When registering a company in Nigeria, one term that often confuses founders is minimum share capital. In simple terms, this refers to the least amount of capital a company must declare at incorporation essentially, the value of shares that the founders commit to the business at the start.
Your minimum share capital isn’t necessarily the money you must have in the bank. Rather, it represents your company’s declared financial base, which can influence your ability to:
- Enter certain regulated industries,
- Bid for contracts, or
- Attract investors and institutional partners.
The Corporate Affairs Commission (CAC) sets baseline capital requirements for general companies. However, specific sectors — like banking, insurance, aviation, and fintech — have regulatory capital thresholds imposed by agencies such as the Central Bank of Nigeria (CBN), National Insurance Commission (NAICOM), Securities and Exchange Commission (SEC), and others.
This guide explains, in clear terms, the minimum share capital requirements across major industries in Nigeria, based on the latest CAC and regulatory data.
1. General Business and Limited Companies
For most entrepreneurs, your business will fall under one of these two:
- Private Limited Company (Ltd) — ₦100,000 minimum share capital
- Public Limited Company (Plc) — ₦2 million minimum share capital
These thresholds are governed by the Companies and Allied Matters Act (CAMA 2020) and are suitable for small and medium enterprises (SMEs), consultancies, and trading businesses.
2. Banking and Financial Institutions (Regulated by CBN)
The financial sector has the highest capital thresholds in Nigeria due to its risk exposure and public trust obligations.
Commercial Banks
- Regional Authorization: ₦10 billion
- National Authorization: ₦25 billion
- International Authorization: ₦50 billion
Merchant Bank: ₦15 billion Finance Company: ₦20 million Bureau De Change: ₦35 million Primary Mortgage Institution: ₦2 billion
Non-Interest (Islamic) Banks
- Regional: ₦5 billion
- National: ₦10 billionThese high figures ensure liquidity, financial integrity, and depositor protection, especially under the CBN’s licensing framework.
3. Microfinance Banks
Microfinance institutions play a crucial role in community-level financial inclusion. Their capital thresholds vary by operational scope:
- Unit Microfinance Bank (Tier 2): ₦50 million
- Unit Microfinance Bank (Tier 1): ₦200 million
- State Microfinance Bank: ₦1 billion
- National Microfinance Bank: ₦5 billion
Regulator: Central Bank of Nigeria (CBN)Purpose: To ensure adequate capacity to lend, manage deposits, and maintain stability at different operational levels.
4. Fintech and Payment Service Providers
As Nigeria’s fintech ecosystem expands, the CBN has introduced distinct categories with specific capital requirements.
- Payment Solution Services (PSS): ₦250 million
- Payment Terminal Service Provider (PTSP): ₦100 million
- Payment Solutions Service Provider (PSSP): ₦100 million
- Mobile Money Operator (MMO): ₦2 billion
- Switching and Processing Companies: ₦2 billion
- Payment Service Bank (PSB): ₦5 billion
- Super Agent (Aggregator): ₦50 million
These thresholds promote consumer protection, transaction security, and operational resilience in Nigeria’s fast-growing digital finance sector.
5. Insurance and Reinsurance Companies (Regulated by NAICOM)
The insurance industry protects lives, assets, and investments, hence the strict capital demands to guarantee claims payment ability.
- Insurance Broker: ₦5 million
- Life Insurance: ₦8 billion
- General Insurance: ₦10 billion
- Composite Insurance: ₦18 billion
- Reinsurance Company: ₦20 billion
- Takaful (Islamic Insurance): ₦200 million
Microinsurance Companies
- Unit Microinsurer: ₦40 million
- State Microinsurer: ₦100 million
- National Microinsurer: ₦600 million
- Life Microinsurance: ₦150 million
- General Microinsurance: ₦200 million
Regulator: National Insurance Commission (NAICOM) Purpose: To maintain solvency and ensure insurers can meet their obligations to policyholders.
6. Pension and Asset Management (Regulated by PENCOM and SEC)
- Pension Fund Administrator (PFA): ₦5 billion
- Closed Pension Fund Administrator: ₦500 million
- Pension Fund / Asset Custodian: ₦2 billion
- Asset Management Company: ₦300 million
- Venture Capital Manager: ₦20 million These figures ensure the safety of pension contributions and the credibility of fund managers handling public savings.
7. Capital Market Operators (Regulated by SEC)
Capital market intermediaries require strong capitalization to manage investor funds and maintain market confidence.
- Issuing House: ₦200 million
- Broker/Dealer: ₦300 million
- Trustee: ₦300 million
- Fund/Portfolio Manager: ₦150 million
- Stockbroker: ₦200 million
- Stock Dealer: ₦100 million
- Corporate Investment Adviser: ₦5 million
- Corporate Investment Adviser (Registrar): ₦150 million
- Individual Investment Adviser: ₦2 million
- Market Maker: ₦2 billion
Regulator: Securities and Exchange Commission (SEC)
8. Transport, Aviation, and Maritime Companies
These sectors are capital-intensive, regulated by bodies like NIMASA and the Nigerian Civil Aviation Authority (NCAA).
- Air Transport (International): ₦2 billion
- Air Transport (Regional): ₦1 billion
- Air Transport (Local): ₦500 million
- Ground Handling Services: ₦500 million
- Air Ambulance / Private Jet Services: ₦20 million
- Shipping Company / Agent: ₦25 million
- Cabotage Trade: ₦25 million
- Freight Forwarding: ₦5 million
- Agents of Foreign Airlines: ₦1 million
- Travel / Tours Company: ₦30 million
Purpose: To ensure safety standards, service reliability, and risk management in passenger and cargo movement.
9. Health and Social Services
- Health Maintenance Organization (HMO) — National: ₦400 million (paid-up)
- HMO — Regional: ₦200 million (paid-up)
- HMO — State: ₦100 million (paid-up)
Regulator: National Health Insurance Authority (NHIA) Purpose: To guarantee healthcare service quality and financial sustainability for enrollees.
10. Other Specialized and Regulated Sectors
- Private Security Company / Consultant: ₦10 million
- Agricultural Seed Production / Processing: ₦10 million
- Lottery Company: ₦5 million
- Sports Lottery Company: ₦30 million
11. Foreign-Owned or Foreign-Participating Companies (CAC Requirement)
Minimum Share Capital: ₦100 million
This requirement applies to companies with foreign shareholders or ownership participation. It ensures that foreign investors demonstrate a reasonable financial commitment and capacity before operating in Nigeria.
Regulator: Corporate Affairs Commission (CAC)Purpose: To strengthen corporate governance, promote investor responsibility, and align with Nigeria’s Business Facilitation (Ease of Doing Business) Act.
In conclusion, knowing your minimum share capital before incorporation saves time, prevents rejections, and helps you plan funding efficiently. Whether you’re launching a fintech, insurance firm, or logistics business, compliance begins with capital.
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Disclaimer:
This article is for informational purposes only and does not constitute legal or financial advice. Always confirm updated figures with the CAC or relevant regulator before incorporation.