Minister of Trade and Investment, Mr. Olusegun Aganga
The Federal Government has slashed the costs of registering businesses in Nigeria by half, in a bid to encourage investment in the country.
The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said this on Tuesday in Abuja during the signing of a Memorandum of Understanding between his ministry and Brazil’s Ministry of Development, Industry and Foreign Trade on the promotion of trade and investment.
A 19-man Brazilian delegation was led on the visit by the country’s Deputy Minister of Development, Industry and Foreign Trade, Mr. Richardo Schaefer.
Aganga said the Corporate Affairs Commission had, since October 1, 2013, reduced capital registration costs by 50 per cent for equity registration of N500m or lower, and by 25 per cent for equity registration above N500m.
He explained that the initiative was in line with the ministry’s investment climate reform programme, which was aimed at strategically repositioning Nigeria as the preferred destination for both local and foreign investments.
He said, “Following the directive from the President, the CAC has since October 1, 2013, slashed fees for business registration by 50 per cent. Under the new regulations, capital registration fees for companies (under Part A) have been reduced across board.
“While capital registrations below N1m will retain a flat fee of N10,000; all registrations between N1m and N500m are reduced by 50 per cent; and all registrations above N500m are reduced by 25 per cent.”
The minister said by this action, Nigerian companies would save over N2bn per annum, which they could use to hire more workers and expand their businesses.
He said that the new regulation had been deliberately designed to ensure that the bulk of these savings went to smaller businesses, which needed the lower fees more.
Aganga expressed optimism about the likely impact of the MoU, which the Brazilian deputy minister led a 19-man delegation to sign in Abuja.
According to him, the MoU will make it possible for various agencies responsible for skills development, industry and development finance in both countries to work together and deliver better services for the citizens of their respective countries.
He said, “The aim of the MoU is to strengthen the economic cooperation between the two countries at the bilateral and multilateral levels; increase and promote the bilateral trade of strategic items of mutual interest, and support cooperation between institutions of both countries.”