For entrepreneurs and digital nomads considering Nigeria as a base for their ventures in 2025, understanding the real costs of company creation and maintenance is essential. Many are frustrated by opaque fees and unpredictable state-imposed costs. Here, we break down the numbers—no guesswork, just data-driven clarity—so you can make informed decisions and optimize your fiscal strategy.
Company Formation Costs in Nigeria: The 2025 Breakdown
Setting up a Private Company Limited by Shares (Ltd) in Nigeria involves several mandatory fees and requirements. The average total cost to establish such a company in 2025 is NGN 50,000. Here’s how that figure is composed:
| Cost Item | Amount (NGN) |
|---|---|
| CAC Registration Fee (up to NGN 1 million share capital) | 10,000 |
| Stamp Duty (on NGN 1 million share capital) | 7,500 |
| Name Reservation Fee | 500 |
| Professional/Lawyer Fees (average) | 30,000 |
| Minimum Share Capital Requirement | 10,000 |
Source: CAC Registration Fees, FIRS Stamp Duty, Baker Tilly Nigeria
Pro Tip: Streamline Your Setup
- Reserve your company name online to avoid delays (CAC).
- Engage a local professional for filings—while it adds to the cost, it can save weeks of bureaucratic hassle.
- Keep your initial share capital at the minimum required to reduce stamp duty and registration fees.
Annual Maintenance Costs: What to Expect in 2025
Once your company is up and running, annual compliance and maintenance costs range from NGN 15,000 to NGN 60,000. The actual figure depends on your use of professional services and the complexity of your accounts. Here’s the typical breakdown:
| Maintenance Item | Amount (NGN) |
|---|---|
| Annual Returns Filing Fee (CAC) | 5,000 |
| Professional/Lawyer Fees for Annual Returns (average) | 10,000 |
| Basic Accounting/Bookkeeping Services (average) | 20,000 |
| Tax Filing Fees (if using a professional) | 25,000 |
Source: CAC Annual Returns, PwC Nigeria
Pro Tip: Optimize Your Annual Costs
- File annual returns directly with the CAC to minimize professional fees if your company structure is simple.
- Bundle accounting and tax services with a single provider for potential discounts.
- Keep meticulous records to avoid penalties and reduce the time professionals spend on your filings.
Case Example: Lean Startup vs. Full-Service Setup
Consider two digital nomads launching a tech consultancy in Lagos:
- Lean Approach: Handles filings personally, uses minimal share capital, and basic bookkeeping. Total first-year cost: NGN 35,000 (creation) + NGN 15,000 (maintenance).
- Full-Service Approach: Engages professionals for all steps, opts for comprehensive accounting. Total first-year cost: NGN 50,000 (creation) + NGN 60,000 (maintenance).
Both approaches are fully compliant, but the leaner path maximizes autonomy and minimizes state-imposed costs—a subtle but powerful hack for those who value fiscal freedom.
Key Takeaways for 2025
- Company creation in Nigeria is relatively affordable, with transparent government fees and optional professional costs.
- Annual maintenance can be kept low with a DIY approach, but professional support is available for those who prefer hands-off compliance.
- Every naira saved on bureaucracy is a naira you control—optimize your setup to suit your risk tolerance and operational style.
For more details on official fees and compliance requirements, consult these resources: