Nigeria Country Profile

Snapshot of the Nigeria Country Profile


Nigeria is the most populous nation in Africa and offers investors abundant natural resources, a low-cost labour pool, and a potentially large domestic market. For many years, Nigeria has had a reputation for being among the most corrupt countries in the world, but the problem has received increasing national and international attention in recent years. Although measures have been taken against both public and private corruption, several business surveys indicate that petty corruption is still widespread and constitutes a major obstacle for companies operating in Nigeria.

Positive developments in relation to corruption and investment:

  • Nigeria has established the Nigeria Extractive Industries Transparency Initiative (NEITI), aimed at improving transparency in payments between extractive industrial companies and government entities, as well as to provide legal instruments to fight for increased transparency in the oil, gas and mining sectors in Nigeria.
  • The government has set up several investment portals providing oversight and information on investment requirements and business registration procedures (see the section 'Regulatory Environment' under General Information).
  • Progress has been made regarding public procurement procedures, although corruption persists. Guidelines have clarified procedures, public tenders are now publicly advertised, and observers note that foreign companies are increasingly treated as national companies.

Risks of corruption:

  • Petty corruption is reportedly widespread and surveys indicate that it is very hard to do business in Nigeria without having to pay facilitation payments to public officials.
  • State agencies tend to impose fees, licences, fines, and taxes arbitrarily. Some companies even report that they avoid posting signs identifying their factories, claiming that to do so would be an invitation to corrupt officials to stop by and solicit bribes.
  • Companies should note that property rights, contracts and commercial disputes can be difficult to enforce and settle in Nigerian courts due to corruption, inefficiency and under-staffing.
  • Tax administration lacks transparency which has led to high levels of tax evasion or tax officials demanding facilitation payments in return for lower tax rates. This practice is reportedly declining, but it still occurs.