11 days NGN 59,592 legal fees + NGN 500 incorporation forms + NGN 30,000 incorporation fees + NGN 500 for each additional copy of Memorandum and NGN 500 for additional copy of the Articles of Association stamped + NGN 3,000 for certified true copy of memorandum
* 5 Make a company seal 1 day (simultaneous with previous procedure) NGN 4,000
6 Register for income tax and VAT at the Federal Board of Inland Revenue Department of the Ministry of Finance 4 days no charge
* 7 Register for personal income tax PAYE at the State Tax Office 2 days, (simultaneous with previous procedure) no charge
* 8 Register business premises with the Lagos State Government and Pay the business premises levy at a designated bank 1 day (simultaneous with previous procedure) NGN 10,000 paid at the beginning of first year; NGN 5,000 in subsequent years
* Takes place simultaneously with another procedure.

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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