Running a business in Nigeria can be rewarding, but one of the toughest hurdles entrepreneurs face is multiple taxation. From federal levies to state and local government demands, businesses often struggle with overlapping taxes and charges that reduce profits and discourage growth. Fortunately, with the right strategies, these challenges can be managed effectively. 1. Understand…
Tax Compliance in Nigeria Tax administration in Nigeria is handled by: Federal Inland Revenue Service (FIRS) – handles federal taxes (company income tax, VAT, etc.). State Internal Revenue Service (SIRS) – handles personal income tax (for sole proprietors and employees). Taxes You May Need to Pay: Apply for a TIN (free) from FIRS. Required for…
Business Formalization in Nigeria In Nigeria, the body in charge of registering businesses is the Corporate Affairs Commission (CAC). Steps to Formalize Your Business: Business Name (BN) – for small businesses, sole proprietors, and partnerships. Limited Liability Company (LLC / LTD) – protects your personal assets, suitable for growing companies. Incorporated Trustee (NGO/Non-profit) – for…
Financial analysis helps investors evaluate the value, performance, and risks of an investment before committing money. It goes beyond surface-level numbers to reveal a company’s true financial health. By analyzing revenue growth, profit margins, and cash flow, investors can determine if a company is financially strong enough to deliver good returns. Example: Comparing two companies…
