Nigeria

Ease of Doing Business in

Nigeria

This page summarizes Doing Business 2013 data for Nigeria. The first table lists the overall "Ease of Doing Business" rank (out of 185 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 162,470,737
GNI Per Capita (US$) 1,200
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
131 131 0

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
54.3 54.0 down 0.3
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 119 119 No change
Dealing with Construction Permits 88 86 up -2
Getting Electricity 178 177 up -1
Registering Property 182 182 No change
Getting Credit 23 38 up 15
Protecting Investors 70 66 up -4
Paying Taxes 155 139 up -16
Trading Across Borders 154 153 up -1
Enforcing Contracts 98 97 up -1
Resolving Insolvency 105 104 up -1

Economy Profile

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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 2013 Rank 119 DB 2012 Rank 119 Change in Rank 0
DB 2013 DTF** (% points) 73.5 DB 2012 DTF** (% points) 72.3 Improvement in DTF** (% points) up1.2
YearNew business densityNumber of new limited liability companies
2011 0.635,314
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)
34 34 12

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)
60.4 67.3 4.5

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)
0.0 116.0 13.3
No. Procedure Time to Complete Associated Costs
1 Check the availability of company name with the Corporate Affairs Commission 5 days NGN 200 application form
2 Prepare the requisite incorporation documents and pay the stamp duty 7 days 0.75% stamp duty paid on capital
3 Notarize the declaration of compliance (CAC 4) 1 day NGN 500
4 Register the company with the Corporate Affairs Commission & pay fees at the bank desk at CAC 11 days NGN 59,592 legal fees + NGN 500 incorporation forms + NGN 20,000 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 and articles of association + NGN 2,000 for certified true copy of particulars of directors +NGN 2,000 for certified true copy of particulars of shareholders.
5 Register with the Federal Board of Inland Revenue Department of the Ministry of Finance for income tax and VAT 4 days no charge
* 6 Register for personal income tax PAYE at the State Tax Office 2 days, (simultaneous with previous procedure) no charge
* 7 Receive inspection from local government 7 days, (simultaneous with previous procedure) included in procedure 8
8 Pay fees at a designated bank 1 day NGN 18,500
* 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 indicators across all economies included in Doing Business since each indicator was 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...

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