The Federal Government has cut business registration fees in Nigeria by 50 per cent to encourage investors to invest in the country.
The Minister of Industry, Trade and Investment, Dr. Olusegun Aganga, said this in a statement issued on Tuesday in Abuja by Mrs. Yemi Kolapo, his Special Assistant on communications.
It explained that the Corporate Affairs Commission (CAC) had reduced the fees for equity registration by 50 per cent for equities of N500 million or lower.
According to the statement, the commission also reduced the fees by 25 per cent for equity registrations from N500 million and above.
The statement explained that the rationale behind the reduction of business registration fees was to increase investment inflow into the country.
It said that the initiative was in line with the ministry’s investment climate reform programme aimed at strategically repositioning Nigeria as preferred destination for both local and foreign investments.
“Following the directive from the President, the Corporate Affairs Commission has since October 1, 2013, slashed fees for business registration by 50 per cent,” Tuesday’s statement read in part.
“Under the new regulations, capital registration fees for Companies (under Part A) have been reduced across board, while capital registrations below one million naira will retain a flat fee of N10,000,” the statement added.
“All registrations between one million naira and N500 million are reduced by 50 per cent and all registrations above N500 million are reduced by 25 per cent,” it stated.
According to the statement, the review of the registration fees will enable Nigerian companies to save more than N2 billion per annum, which can be used to sustain their businesses, hire more staff and expand operations.
It added that the new regulation had been deliberately set up to ensure the bulk of these savings would go to smaller businesses to strengthen them.