Competence Center Nigeria
Country Information
Nigeria is characterized by its large raw material deposits and an extremely attractive domestic market because of its large population. Business opportunities for German companies exist primarily in the oil and gas sector, but also in other sectors due to high demand for consumer goods and capital goods for industrial projects and infrastructure investments.
We offer our consulting expertise and support in order to establish business contacts in Nigeria. You will find more details under IHK & AHK Services.
Latest News and Events
Current news on the economy of Nigeria can be found on the website Africa Business Guide (German), which is jointly operated by Germany Trade & Invest and the AHK Southern Africa. Portal.Africa looks at the most important industries in the individual countries in Sub-Saharan Africa, provides market forecasts and detailed facts about projects and tenders. The website also notifies of events as well as economic background.
Daily news on business, politics and more is provided by The Economist and Nigerian Internet portals and newspapers such as The Guardian, Nigerian Tribune, Nigeriaworld, This Day and Vanguard.
In the IXPOS event database (German) you will find events and seminars on the target market Nigeria. Further events in Sub-Saharan Africa (German) are compiled in the IHK Blog Sub-Saharan Africa.
Economic information
The World Bank also provides comprehensive information and statistics on Nigeria in English.
The Country Commercial Guides of the American Embassy also provide an overview of the country's political system, financing opportunities and much more.
Business Guide Nigeria
Understanding the norms and behaviours of local business partners is essential for success in the Nigerian market. Our Business Guide Nigeria (nicht barrierefrei, PDF-Datei · 735 KB) (German) provides you with an overview of the most important cultural standards and their significance for business life.
The IHK blog Sub-Saharan Africa has also produced a practical guide “Interculturally Competent on the Road in Sub-Saharan Africa -Cultural Profile Nigeria” (German) as well as a comparison of the relevant “Cultural Standards and Dimensions in a German-Nigerian Comparison” (German).
Entry Requirements and Security Advice
The Federal Foreign Office (German) provides up-to-date travel and security information on Nigeria.
German nationals require a valid visa to enter Nigeria. In principle, no visa is issued on entry. Short-term business, visit or tourist visas do not entitle the holder to take up gainful employment. You can apply for a visa at the Nigerian Embassy in Berlin or the Consulate General of Nigeria in Frankfurt am Main. On the homepage you will also find specific information on how to apply for a visa and further information on entry requirements. Please ask questions about the entry requirements directly here, as you will only receive legally binding information there.
You can import and export items of personal use without any problems when travelling on business. The import and export of Naira amounts over N5,000 is subject to declaration.
Vocational Education and Training Partnership
From December 2012 to December 2018, the Giessen-Friedberg Chamber of Commerce and Industry (IHK Gießen-Friedberg) maintained a vocational training partnership (BBP) with institutions of the established economy in Nigeria. Elements of German dual vocational training were transferred to the Nigerian system.
You can find more information on this under Vocational Training Partnership Nigeria.
Import Procedure and Customs
Importing goods into Nigeria is complex and procedures are subject to frequent changes.
In April 2015, the West African Economic Community (ECOWAS) Common External Tariff and complementary safeguard measures were adopted.
Certification
All products to be exported to Nigeria require certification according to the "Standard Organisation of Nigeria Conformity Assessment Programme" (SONCAP) or by the "National Agency for Food and Drug Administration and Control" (NAFDAC). The certificate is necessary for processing payment and importation.
The Nigerian Standards Organisation has revised its mandatory conformity program SONCAP (Standards Organisation of Nigeria Conformity Assessment Programme) for imported goods.
As of May 1st, 2022, there are only four accredited inspection companies that inspect goods on behalf of SON. The contacts in Europe are Bureau Veritas and Cotecna.
The companies check whether regulated products meet the standards and technical requirements in Nigeria before shipment and confirm this with product and conformity certificates. These are mandatory for customs clearance.
The fees for SONCAP will be increased from August 1st, 2022. The cost of issuing a SONCAP certificate, for example, will increase from US$300 to US$350. A product certificate for unregistered products will cost US$500, registered products US$1,000, and licensed products US$2,000.
