How To Get a Business Permit In Nigeria: Complete Step-By-Step Guide
This guide is kept current with annual reviews based on the latest regulations from the Federal Ministry of Interior, CAC and NIPC.
What is a Business Permit in Nigeria and who needs it?
A business permit in Nigeria is the official authorization issued by the Federal Ministry of Interior, allowing a wholly foreign-owned company or a joint venture with foreign participation to legally operate in Nigeria.
If Nigerians fully own your company, you do not need a business permit to start operations. While the permit regulates foreign participation, a business license in Nigeria is a separate requirement that authorizes specific types of business activities. Knowing the difference between these two is essential for compliance, and it all begins with understanding how to register a business in Nigeria, as proper incorporation is the foundation for obtaining any permit or license.
This comprehensive, regularly updated guide shows you exactly how to get a business permit in Nigeria, from incorporation with the CAC to final approval by the Ministry of Interior.
Key Facts About Getting a Business Permit in Nigeria
- Who Needs It: Wholly foreign-owned companies or joint ventures with foreign shareholders.
- Who Doesn’t Need It: Companies that are 100% Nigerian-owned.
- Regulator: Federal Ministry of Interior.
- Purpose: To ensure compliance with immigration, investment, and corporate laws, and to monitor foreign business participation in the Nigerian economy.
- When Required: Immediately after incorporation but before starting operations.
Legal Framework for How to Get a Business Permit in Nigeria
The requirement for a business permit in Nigeria is anchored in several laws and regulations that outline the conditions, processes, and compliance rules for foreign-owned companies.
Key Laws and Regulations for Obtaining a Business Permit in Nigeria
- Companies and Allied Matters Act (CAMA) 2020 – Section 78 prohibits a foreign company from carrying on business in Nigeria without registration. This ensures foreign companies are incorporated before applying for a business permit.
- Immigration Act 2015 – Section 36 requires written consent from the Minister of Interior before a foreigner can start or operate a business in Nigeria. This consent is known as the business permit.
- Immigration Regulations 2017 – Provide detailed procedures, timelines, and standards for the implementation of the Immigration Act, including the issuance of business permits and expatriate quotas.
- Nigerian Investment Promotion Commission (NIPC) Act – Section 20 mandates all enterprises open to foreign participation to register with the NIPC after incorporation. This registration is a prerequisite for obtaining a business permit.
- Revised Handbook on Expatriate Quota Administration 2022 – Raised the minimum share capital requirement for companies seeking a business permit to ₦100 million, setting financial eligibility standards for foreign participation.
Note: While the Immigration Regulations 2017 remain the legal basis, Nigeria introduced a fully electronic visa system on May 1, 2025, streamlining application processes, shortening decision timelines (e.g., 48 hours for e-Visas).
Business Permit vs Business License in Nigeria: Key Differences
A business permit and a business license are not the same thing in Nigeria. They are issued by different authorities, serve different purposes, and apply to different categories of businesses.
Key differences at a glance:
| Feature | Business Permit | Business Licence |
| Purpose | Authorizes a foreign-owned or foreign-participated company to operate in Nigeria. | Authorizes a company to operate in a regulated sector of the economy. |
| Who Needs It | Wholly foreign-owned companies or joint ventures with foreign shareholders. | Any company (foreign or local) that operates in a regulated industry such as oil, telecoms, mining, banking, or healthcare. |
| Issuing Authority | Federal Ministry of Interior. | Industry-specific regulator (e.g., NUPRC for oil, NCC for telecoms, CBN for banking). |
| When Required | Immediately after incorporation and before starting operations. | Before starting operations in that specific sector. |
| Legal Basis | Immigration Act 2015, Immigration Regulations 2017. | Sector-specific laws and regulations. |
| Example | A U.S.-owned consulting firm in Lagos must get a business permit to operate legally. | A local petroleum company must get a marketing licence from NUPRC to sell petroleum products. |
Foreign investors must obtain a business permit in Nigeria before starting operations in Nigeria. Companies operating in regulated industries also require a sector-specific business license, even if they are locally owned. In some cases, a company may need both a business permit and a business license to operate legally
Minimum Share Capital Requirements to Get a Business Permit in Nigeria
The share capital requirement for obtaining a business permit in Nigeria can be confusing because it is governed by two different regulators, the Corporate Affairs Commission (CAC) and the Federal Ministry of Interior.
Current requirements:
- Corporate Affairs Commission (CAC) – Requires a minimum share capital of ₦100 million for registering a company with foreign participation. This ensures the business is legally incorporated in Nigeria.
