Facts About Doing Business In Nigeria

By Kristen Baird


Nigeria is an African country with a population of about 150 million. A business man can capitalize on this by doing business in Nigeria. The country is popular for its oil beds which feature as one of its greatest foreign exchange earner. Currently, its government is carrying out measures to deal with red tape as well as corruption so that investors can invest in oil and other lucrative ventures that the country has to offer.

An alien who I focused on setting up in the country needs to have proper facts. Such a person must know the procedure of setting up a firm in the country. Fortunately, the process is a piece of cake as there are few restrictions for achieving this end.

A foreign national must incorporate a local entity to get started. The chosen local vehicle must be recognized by the Nigerian Investment Promotion Commission (NIPC). The Corporate Affairs Commission (CAC) will take one through the process of commencement and regulation of the firm to be set up.

Alternatively, an individual can hire a local solicitor who acts as agent to act on his behalf. This solicitor may hold shares in the local entity. Once the formalities concerning commencement are complete, the chosen agent loses his power of attorney and the principal, who happens to be the alien, takes over. CAC and NIPC websites contain valuable information and contacts containing the process of setting up a firm in the case of foreigners. It is therefore prudent for one to visit their websites to have access to the right information. All one needs to do is simply type CAC and NIPC in various search engines available and all the necessary information will become available.

Several fears come up as far as the commerce in Nigeria is concerned. Unlike what many believe, it is not necessary to engage in corrupt activities to be recognized as a legal entity. In fact, when one follows the correct channels, bribery will be unheard of.

On matters security, the state is safe for businessmen. Few violent crimes are reported every year as its government has put measures to protect nationals as well as aliens. Another issue has been religion. The nation is split into the Sectarian, Muslim North as well as Christian South. A person ought to exercise caution on religious issues to avoid being in a compromising situation on the same. This is due to the fact that there has been unrest among the divisions.

Essentially, a person needs to know how to conduct himself to avoid being caught up in any religious feud. Making a Nigerian friend to guide one through this issue would be a wise idea. Nevertheless, religious issues should not stop one from enjoying goldmine in the nation.

All in all, engaging in business activities in Nigeria bound to bring one a lot of profits. The bottom line is to use the right channels which are NIPC and CAC so as to be taken through the commencement process. One can hire a trustworthy solicitor, while working with the two associations, to act as an agent is a viable idea. After the formalities concerning commencement have been fulfilled, one is free to start operations.




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