Nigeria is a flourishing economy with a versatile corporate ecosystem and with that in mind; here are a few things that a company must do post-business setup.
The temptation to do business and tip the scales of global markets is never-ending, and with this progressive perspective comes the idea to expand into more profitable locations for growing and developing the business. Speaking of development, it seems that the word ‘development’ could be Nigeria’s favourite word in the dictionary. Nigeria has been a flourishing economy through the government’s efforts in the past semi-decade resulting in the creation of a diverse portfolio of companies establishing a corporate stronghold in Nigeria.
Nigeria – A Growing Economy
In recent times, Nigeria used to be nothing more than a petrol dominated economy, but more recently, things have been quite adventurous for the ambitious nation. The government has made significant investments in terms of infrastructure developments and establishing fully functional working venues where companies can set up branches and run their operations in Nigeria. Even though 46% of the population experiences a low standard of living, Nigeria has still gone on record to experience quintessential economic growth with a 2.5% increase in the year 2019. Along with economic growth, the overall estimated GDP of Nigeria for the year 2019 could go on to surpass $400 Billion indicating that there is stable economic development in Nigeria facilitating active businesses to operate in the African continent’s alpha economy.
Resources facilitating Business in Nigeria
1. Availability of Human Resources
The vast population of Nigerian’s that have been affected by the 2016 recession are still in their recovery phases with the overall unemployment rate of 23.1% slowly reducing due to new businesses establishing in Nigeria. The unprecedented unemployment rate hints at the massive availability of labour and human capital resources. Hence, this availability could be beneficial for manufacturing and logistics-based companies as they can acquire employment at affordable rates, thereby reducing human resource expenditure.
2. Untapped Natural Resources
Apart from being a hotspot for oil and gas trade as Nigeria has been credited to possess the second-largest oil and gas reserve in the African continent; the nation also possesses several significant natural resources that have not been tapped due to lack of finances in the government treasury. The portfolio of resources hidden inside Nigeria’s earth consists of – zinc, tin, iron ore, coal, limestone, niobium, lead and vast reserves of fertile land for agriculture.
3. Government Support
The government has been on the verge of its own set of exclusive activities and operations to attract foreign direct investments, multi-national conglomerates and prominent government entities to enter the Nigerian market. Whether be it for the purpose of issuing government bonds backed by oil trade or conducting events such as the ‘Nigeria Build Expo – An event to promote and celebrate the best infrastructure projects’ and ‘Ceramica – An Exhibition of luxury ceramic products, the government has been going above and beyond to get a spot in the global spotlight. Future investments and private-public partnerships with the government may turn out to be beneficial for businesses that would make the first move to extend their hand towards collaborative ventures with the government.
6 Things to do Post Business Setup in Nigeria
- Register with the Corporate Affairs Commissions (CAC) of Nigeria as the CAC happens to be an autonomous body that regulates company formation and management in Nigeria. Registering with the CAC will avail of the various tax benefits and regulatory benefits that companies receive in different industrial zones of Nigeria.
- Post flourishment of the business, create positive bonds with government entities such as charitable institutions, Non-government organisations and not for profit companies as these institutional relationships will be significant for future business operations.
- Avail company secretarial services to maintain business transparency with the government and with the general public (in the case of public limited companies) as the said service will provide legal support to the company’s operations.
- The ambitious government of Nigeria is mainly investing in many development projects that can benefit businesses in a plethora of fields whether it be for expanding the business distributional reach or provide companies with corporate hubs to build better networks. Post the setup of the business; one should always be prepared to grasp new opportunities that could bring about significant growth to the company.
- Register for tax payments with the Federal Inland Revenue Service (FIRS) and avail the benefits that registered companies avail post business setup in Nigeria. As per the Nigerian taxation system, companies do not have to pay corporate tax in bulk amounts, but instead, they must pay Income tax and Personal tax of the Company Director with reduced rates.
- Nigeria is a developing industrial hotspot, and hence, one can find different corporate entities trying to make a name for themselves in the market. Create a network with these entities as these bonds will be crucial for future necessities such as – raising funding, joint venture, company sale or wrap up, mergers and acquisitions, and so on. Moreover, the laws in Nigeria for business partnerships are very flexible.
Nigerian Business Ecosystem
Every country poses as a new market for businesses trying to expand to multiple nooks and corners of the globe. Nigeria, in terms of a market, happens to be a flexible and straightforward market of consumers that openly highlight their preferences towards the consumables they prefer and the brands they favour. Though the consumer population is ever welcoming to new products in the market, they also do not hesitate to ostracise companies and entire brands that do not gain the trust and preference of the general public. Therefore, it is essential to maintain the right brand image through CSR activities and appropriate marketing activities.
As for the business entities, it is crucial to network with the indigenous businesses to gain more knowledge of the market. English and French are the most prominent business languages that are exercised in various corporate gatherings such as meetings, negotiations, seminars and conferences.
Now that you have apt knowledge about how companies operate in Nigeria and the necessary things to do post business setup, you are partially prepared to establish your venture. We also do acknowledge the complications related to business setup in Nigeria, which is why we would like to offer a helping hand for a promising business in Nigeria. Contact us to know more about our incorporation services and post-incorporation services in Nigeria.