- Federal Ministry of Interior – Under the 2022 Expatriate Quota Handbook, also requires a minimum share capital of ₦100 million for companies applying for a business permit and/or expatriate quota. This ensures eligibility to operate a foreign-owned business and employ expatriates.
Why this matters:
While the CAC’s requirement focuses on company incorporation, the Ministry of Interior’s requirement applies during the business permit application process. In practice, this means foreign-owned companies must meet the ₦100 million share capital threshold from the outset to avoid delays when applying for a permit.
Regulatory Bodies Involved in Business Permit Applications in Nigeria
Obtaining a business permit in Nigeria involves interacting with multiple government agencies, each responsible for distinct stages of the process, ranging from incorporation to investment approval and immigration compliance.
Key regulatory bodies and their roles:
- Corporate Affairs Commission (CAC) – Incorporates the company and issues the Certificate of Incorporation. This is the first step before you can apply for a business permit.
- Nigerian Investment Promotion Commission (NIPC) – Registers companies with foreign ownership or participation and monitors foreign investments. You must complete NIPC registration immediately after CAC incorporation but before applying for a business permit.
- Federal Ministry of Interior – The main authority for issuing business permits and expatriate quota approvals.
- Central Bank of Nigeria (CBN) – Issues the Certificate of Capital Importation (CCI) through authorized banks after foreign capital is brought into Nigeria.
- National Office for Technology Acquisition and Promotion (NOTAP) – Registers technology transfer agreements between foreign companies and Nigerian entities. This applies if your business involves importing technical expertise or technology.
- Industry-Specific Regulators – For regulated sectors like oil and gas, telecoms, banking, and mining, you may need additional sector-specific licences, which are obtained alongside or after your business permit.
Important: While the Federal Ministry of Interior issues the business permit, compliance with CAC, NIPC, and other relevant agencies is mandatory before your application can be approved.
Step-by-Step Guide: How to Get a Business Permit in Nigeria
If you are a foreign-owned company or part of a joint venture with foreign participation, you must obtain a business permit from the Federal Ministry of Interior before starting operations in Nigeria.
Follow these steps:
Step 1: Incorporate Your Company with the CAC
- Register your business with the Corporate Affairs Commission (CAC).
- Ensure your minimum share capital is ₦100 million, which meets both CAC and Ministry of Interior requirements.
- Obtain your Certificate of Incorporation and CAC status report.
Step 2: Register with the NIPC
- Apply to the Nigerian Investment Promotion Commission (NIPC).
- Submit your incorporation documents, details of foreign shareholders, and a business plan.
- Pay the prescribed NIPC registration fee.
Step 3: Obtain a Certificate of Capital Importation (CCI)
- Transfer the required foreign capital into Nigeria via an authorized bank.
- Request a CCI from the bank, issued on behalf of the Central Bank of Nigeria (CBN).
- The CCI proves that foreign investment funds have been officially brought into Nigeria.
Step 4: Prepare Required Documents for the Business Permit
You will need:
- Certificate of Incorporation (CAC)
- Memorandum and Articles of Association
- CAC status report or shareholding structure
- Feasibility report and project implementation plan
- Lease agreement or Certificate of Occupancy for office premises
- Joint venture agreement (if applicable)
- Tax Clearance Certificate
- Evidence of capital importation (CCI)
Step 5: Submit Application to the Ministry of Interior
- Submit your completed application with all required documents to the Federal Ministry of Interior.
- Pay the official processing fee as prescribed by the Ministry.
- If applying through a solicitor, ensure they are registered to handle corporate immigration matters.
Step 6: Await Approval
- The Ministry of Interior will review your application for completeness and compliance.
- Once approved, you will be issued your Business Permit, allowing your company to legally operate in Nigeria.
Full List of Documents Required to Get a Business Permit in Nigeria
When applying for a business permit in Nigeria, the Federal Ministry of Interior requires specific documents to verify your company’s incorporation, ownership, and compliance with investment regulations.
| Document | Purpose / Notes |
| Certificate of Incorporation (CAC) | Proof that the company is legally registered in Nigeria. |
| Memorandum and Articles of Association (MEMART) | Shows the company’s objectives, ownership structure, and governance rules. |
| CAC Status Report or Forms (CAC 1.1 / old forms C02 & C07) | Details of shareholders and directors. |
| Feasibility Report & Project Implementation Programme | Outlines the business plan, financial projections, and operational strategy. |
| Tax Clearance Certificate (TCC) | Confirms that the company has no outstanding tax liabilities. |
| Lease Agreement or Certificate of Occupancy | Proves the company has secured office or operational premises. |
| Joint Venture Agreement (if applicable) | Required if the company is a partnership between Nigerian and foreign shareholders. |
| Certificate of Capital Importation (CCI) | Issued by an authorized bank to confirm foreign capital investment. |
| Evidence of Equipment Acquisition (if applicable) | Invoices or import documents for machinery, vehicles, or business equipment. |
| Approvals from Relevant Professional Bodies (if applicable) | Required for regulated professions such as law, medicine, or engineering. |
Submitting complete and accurate documents is essential to avoid delays. Missing or inconsistent paperwork is the most common reason for business permit application rejections or processing delays.
