The breakdown of CAC Share Capital Threshold for Company Registration in Nigeria.

Company registration in Nigeria in certain industries and economic sectors are govern by statues and other regulations in force that stipulate a minimum share capital threshold before a company can be successfully registered in Nigeria and commence business operation.

Having substantial share capital indicates that the company is viable, can raise additional funds if required, instill confidence in potential investors and lenders as many of these industries are highly regulated and require the investment of large sums of money.

The list below are various industries and their required minimum share capital before they can be successfully registered with Corporate Affairs Commission (CAC) in Nigeria. 

However, it should be noted that the minimum share capital threshold for company registration in Nigeria with foreign participation is N100 million Naira. A person seeking to set up a business in Nigeria may seek experienced corporate law experts’ guide on how to successfully register a company in Nigeria.  

SN	TYPE OF COMPANY	MINIMUM SHARE CAPITAL (N)	JUSTIFICATION
1	ISSUING HOUSE	200 Million	Securities and Exchange Commission Guidelines on New Minimum Share Capital for Market Operators
2	BROKER/DEALER	300Million
3	TRUSTEE	300 Million
4	FUND/PORTFOLIO MANAGER	150 Million
5	STOCK BROKER	200 Million
6	STOCK DEALER	100 Million
7	CORPORATE INVESTMENT ADVISER (REGISTRAR)	150 Million
8	CORPORATE INVESTMENT ADVISER	5 Million
9	INDIVIDUAL INVESTMENT ADVISER	2 Million
10	MARKET MAKER	2 Billion
11	CONSULTANT (PARTNERSHIP)	2 Million
12	CONSULTANT (INDIVIDUAL)	500,000
13	CONSULTANT (CORPORATE)	5 Million
14	UNDERWRITER	200 Million
15	VENTURE CAPITAL MANAGER	20 Million
16	COMMODITIES BROKER	40 Million
17	CAPITAL TRADE POINT	20 Million
18	RATING AGENCY	150 Million
19	CORPORATE/SUB BROKER	5 Million
20	ASSET MANAGEMENT (INTANGIBLE ASSETS)	300 Million
21	COMMERCIAL BANK WITH REGIONAL AUTHORIZATION	10 Billion	CBN Scope and Standards Commercial Regulations 2020
22	COMMERCIAL BANK WITH NATIONAL AUTHORIZATION	25 Billion
23	COMMERCIAL BANK WITH INTERNATIONAL AUTHORIZATION	50 Billion
24	MERCHANT BANK	15 Billion	CBN Scope, Condition and Minimum Standard for Merchant Banks Regulation 2, 2010
25	PAYMENT SOLUTION SERVICES (PSS) (As permissible under Super Agent, PTS and PSSP (combined))	250 Million	CBN Guidelines on licensing Framework/ Categorization for the Nigerian Payment System 2020
26	SUPER AGENT (Agent Recruitment Management and other activities as specified in the Regulatory Framework for Licensing Super Agents in Nigeria	50 Million
27	PAYMENT TERMINAL SERVICE PROVIDER (PTSP) (POS Terminal Deployment and Services, POS Terminal Ownership, PTAD, Merchant/Agent Training and Support)	100 Million
28	PAYMENT SOLUTIONS SERVICE PROVIDER (PSSP) (Payment Processing Gateway and Portal, Payment Solution/Application Development, Merchant Service Aggregation and Collection)	100 Million
29	MOBILE MONEY OPERATION (E-Money Issuing, Wallet Creation and Management, Pool Account Management activities as permissible under Super Agent)	2 Billion
30	SWITCHING AND PROCESSING (Switching, Card Processing Transaction, Clearing and Settlement Agent Services, Non-bank Acquiring Services activities as permissible under Super Agent, PTSP and PSSP)	2 Billion
31	UNIT MICRO FINANCE BANK (TIER 1)	Tier 1: 200 Million	CBN Regulations
