Company registration in Nigeria in certain industries and economic sectors are govern by statues and other regulations in force that stipulate a minimum share capital threshold before a company can be successfully registered in Nigeria and commence business operation.

Having substantial share capital indicates that the company is viable, can raise additional funds if required, instill confidence in potential investors and lenders as many of these industries are highly regulated and require the investment of large sums of money.

The list below are various industries and their required minimum share capital before they can be successfully registered with Corporate Affairs Commission (CAC) in Nigeria.

However, it should be noted that the minimum share capital threshold for company registration in Nigeria with foreign participation is N100 million Naira. A person seeking to set up a business in Nigeria may seek experienced corporate law experts’ guide on how to successfully register a company in Nigeria.

SN

TYPE OF COMPANY

MINIMUM SHARE CAPITAL (N)

JUSTIFICATION

1

ISSUING HOUSE

200 Million

Securities and Exchange Commission Guidelines on New Minimum Share Capital for Market Operators

2

BROKER/DEALER

300Million

3

TRUSTEE

300 Million

4

FUND/PORTFOLIO MANAGER

150 Million

5

STOCK BROKER

200 Million

6

STOCK DEALER

100 Million

7

CORPORATE INVESTMENT ADVISER (REGISTRAR)

150 Million

8

CORPORATE INVESTMENT ADVISER

5 Million

9

INDIVIDUAL INVESTMENT ADVISER

2 Million

10

MARKET MAKER

2 Billion

11

CONSULTANT (PARTNERSHIP)

2 Million

12

CONSULTANT (INDIVIDUAL)

500,000

13

CONSULTANT (CORPORATE)

5 Million

14

UNDERWRITER

200 Million

15

VENTURE CAPITAL MANAGER

20 Million

16

COMMODITIES BROKER

40 Million

17

CAPITAL TRADE POINT

20 Million

18

RATING AGENCY

150 Million

19

CORPORATE/SUB BROKER

5 Million

20

ASSET MANAGEMENT (INTANGIBLE ASSETS)

300 Million

21

COMMERCIAL BANK WITH REGIONAL AUTHORIZATION

10 Billion

CBN Scope and Standards Commercial Regulations 2020

22

COMMERCIAL BANK WITH NATIONAL AUTHORIZATION

25 Billion

23

COMMERCIAL BANK WITH INTERNATIONAL AUTHORIZATION

50 Billion

24

MERCHANT BANK

15 Billion

CBN Scope, Condition and Minimum Standard for Merchant Banks Regulation 2, 2010

25

PAYMENT SOLUTION SERVICES (PSS) (As permissible under Super Agent, PTS and PSSP (combined))

250 Million

CBN Guidelines on licensing Framework/ Categorization for the Nigerian Payment System 2020

26

SUPER AGENT (Agent Recruitment Management and other activities as specified in the Regulatory Framework for Licensing Super Agents in Nigeria

50 Million

27

PAYMENT TERMINAL SERVICE PROVIDER (PTSP) (POS Terminal Deployment and Services, POS Terminal Ownership, PTAD, Merchant/Agent Training and Support)

100 Million

28

PAYMENT SOLUTIONS SERVICE PROVIDER (PSSP) (Payment Processing Gateway and Portal, Payment Solution/Application Development, Merchant Service Aggregation and Collection)

100 Million

29

MOBILE MONEY OPERATION (E-Money Issuing, Wallet Creation and Management, Pool Account Management activities as permissible under Super Agent)

2 Billion

30

SWITCHING AND PROCESSING (Switching, Card Processing Transaction, Clearing and Settlement Agent Services, Non-bank Acquiring Services activities as permissible under Super Agent, PTSP and PSSP)

2 Billion

31

UNIT MICRO FINANCE BANK (TIER 1)

Tier 1: 200 Million

CBN Regulations

32

UNIT MICRO FINANCE BANK (TIER 2)

Tier 2: 50 Million

33

MICRO FINANCE BANK (STATE & FCT)

1 Billion

34

MICRO FINANCE BANK (NATIONAL)