Current Fees and Processing Time for Business Permit in Nigeria
The cost of getting a business permit in Nigeria depends on the company’s structure, industry, and whether a legal representative is engaged. In addition to the official Ministry of Interior fee, applicants should account for other mandatory registrations and related expenses.
Types of Fees Involved
| Fee Type | What It Covers |
|---|---|
| Government Processing Fee | Official charge by the Federal Ministry of Interior for issuing the business permit. |
| Registration Fees | NIPC registration fees for companies with foreign ownership or participation. |
| Legal / Professional Fees | Payment to solicitors or consultants for preparing and submitting the application. |
| Document Preparation Costs | Expenses for notarizing, certifying, or translating foreign documents. |
| Compliance-Related Costs | Costs for tax clearance, lease agreements, and other regulatory requirements. |
Note: The processing duration for a business permit in Nigeria is determined by the Ministry of Interior and depends on the completeness of documents and compliance with all prerequisite registrations. Always confirm current fees and requirements from official sources before applying.
Renewal, Modification, and Compliance for Business Permits in Nigeria
A business permit in Nigeria is not permanent. Foreign-owned companies must comply with the Ministry of Interior’s regulations to keep their permit valid and avoid penalties.
Renewal of a Business Permit
- Business permits must be renewed periodically as specified by the Ministry of Interior.
- Renewal requires updated company records, proof of tax compliance, and evidence of ongoing business operations.
- Share capital, ownership structure, and operational status must meet Ministry requirements at the time of renewal.
How to Modify or Update Your Business Permit in Nigeria
You must apply to the Ministry of Interior for modification if there are changes such as:
- Change of company name.
- Change of business address or operational premises.
- Change in directors or shareholding structure.
- Expansion into new business activities outside the approved scope.
Compliance Obligations
To remain compliant after getting a business permit in Nigeria:
- Maintain valid annual tax clearance certificates.
- Keep NIPC registration active and up to date.
- Comply with expatriate quota rules when employing foreign staff.
- Notify the Ministry of Interior promptly of significant changes in company structure or operations.
- Renew industry-specific licences if operating in a regulated sector.
Renewal, modification, and full compliance with immigration, investment, and tax regulations are essential to maintain the legal right to operate in Nigeria.
FAQ: Frequently Asked Questions About Business Permit In Nigeria
1. What common mistakes do companies make when applying for a business permit in Nigeria?
Many applicants submit incomplete or inconsistent documents, causing delays or rejection.
A frequent error is underestimating share capital requirements, incorporating with ₦10 million when the Ministry of Interior expects ₦100 million.
Another trap is engaging unregistered or fraudulent intermediaries, which can lead to penalties, rejection, or even being banned from government platforms.
2. What happens if a foreign company operates in Nigeria without a business permit?
Operating without a valid business permit is considered non-compliance under CAMA Section 78 and can result in fines, prosecution, and daily penalties until the violation is resolved.
Officials, agents, and directors of the company may also face personal liability, even if the company itself is not prosecuted.
3. Can a business permit be renewed or amended?
Yes, business permits can be renewed and amended (e.g., change of company name, address, directors, or business scope) through the Federal Ministry of Interior.
Renewal and modification are essential to remain compliant and to reflect changes in your business operations.
4. How long does a business permit last in Nigeria?
According to NIPC and other legal sources, a business permit remains valid indefinitely unless the company violates Nigerian laws or the permit is formally revoked.
Conclusion
Obtaining a business permit in Nigeria is a vital step for any foreign-owned or joint venture company seeking to operate legally in the country. While Nigerian-owned companies may not require it, foreign participation makes compliance with Ministry of Interior regulations mandatory.
Understanding the distinction between a business permit and a business license in Nigeria ensures you meet all regulatory requirements. For most companies, the journey starts with knowing how to register a business in Nigeria, as proper incorporation lays the groundwork for securing the necessary permits, licenses, and long-term compliance with Nigerian laws
For enquiries on the obtainment of a Business Permit, contact: PUKKA Solicitors – +2348058344034 – info@pukkalogistics.com.ng