This article provides a clear overview of typical company formation and maintenance costs in Nigeria for 2025. We detail official fees, average professional service costs, and the steps entrepreneurs should consider when budgeting for a standard Private Company Limited by Shares (Ltd) in Nigeria.
Company Creation Costs in Nigeria (2025)
The main expenses associated with setting up a Nigerian Private Company Limited by Shares (Ltd) are codified and relatively accessible. Below is a breakdown of the standard fees and required contributions, as set by the Corporate Affairs Commission (CAC) and relevant authorities.
| Expense Item | Amount (NGN) | Amount (USD, $1=₦1,500) |
|---|---|---|
| CAC Registration Fee (for share capital up to ₦1 million) | ₦10,000 | $6.67 |
| Stamp Duty (share capital ₦1 million) | ₦7,500 | $5.00 |
| Name Reservation Fee | ₦500 | $0.33 |
| Professional/Lawyer Fees (average) | ₦30,000 | $20.00 |
| Minimum Share Capital Requirement | ₦10,000 | $6.67 |
| Total Average Upfront Cost | ₦50,000 | $33.33 |
Source: cac.gov.ng
Ongoing Annual Maintenance Costs
Running a Nigerian private limited company involves annual filings and, if you opt for professional services, associative fees. The total yearly amount varies depending on the complexity of your accounts and level of outside assistance required. The table below presents standard annual maintenance costs for 2025:
| Maintenance Item | Amount (NGN) | Amount (USD, $1=₦1,500) |
|---|---|---|
| Annual Returns Filing Fee (CAC) | ₦5,000 | $3.33 |
| Professional/Lawyer Fees for Annual Returns (average) | ₦10,000 | $6.67 |
| Basic Accounting/Bookkeeping Services (average) | ₦20,000 | $13.33 |
| Tax Filing Fees (using a professional) | ₦25,000 | $16.67 |
| Total Annual Maintenance (min-max) | ₦15,000 – ₦60,000 | $10.00 – $40.00 |
These figures reflect typical costs for a standard, single-entity operation with straightforward reporting requirements. Actual costs may be higher for complex or multi-director companies.
Source: cac.gov.ng, firs.gov.ng
Summary Table: Company Establishment and Maintenance Costs (2025)
| Category | Amount (NGN) | Amount (USD, $1=₦1,500) |
|---|---|---|
| Company Creation (one-off, average) | ₦50,000 | $33.33 |
| Annual Maintenance (min – max) | ₦15,000 – ₦60,000 | $10.00 – $40.00 |
Sources for Official and Regulatory Data
Pro Tips: Managing Company Formation and Compliance Costs
- Prepare supporting documents and decision statements in advance to minimize professional service hours and associated fees.
- Use the CAC’s online portal for company registration and returns—it streamlines the process and reduces potential delays or need for intermediaries.
- For basic filings and compliance, some founders may handle processes themselves, but professional input is recommended for more complex structures or to avoid inadvertent errors.
- Consider annual budgeting for maintenance to avoid late penalties and keep company filings up to date with local authorities.
Overall, the process and costs of establishing and maintaining a standard Nigerian limited company are transparent by regional standards, with clear government-mandated fees and manageable ongoing compliance requirements. For companies seeking predictable, scalable operations within Nigeria, early budgeting and streamlined administrative practices can help keep total expenses within the typical ranges noted above for 2025.