5 Billion

35

PRIMARY MORTGAGE INSTITUTION

2 Billion

36

FINANCE COMPANY

20 Million

37

BUREAU DE CHANGE

35 Million

38

NON-INTEREST BANK (REGIONAL)

5 Billion

39

NON INTEREST BANK (NATIONAL)

10 Billion

40

INSURANCE BROKER

5 Million

Nigerian Council of Registered Insurance Brokers Act, 2003

41

LIFE INSURANCE

8 Billion

National Insurance Commission Revised Regulations 2019

42

GENERAL INSURANCE

10 Billion

43

COMPOSITE INSURANCE

18 Billion

42

GENERAL INSURANCE

10 Billion

43

COMPOSITE INSURANCE

18 Billion

44

RE-INSURANCE

20 Billion

45

UNIT MICROINSURER

40 Million

Guidelines for Micro-insurance Operation in Nigeria 2018

46

STATE MICROINSURER

100 Million

Guidelines for Microinsurance Operation in Nigeria 2018

47

NATIONAL MICROINSURER

600 Million

Guidelines for Microinsurance Operation in Nigeria 2018

48

TAKAFUL INSURANCE (GENERAL AND FAMILY TAKAFUL)

200 Million

National Insurance Commission Regulations

49

PRIVATE SECURITY COMPANY/CONSULTANT

10 Million

Guideline on Requirements for Registration of Private Guard Security Companies made Pursuant to Nigerian Security and Civil Defence Corp Act No. 2 of 2003

50

PENSION FUND/ASSET CUSTODIAN

2 Billion

National Pensions Commission Requirements for Licensing of Pension Fund Custodians (FEB 2005); National Pensions Commission Revised Minimum Share Capital Requirement for Licensed Pension Fund Administrators (April 2021);

51

CLOSED PENSION FUND

500 Million

52

PENSION FUND ADMINISTRATOR

5 Billion

53

LOTTERY

5 Million

Section 2 (1), National Lotteries (Amendment) Regulation, 2007

54

SPORTS LOTTERY

30 Million

National Lottery Commission Circular

55

AIR TRANSPORT (INTERNATIONAL)

2 Billion

Nigerian Civil Aviation Authority

56

AIR TRANSPORT (REGIONAL)

1 Billion

57

AIR TRANSPORT (LOCAL)

500 Million

58

AIR AMBULANCE/FUMIGATION/ PRIVATE JET

20 Million

59

AVIATION (GROUND HANDLING SERVICES)

500 Million

60

AVIATION (AIR TRANSPORT TRAINING INSTITUTIONS)

2 Million

61

AGENTS OF FOREIGN AIRLINES

1 Million

62

TRAVEL/TOURS

30 Million

International Air Travel Agency (IATA)

63

AGRICULTURAL SEEDS, PRODUCTIONS, PROCESSING, MARKETING

10 Million

NASA Cap 5, LFN, 2004

64

SHIPPING COMPANY/AGENT

25 Million

NIMASA Guidelines for Registration

65

CABOTAGE TRADE

25 Million

66

LIFE MICRO-INSURANCE

150 Million

Guideline for Micro-Finance Operations in Nigeria (NAICOM), December, 2013

67

GENERAL MICRO-INSURANCE

200 Million

Guideline for Micro-Finance Operations in Nigeria (NAICOM), December, 2013

68

FREIGTH FORWARDING

5 Million

Registration of Freight Forwarding Regulation 2010

69

PAYMENT SERVICE BANK

5 Billion

70

HEALTH MAINTENANCE ORGANIZATION (HMO)(NATIONAL)

400 Million (Paid up)

National Health Insurance Scheme HMO Accreditation Guidelines

71

HEALTH MAINTENANCE ORGANIZATION (HMO)(REGIONAL)

200 Million(Paid up)

72

HEALTH MAINTENANCE ORGANIZATION (HMO)(STATE)

100 Million (Paid up)

Note: The content of this article is anticipated to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance. 

Article Source: https://www.adeolaoyinlade.com/en/the-breakdown-of-cac-share-capital-threshold-for-company-registration-in-nigeria/

Author:  Adeola Oyinlade & Co.