“Nigeria is and will always be an attractive place to do business”, says Abiola Niagwan.
As a nation classified as developing, this means that there is a tremendous potential for businesses to grow. She explains more about why businesses should invest in Nigeria, and where they should be cautious in order to avoid any possible pitfalls.
Why is Nigeria attractive at the moment, as a place to do business?
There are so many areas that have yet been untapped, so many infrastructures yet to be developed. Nigeria is just about getting into its stride of modernisation and the current generation is not sleeping. They are working hard, starting businesses that will change the nature of the society, investing in growth areas like Agriculture, Manufacturing and innovative start-ups. Most raw materials needed for businesses to function can actually be sourced locally in Nigeria. This is why the Made in Nigeria movement is trending at the moment.
If there is anywhere in Africa for any foreign company to invest, it is in Nigeria.
The recession made a lot of Nigerian Companies to be more in-ward-looking and visionary in their approach to business particularly in the private sector. The public sector was also not to be left behind in the sense that it made the public sector more proactive in their responses to government/public sector activities and was a wake-up call for civil servants to be more productive. Government regulatory agencies/authorities are more alive to their responsibilities and better cooperation between the public and private sectors. There are also established channels for reporting misconducts in the business/corporate environment as well as the public sector which has generally helped to boost the confidence of stakeholders in the corporate world.
The recession was a clarion call for all and sundry (public and private sectors) to meet the challenges posed by the recession. Private Public Partnership (PPP) and CSR are being given the impetus and drive they require to foster a better corporate and social environment and I must say all strata of society are involved in one way or the other. There is more awareness and enlightenment about business activities even at grassroots level.
What benefits does the Nigerian tax system and corporate regimes offer to businesses?
The Nigerian Government identifying the potentials the country has for attracting foreign investors has realised that creating a tax system that is investor-friendly will only promote further growth. The current company tax rate in Nigeria is lower than most African countries. The Government also allows for no tax payable in the 1st year of all companies and three year tax holiday for companies involved in pioneering businesses. In terms of registering a company, this used to be a lengthy process but has now been simplified with the introduction of online name availability approval, a singular incorporation form as opposed to the previous 4/5 forms, and the e-filing and e-stamping of the new form which has done away with the need to physically go to the tax office to stamp the forms.
What are the potentials pitfalls, and how can you ensure your clients avoid them?
• Nigerian laws and Acts need to be studied carefully especially the tax laws. I would advise any company looking to come into Nigeria to get a good Lawyer and Tax consultant.
• I think one of the bigger disadvantages of doing business in Nigeria is Power Generation. Nigeria still struggles very much in this area, even though the Government is working hard at stabilising power supply.
• The Banks could also pose a problem. Banks have a lot of restrictions and ceilings on banking activities placed on them by the governing body, Central bank of Nigeria (CBN). It is best to work closely with your account officer and reputable accounting firm.
Abiola Niagwan
Legal Practitioner
Mrs Abiola F. Niagwan is a Legal Practitioner of over 30 years standing having been called to the Nigerian Bar in 1981 after her first degree programme at the University of Lagos, Akoka Lagos.
She was thereafter employed by the Federal Ministry of Justice as a Pupil State Counsel in 1982 and posted to the then Federal Ministry of Works and Housing as Assistant Legal Adviser.
In 1994, Mrs. Niagwan left the Federal Civil Service for the private sector. She joined the C & C Group in 1995 as the Group Company Secretary/Legal Adviser and is still there to date. She has been an active member of the International Bar Association and some of its Committees since 1990. She is fully involved in the activities of the International Construction Projects and Corporate Counsel Committees.
She is one of the Golden Link Ambassadors of the National Cancer Prevention Programme (NCPP) involved in generating awareness and enlightenment on cancer in its various forms and also in raising funds for the establishment of screening centres across the country.
