Nigeria: Operating a Business

Setting Up a Company

Private Limited Company (PLC): Number of partners: Minimum two, maximum 50
Capital (max/min): At least 10,000 NGN and not less than 25% of the authorize share capital must be taken by the subscribers
Shareholders and liability: Limited to the shares
Public Limited Company (LTD): Number of partners: Minimum two, ma
Capital (max/min): At least 500,000 NGN and the subscribers must take up at least 25% of the authorized share capital
Shareholders and liability: Limited to the shares
Company limited by guarantee (LBG): Number of partners: Minimum two (and maximum fifty for private companies)
Capital (max/min): At least 10,000 NGN
Shareholders and liability: Limited to the shares
Unlimited company (UNLTD): Number of partners: Minimum two (and max fifty for private companies)
Capital (max/min): At least 10,000 NGN for private companies and 500,000 NGN for state-run companies
Shareholders and liability: Joint, several and non-limited liability of the members or shareholders

Setting Up a Company	Nigeria	Sub-Saharan Africa
Procedures (number)	7.0	7.5
Time (days)	7.2	21.3

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Nigeria.

	2018	2019	2020
Labour Force	60,517,054	63,226,720	62,242,961

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

Legal Weekly Duration: The general work week is 40 hours, with all workers entitled to two to four weeks of annual leave, overtime and paid leave. This does not apply for agricultural and domestic workers.
Retirement Age: The Pension Reform Act (PRA) or 2014 does not specify an age of retirement, which depends on the contractual conditions of each employee. Access to Retirement Savings Account (RSA) is only allowed after having retired. If an employee retires at age 50 or older, she or he can have immediate access to the RSA. If an employee works for an employer for a month, her or his contribution will be paid by the employer in the RSA for that month. In the state sector, one must retire after 35 years of service or at 65 years (70 years for university professors). For more information, see the National Pension Commission website.
Working Contracts: The Labour Code provides that the employer must give employees a written report within three months of the employee contract coming into force. The contract must include information such as the location of the employer and the employee, the position, a job description including working hours, compensation, vacation allowance and holiday pay, etc. Three-quarters of Nigerians work in the informal and agricultural sectors or are unemployed.
Labour Laws: Consult Doing Business Website, A summary of the labour regulations that apply to local entreprises.

Minimum Wage: NGN 18,000 per month (source: ILO, 2011).
Average Wage: The average salary in Nigeria is $2 per day.
Social Contributions: Social Security Contributions Paid By Employers: 7.5%
Social Security Contributions Paid By Employees: 7.5%

Social Dialogue and Involvement of Social Partners: Unions tend to resolve issues related to working conditions, wages, benefits, health and safety measures quickly through negotiations. Collective bargaining in the oil and gas sector is also relatively efficient compared to other sectors.
Labour Unions: Nigeria Labour Congress (NLC)
Unionisation Rate: Approximately 30% of the total labour force in the public and formal private sectors is unionised. However, workers in the agricultural sector are not unionsied and make up more than half of the workforce.
Labour Regulation Bodies: Ministry of Labour and Employment

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