The following goods are exempt from SONCAP certification:
- food
- pharmaceuticals
- medical products (excluding equipment and machinery)
- chemicals used as raw materials for manufacturers registered as bonafide manufacturers
- military equipment
- goods classified as contraband by the Nigerian government
- all goods prohibited for import
- second-hand goods (except vehicles)
Import and Foreign Exchange Restrictions
Forex trading has been restricted, i.e. no foreign currencies will be issued by the Central Bank of Nigeria (CBN) for payment processing of certain imports of goods and services in the future. A list of goods affected by the foreign exchange restrictions is available online on the CBN's website. Importers may have to resort to their own foreign exchange or parallel markets. Furthermore, it is currently not possible to deposit cash into a Nigerian Forex account.
Import Duty and Import Taxes
Since 2015, a common five-tier external tariff has applied to all ECOWAS states. Currently, the following Common External Tariffs (CET) apply:
- 0% for industrial machinery and accessories
- 5% for raw materials
- 10% for semi-finished products
- 20% for finished goods
- 35% for luxury goods
The customs tariff by commodity group can be found on the European Market Access Database page.
The Carnet A.T.A. procedure for temporary admission of goods is not applied in Nigeria.
On importation, additional import duties are levied in addition to to customs duty:
- ETLS (Ecowas Trade Liberalisation Scheme): 0.5% of the customs value for all imports from non-ECOWAS countries.
- CISS (Comprehensive Import Supervision Scheme): 1% on the customs value to finance the goods inspection carried out in Nigeria.
- Surcharge: 7% on the customs duties must be paid as a fee on import.
In addition, there are further import levies (Import Levy = LVY) for certain groups of goods.
The import value added tax (VAT) is 5% of the customs value of the goods plus all customs and import duties. Important information on VAT can be found in the section “Taxes and Law”.
Further Information on Import Procedures and Customs
Due to the complexity of the procedures and the frequency of changes in the regulations, it is generally recommended to contact the AHK or CCI in advance and to involve a competent service provider (forrwarding agent or tax consultant).
Taxes and Law
The most important information on the legal system, the most common types of companies and company taxation in Nigeria can be found on our .
Company Taxation
Doing business in Nigeria requires registration with the Federal Inland Revenue Service. On their site you will find comprehensive information on tax legislation.
Corporate Taxes
All companies operating in Nigeria - with the exception of the petroleum sector - are liable to income and education tax. The income tax rate is 30% of total profits. 2% of taxable profit is still payable as education tax. Companies with foreign headquarters are only liable to pay tax on turnover arising in Nigeria. An estimate of profit (usually 20% of turnover) is often used to determine the tax base.
Value Added Tax
The VAT rate is currently a uniform 5% on the turnover of all goods or services produced or imported domestically.
Important information on turnover tax in Nigeria can be found on our (German).
For import turnover tax, the basis of assessment is the customs value plus the customs payment and all import duties. Certain goods and services such as basic foodstuffs are exempt from VAT.
Withholding Tax
A withholding tax of 5% or 10% is levied on certain payments to domestic companies and indivisuals as well as non-resident companies/investors.
Double Tax Agreement
There is no double taxation agreement with Germany.
An overview of the tax system in Nigeria is provided in the Nigeria Tax Guide 2021 by PKF of KMPG. It explains the most important types of tax, their tax base and other related topics.
Legal Advice
The German Embassy in Nigeria has compiled information from the Legal and Consular Section on its homepage. The embassy also maintains a list of lawyers working in Nigeria. Here you will also find lawyers who specialize in the field of business or tax law.
Seriousness of Business Partners
Especially at the beginning of any business initiation, there is uncertainty regarding the creditworthiness and seriousness of the potential partner. Together with a recognized credit agency, AHK Nigeria helps you to assess and check the creditworthiness of your customers and partners in Nigeria.
Under the keyword "Nigeria Connection" a number of fraud practices have become known, some of which are very sophisticated and difficult to see through.
Caution is advised, for example, when samples and specimens of goods are requested. As a rule, the person concerned is promised a follow-up order if the sample delivery was satisfactory. Frequently, the fraudsters succeed in making it extremely credible that there is a serious business interest and that a letter of credit will be opened. Then, however, a pretext is found (such as a trade fair participation) on the basis of which an immediate advance delivery is to be made. However, after the goods are shipped, there is no payment of the invoice or the check turns out to be bad.
Some recommendations have proven to be effective:
- Ask your potential business partner for a copy of the Certificate of Incorporaten as well as full contact details, a reference of the bank handling the transfer, and names and addresses of the company's lawyers, tax advisors and directors.
- Reputable companies are usually members of one or more of the following organizations: World Trade Center of Nigeria, Lagos Chamber of Industry and Commerce, Delegation of German Industry & Commerce for West Arica, Manufacturers Association of Nigeria, Association of Nigerian Exporters.