32	UNIT MICRO FINANCE BANK (TIER 2)	Tier 2: 50 Million
33	MICRO FINANCE BANK (STATE & FCT)	1 Billion
34	MICRO FINANCE BANK (NATIONAL)	5 Billion
35	PRIMARY MORTGAGE INSTITUTION	2 Billion
36	FINANCE COMPANY	20 Million
37	BUREAU DE CHANGE	35 Million
38	NON-INTEREST BANK (REGIONAL)	5 Billion
39	NON INTEREST BANK (NATIONAL)	10 Billion
40	INSURANCE BROKER	5 Million	Nigerian Council of Registered Insurance Brokers Act, 2003
41	LIFE INSURANCE	8 Billion	National Insurance Commission Revised Regulations 2019
42	GENERAL INSURANCE	10 Billion
43	COMPOSITE INSURANCE	18 Billion
42	GENERAL INSURANCE	10 Billion
43	COMPOSITE INSURANCE	18 Billion
44	RE-INSURANCE	20 Billion
45	UNIT MICROINSURER	40 Million	Guidelines for Micro-insurance Operation in Nigeria 2018
46	STATE MICROINSURER	100 Million	Guidelines for Microinsurance Operation in Nigeria 2018
47	NATIONAL MICROINSURER	600 Million	Guidelines for Microinsurance Operation in Nigeria 2018
48	TAKAFUL INSURANCE (GENERAL AND FAMILY TAKAFUL)	200 Million	National Insurance Commission Regulations
49	PRIVATE SECURITY COMPANY/CONSULTANT	10 Million	Guideline on Requirements for Registration of Private Guard Security Companies made Pursuant to Nigerian Security and Civil Defence Corp Act No. 2 of 2003
50	PENSION FUND/ASSET CUSTODIAN	2 Billion	National Pensions Commission Requirements for Licensing of Pension Fund Custodians (FEB 2005); National Pensions Commission Revised Minimum Share Capital Requirement for Licensed Pension Fund Administrators (April 2021);
51	CLOSED PENSION FUND	500 Million
52	PENSION FUND ADMINISTRATOR	5 Billion
53	LOTTERY	5 Million	Section 2 (1), National Lotteries (Amendment) Regulation, 2007
54	SPORTS LOTTERY	30 Million	National Lottery Commission Circular
55	AIR TRANSPORT (INTERNATIONAL)	2 Billion	Nigerian Civil Aviation Authority
56	AIR TRANSPORT (REGIONAL)	1 Billion
57	AIR TRANSPORT (LOCAL)	500 Million
58	AIR AMBULANCE/FUMIGATION/ PRIVATE JET	20 Million
59	AVIATION (GROUND HANDLING SERVICES)	500 Million
60	AVIATION (AIR TRANSPORT TRAINING INSTITUTIONS)	2 Million
61	AGENTS OF FOREIGN AIRLINES	1 Million
62	TRAVEL/TOURS	30 Million	International Air Travel Agency (IATA)
63	AGRICULTURAL SEEDS, PRODUCTIONS, PROCESSING, MARKETING	10 Million	NASA Cap 5, LFN, 2004
64	SHIPPING COMPANY/AGENT	25 Million	NIMASA Guidelines for Registration
65	CABOTAGE TRADE	25 Million
66	LIFE MICRO-INSURANCE	150 Million	Guideline for Micro-Finance Operations in Nigeria (NAICOM), December, 2013
67	GENERAL MICRO-INSURANCE	200 Million	Guideline for Micro-Finance Operations in Nigeria (NAICOM), December, 2013
68	FREIGTH FORWARDING	5 Million	Registration of Freight Forwarding Regulation 2010
69	PAYMENT SERVICE BANK	5 Billion
70	HEALTH MAINTENANCE ORGANIZATION (HMO)(NATIONAL)	400 Million (Paid up)	National Health Insurance Scheme HMO Accreditation Guidelines
71	HEALTH MAINTENANCE ORGANIZATION (HMO)(REGIONAL)	200 Million(Paid up)
72	HEALTH MAINTENANCE ORGANIZATION (HMO)(STATE)	100 Million (Paid up)

Note: The content of this article is anticipated to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance.

By Adeola Oyinlade & Co.

Adeola Oyinlade & Co.; a leading full-service law firm in Nigeria provides help and offers advisory to both local and foreign clients on company registration, corporate and commercial law in Nigeria. 

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