Indian firms are described by the High Commission of India, Abuja as "the second largest employer in Nigeria after the Federal Government" -- reflecting more than 200 Indian companies operating across pharmaceuticals, manufacturing, textiles, and power, registered via Nigeria's Corporate Affairs Commission and NIPC.
A dominant Indian business presence, and the standard registration route
Indian firms are described by the High Commission of India, Abuja as “the second largest
employer in Nigeria after the Federal Government,” with more than 200 Indian-owned or Indian-operated
companies reportedly employing roughly 100,000 Nigerians, concentrated in pharmaceuticals, power and
electrical transmission, manufacturing and consumer goods, textiles, construction, and air services. The
standard incorporation route is registration with the Corporate Affairs Commission (CAC) under the
Companies and Allied Matters Act (CAMA) 2020, followed by registration with the Nigerian Investment
Promotion Commission (NIPC) via the One-Stop Investment Centre, required for any enterprise with foreign
participation -- this platform found NIPC's registration fee cited at NGN 150,000 with typical processing
around 48 hours, per NIPC's own published FAQ page.
A genuinely unsettled minimum capital requirement
This platform found a widely reported but genuinely unsettled minimum share capital figure of NGN 100
million (paid-up) for companies with foreign participation, per the Ministry of Interior's 2022 Handbook
on Expatriate Quota Administration, required to obtain a Business Permit. It flags a documented regulatory
inconsistency: the Corporate Affairs Commission briefly announced this requirement in December 2023 then
withdrew the announcement three days later, and it was not formally reflected in CAC's own incorporation
checklist as of mid-2024, even though the Ministry of Interior actively enforces it for Business Permit
purposes. This platform recommends verifying current status before relying on this figure. A foreign
investor need not hold the full amount themselves -- only their proportionate shareholding requires proof
of foreign-currency inflow via a Certificate of Capital Importation (CCI).
Sector restrictions, and the CERPAC work-permit route
Certain sectors, including production of arms and ammunition, narcotics and psychotropic substances,
and military or paramilitary uniforms, are reserved exclusively for Nigerian investors under the NIPC
Act's negative list -- this platform recommends checking NIPC directly for the current full list. Once
incorporated, a company with foreign equity generally needs Ministry of Interior Expatriate Quota approval
before it can sponsor expatriate staff for a CERPAC (Combined Expatriate Residence Permit and Aliens
Card).
Common mistakes NRIs and Indian businesses make when entering Nigeria:
- Treating the NGN 100 million minimum capital figure as a settled, uniformly-applied rule rather
than confirming its current enforcement status.
- Skipping NIPC registration, which is mandatory for any enterprise with foreign participation.
- Not securing Expatriate Quota approval before attempting to sponsor expatriate staff for
CERPAC.