- Deliver only against full advance payment or irrevocable letter of credit confirmed by a recognized bank. In case of payment by check, the credit entry on the own bank account must be awaited in any case.
Business Partner Search and Promotion
Business Partner Search
The Enterprise Europe Network Hessen offers a cooperation database for interested companies. Thereby also cooperations and partners in countries outside Europe can be searched and found. It is also possible to enter one's own project in the database, so that partners from over 60 countries can be found.
The platform of the Gesellschaft für internationale Zusammenarbeit (GIZ), leverist, facilitates cooperation between business and development. There you can find business opportunities in emerging and developing countries, including opportunities in Nigeria.
A purely internet-based business initiation can be quite labor-intensive and possibly even risky due to the difficulties in assessing the seriousness of business partners. It is advisable to involve your own network from foreign business and to activate your contacts to fellow entrepreneurs who are already doing business in Nigeria. If you do not have these accesses, want to supplement them or have them accompanied with professional advice, it is best to use the networks and information provided for you by the AHK Nigeria, the Nigerian-German Chamber of Commerce, Germany Trade and Invest and the CCIs in Germany, among others. The offers are partly chargeable, but they are among the most qualified you can get on the market.
Public Tenders
On the website of the Bureau of Public Procurement you will find the official tenders of the Nigerian government as well as information on public tendering in Nigeria.
Development projects and tenders of international organizations on Nigeria as well as further information on the most important financing institutions for development cooperation can be found on the page of Germany Trade and Invest.
Trade Fairs
Nigeria has an overriding importance as a trade fair center in West Africa. However, the selection of trade fairs is difficult, as the quality of individual trade fairs varies from year to year and depends on the participation of foreign trade fair organizers.
Consumer-oriented universal trade fairs usually only have a fair character and are of limited interest for sales development. Trade fairs have gained in importance in recent years. In the oil and gas industry, there are very professionally organized trade shows several times a year.
To get started, it is worth taking a look at the AUMA catalog, which lists all the trade fairs that are of particular interest from a German perspective and provides basic information on the quality of the respective trade fair.
Funding Opportunities
The funding database (German) provides information on federal, state and EU funding programs and financial assistance for companies in the field of foreign trade.
As part of the German government's foreign trade fair program, the Federal Ministry for Economic Affairs and Energy (BMWi) and the Federal Ministry of Food and Agriculture (BMEL) support German companies participating in trade fairs abroad. Eligible for funding is participation in all trade fairs listed in the AUMA catalog. The programs target small and medium-sized enterprises in particular.
Good information about these foreign markets is an important basis for economic success. Those who take advantage of competent advice in this regard can take advantage of a consulting grant from the State of Hessen. In addition, the state of Hessen promotes participation in trade fairs listed in the AUMA catalog. You can find more information on this under Trade Fair Promotion Hessen (German).
When entering the Nigerian market, the Federal Ministry for Economic Cooperation and Development (BMZ) can also provide valuable support. The Federal Government promotes entrepreneurial commitment in developing countries with various instruments.
Business Scout for Development Dr. Susanne Geipert will be happy to advise you on the spot about funding opportunities.
IHK/CCI and AHK Services
Country Focus Nigeria of the CCI Giessen-Friedberg
The CCI-Network of Central Hesse is responsible for the supra-regional country focus for the Federal Republic of Nigeria. Focus chambers have developed nationwide for certain target markets. The member companies of the Chambers of Commerce and Industry affiliated to this network can benefit from these special country activities and know-how.
We offer you advice and support in establishing business contacts to Nigeria by:
- Brief information by e-mail, telephone or in site
- Basic information on customs clearance
- A strong network of experts
- Information material and fact sheets on import, customs, law and taxes as well as business opportunities in individual industries
- Research on all aspects of doing business in Nigeria
Delegation of German Industry and Commerce in Nigeria (AHK)
The Delegation of German Industry and Commerce in Nigeria offers German companies sutomer-oriented and market-related services. These include in particular:
- Information on market sectors in Germany and Nigeria, for example on laws, standards and services
- Support for market entry through targeted contact research, business partner search and verification as well as credit assessment
- Planning and realization of individual fact finding missions and support of business delegations
- Research on legal and tax issues
- Mailing from Nigeria for marketing purposes
- Organization of events such as business breakfasts
- Identification of a suitable trade fair, organization of a trade fair visit as well as support of exhibitors
Stand: 19.04.2024