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


Paying Taxes

Info

This data shows the tax that a medium-size company must pay or withhold in a given year, as well as measures of the administrative burden in paying taxes. These measures include the number of payments an entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their profits they must pay in taxes.

DB 2013 Rank 155 DB 2012 Rank 139 Change in Rank down-16
DB 2013 DTF** (% points) 42.9 DB 2012 DTF** (% points) 46.7 Improvement in DTF** (% points) down-3.8
Indicator Nigeria Sub-Saharan Africa OECD

The total number of tax payments per year. The indicator reflects the total number of taxes and contributions paid, the method of payment, the frequency of payment and the number of agencies involved for a standardized case during the second year of operation.

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Payments (number per year)
41 39 12

The time it takes to prepare, file and pay (or withhold) the corporate income tax, the value added tax and social security contributions (in hours per year).

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Time (hours per year)
956 319 176

The amount of taxes on profits paid by the business as a percentage of commercial profits.

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Profit tax (%)
22.3 19.0 15.2

The amount of taxes and mandatory contributions on labor paid by the business as a percentage of commercial profits.

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Labor tax and contributions (%)
10.8 13.3 23.8

The amount of taxes and mandatory contributions paid by the business as a percentage of commercial profit that are not already included in the categories of profit or labor taxes.

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Other taxes (%)
0.7 25.5 3.7

The total tax rate measures the amount of taxes and mandatory contributions payable by the business in the second year of operation, expressed as a share of commercial profits.

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Total tax rate (% profit)
33.8 57.8 42.7
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% profit) Notes on TTR
Corporate income tax 1 398 30% taxable profit 20.5
Social Security Contributions 12 396 8% gross salaries 8.5
Education Tax 1 2% taxable profit 1.4
Employee Compensation Contribution paid by the employer 6 1% gross salaries 1.1
Training Tax 1 1% gross salaries 1.1
Capital gains tax 1 10% capital gains 0.5
Tax on interest 0 10% interest income 0.3 not included
Tenement Tax 1 0% property value 0.2
Tax on check transactions (irrecoverable VAT) 0 5% 5/1000 of value of check 0.2
Road license 1 NGN 5,000 fixed fee depending on type of vehicle 0.2
State business tax 1 NGN 5,000 fixed fee 0.1
Infrastructure Development Tax 1 NGN 100 per employee fixed fee 0.1
Fuel tax 1 included in fuel price 0
Advertising tax 1 various rates 0 small amount
Stamp duty on contracts 1 0
Value added tax (VAT) 12 162 5% value added 0 not included
Totals: 41 956 33.8

** 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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