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Minimum share capital requirements in Nigeria

Certain designated businesses have an industry-prescribed minimum share capital requirement in Nigeria. The corporate affairs commission notifies the general public of these requirements. These are also typically published on the websites of the various regulatory agencies in charge of regulating these industries.

What are shares?

Shares are small pieces of ownership in a business. For some companies, shares are a financial asset that makes it possible for any leftover profits to be split evenly among all the owners. The shares of a company are owned by the shareholders.

What is a minimum share capital?

Minimum share capital is the minimum amount of assets a company must have. The purpose of minimum share capital is to make sure that if a company goes bankrupt or has trouble with its finances, it has enough equity to pay its creditors. Therefore, various industries have specific minimum share capital requirements that a company must have before incorporating a business or going public.

What is a minimum issued share capital?

A company’s minimum issued share capital is the smallest amount of shares that a company can sell to investors. Most of the time, the minimum number of shares issued as capital is the same as the least amount a company offers to investors as shares.

The major difference between the minimum share capital and the minimum issued share capital is that the former shall be issued in the company’s Memorandum and Articles of Association, while the latter is issued as the least number of shares to the shareholders.

Minimum share capital for foreign companies in Nigeria

Foreign companies that seek to do business in Nigeria must register with the Corporate Affairs Commission and other relevant government agencies depending on the sector the company operates in. The minimum share capital requirement of a foreign-owned company in Nigeria is ten million naira (10,000,000).

Read More on the requirement for registering a foreign company in Nigeria 

Minimum share capital for companies in Nigeria

The Corporate Affairs Commission provides for a minimum issued share capital of N100,000 for private companies limited by shares and N2,000,000 for public companies limited by shares.

Industry-prescribed minimum share capital

Certain industries have a prescribed minimum share capital in Nigeria. The Securities and Exchange Commission (SEC), the Central Bank of Nigeria, the Corporate Affairs Commission and other regulatory authorities have listed minimum share capitals for various market operators, some of which are:

SectorRequired Minimum Share Capital
1. Agents of Foreign Airlines1 Million
2.Agricultural Seed, Productions, Processing, Marketing 10 Million
3.Air Ambulance/Fumigation/Private Jet 20 Million
4. Air Transport (International)2 Billion
5. Air Transport (Local)500 Million
6Air Transport (Regional)1 Billion
7Asset Management (Intangible Assets)300 Million
8Aviation (Air Transport Training Institutions)2 Million
9Aviation (Ground Handling Services)500 Million
10Brokers/Dealers 300 Million
11Bureau De Change35 Million
12Cabotage Trade25 Million
13Capital Trade Point 20 Million
14Closed Pension Fund 500 Million
15Commercial Bank with International Authorization 50 Billion
16Commercial Bank with National Authorization 25 Billion
17Commercial Bank with Regional Authorization 10 Billion
18Commodities Broker 40 Million
19Composite Insurance 18 Billion
20Consultant (Partnership, Individual and Corporate)2 Million, N500,000 and 5 Million respectively
21Corporate Investment Adviser (Registrar) 150 Million
22Corporate Investment Adviser5 Million
23Corporate/Sub Broker5 Million
24Finance Company20 Million
25Freight Forwarding 5 Million
26Fund/Portfolio Manager150 Million
27General Insurance 10 Billion
28General Micro-Insurance 200 Million
29Individual Investment Adviser 2 Million
30Insurance Broker 5 million
31Issuing House 200 Million
32Life Insurance 8 Billion
33Life Micro-Insurance 150 Million
34Lottery5 Million
35Market Maker2 Billion
36Merchant Bank 15 Billion
37Microfinance Bank (National)5 Billion
38Microfinance Bank (State & FCT)1 Billion
39Microfinance Bank Unit (Tier 1)200 Million
40Microfinance Bank Unit (Tier 2)50 Million
41National Microinsurer600 Million
42Non-Interest Bank (National)10 Billion
43Non- Interest Bank (Regional)5 Billon
44Payment Service Bank 5 Billion
45Pension Fund Administrator1 Billion
46Pension Fund/ Asset Custodian 2 Billion
47Primary Mortgage Institution 2 Billion
48Private Security Company/ Consultant 10 Million
49Rating Agency 150 Million
50Re- Insurance20 Billion
51Shipping Company/ Agent25 Million
52Sports Lottery30 Million
53State Microinsurer100 Million
54Stock Broker 200 Million
55Stock Dealer 100 Million
56Takaful Insurance (General and Family Takaful)200 Million
57Travels/Tours30 Million
58Trustee300 Million
59Underwriter200 Million
60Unit Microinsurer40 Million
61Venture Capital Manager20 Million

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