Nigeria lets foreigners own 100% of a company (except in “negative list” sectors such as arms and narcotics), but a company with foreign shareholders must have authorised share capital of at least ₦100 million. The usual route is to incorporate with the Corporate Affairs Commission (CAC), register for tax, bring capital in through a bank to obtain a Certificate of Capital Importation (CCI), register with the NIPC, then obtain a Business Permit and Expatriate Quota. Allow two to three months in total.
Five steps to set up a foreign-owned company in Nigeria
- CAC incorporation1–2 weeks
- Tax ID registration~1 week
- Import capital, obtain eCCI24–48 h
- NIPC registration~2 weeks
- Business Permit and Expatriate Quota3–7 weeks
Key points
- 100% foreign ownership is allowed under section 17 of the NIPC Act.
- Companies with foreign participation need at least ₦100m authorised share capital (current CAC requirement); it does not have to be paid in before incorporation.
- Always bring investment funds in through an authorised dealer bank and get an electronic CCI (eCCI). It is your basis for repatriating profits and capital later.
- CAC annual returns are due by 30 June each year.
- From 2026 the Pioneer Status tax holiday has been replaced by the Economic Development Incentive (EDI).
Setting up a company
| Step | Agency | Typical time |
|---|---|---|
| 1. Incorporation (name, articles, share capital) | CAC | 1–2 weeks |
| 2. Tax ID (TIN) registration | Nigeria Revenue Service (NRS) | About 1 week |
| 3. Import capital and obtain eCCI | Authorised dealer bank / CBN | 24–48 hours |
| 4. Foreign investment registration | NIPC | About 2 weeks |
| 5. Business Permit and Expatriate Quota | Ministry of Interior | 3–7 weeks |
Documents, costs and common pitfalls for each step are in our complete guide to company registration in Nigeria. For linking the quota to staff visas, see the Expatriate Quota guide.
Tax and incentives
Under the new tax law in force from 2026, companies with turnover above ₦100m pay 30% company income tax, while small companies (turnover up to ₦100m and fixed assets up to ₦250m) are exempt. A 4% development levy applies, and VAT stays at 7.5%. The old Pioneer Status, which gave up to five years tax-free, has been replaced by the Economic Development Incentive: a 5% annual tax credit on qualifying new capital spending, granted through the NIPC. Read more in our guide to the 2026 Nigeria Tax Act.
Free zone or onshore company?
Export processors that import a lot of equipment and inputs often set up in a free zone for duty and tax relief and quota waivers. Under the new tax law, however, a zone enterprise pays full tax if more than 25% of its sales go into the domestic market. Trading, retail and service businesses that sell mainly in Nigeria usually register an onshore company. The trade-offs are covered in our guide to Nigeria’s free trade zones.
Money, exchange rates and location
Most Chinese firms in Nigeria settle in US dollars and naira, so currency moves matter. The official rate was about ₦1,535 per dollar at the end of 2024 and about ₦1,333 in mid-October 2026. Set the currency and reference rate in quotes, costings and contracts; our naira exchange guide explains the channels. As for location, the MOFCOM guide says Chinese residents cluster in Lagos, Kano and Abuja: Lagos is the commercial and port hub, Abuja the seat of government, and Kano the traditional trading centre of the north. Start with our Lagos city guide.
Common questions at a glance
Can I trade as an individual? Foreigners generally operate through a company and need the right business permit and residence status. Can profits go back to China? Foreign investors holding a CCI can repatriate dividends, profits, loan service and capital. Do I need a Nigerian partner? Not in most sectors, though some regulated industries have their own rules; check the latest official guidance.
Compliance and community relations
In September 2026 some Lagos traders protested against Chinese wholesalers selling directly to retail customers and asked for talks with the government and Chinese suppliers. In October 2026 a Chinese consulate official in Lagos said China would not shield Chinese nationals who break Nigerian law. Make sure your business scope, permits, staffing and tax records can stand up to inspection. China’s Ministry of Commerce advises new Chinese firms to register with the embassy’s Economic and Commercial Office or the Lagos consulate, and to consider joining the China General Chamber of Commerce in Nigeria.
Sources
- Mondaq: The 2026 foreign direct investor’s legal guide to Nigeria
- EY: Economic Development Incentive replaces Pioneer Status (May 2026)
- 商务部《对外投资合作国别（地区）指南·尼日利亚（2025年版）》
- PwC Nigeria: The Nigerian tax reform acts
- Arise TV: Traders protest against Chinese retailers over direct sales in Lagos (Sep 2026)
- Blueprint: Naira ends 2025 at ₦1,429/$
- Nairametrics: Naira holds near ₦1,333 (Oct 2026)
- Vanguard: China urges Nigerian media to uphold one-China principle (Oct 2026)
In this section
FAQ
Can a foreigner own 100% of a Nigerian company?
Yes. Section 17 of the NIPC Act allows full foreign ownership outside the negative list, such as arms and narcotics.
What is the minimum share capital for a foreign-owned company?
Current CAC practice requires at least ₦100m authorised share capital for companies with foreign participation; it need not be paid in before incorporation.
What is a CCI and why does it matter?
The Certificate of Capital Importation is issued within 24–48 hours when funds come in through an authorised bank, and it underpins your right to repatriate profits and capital.
Is Pioneer Status still available?
No. From 1 January 2026 it was replaced by the Economic Development Incentive, a 5% annual tax credit on qualifying capital expenditure.
Facts checked: 2026-10-22 · Niriliya Huaren Editorial Team · How we check facts