How an American Can Register/Incorporate a Company and Open a Bank Account in Nigeria from the USA (Cost & Requirements)

Nigeria has become a strategic investment destination for American entrepreneurs looking to expand their reach into Africa’s fast-growing economy. Whether your focus is oil and gas, technology, agriculture, or real estate, registering a company and opening a bank account in Nigeria can be done 100% remotely from the United States, thanks to Nigeria’s digitalized incorporation system.

This comprehensive guide breaks down the process step by step, explains legal requirements, highlights costs, and addresses key compliance obligations, so you can navigate Nigeria’s business landscape efficiently and legally.

Table of Contents

• Introduction

• Why U.S. Businesses Are Expanding into Nigeria

• Legal Business Structures for American Investors

• Step-by-Step: Incorporation and Bank Account Opening

• Required Documents and Information

• Incorporation via CAC’s AI-Powered Portal

• Post-Incorporation Compliance

• Banking Rules for Foreign Shareholders

• Immigration Requirements for Foreign Directors

• SCUML Certificate and Its Importance

• Estimated Cost and Timeline

• Common Misconceptions & Mistakes to Avoid

• FAQs

• Conclusion

1. Introduction

Nigeria, with a population exceeding 200 million and a GDP above $450 billion, is Africa’s largest economy and one of the continent’s biggest consumer markets.

In recent years, U.S.–Nigeria trade has grown beyond $10 billion annually, with American firms dominating in sectors such as energy, fintech, agriculture, and education. Now, small and mid-size American businesses are joining in the process of incorporating locally to tap into the same opportunities that larger corporations have leveraged for decades.

Today, you can register a Nigerian company entirely online using the Corporate Affairs Commission (CAC)’s AI-driven registration portal, without mailing physical documents or being physically present in Nigeria.

2. Why U.S. Businesses Are Expanding into Nigeria

• Large and youthful market: Over 200 million people with a median age under 20.

• Regional gateway: Nigeria gives investors access to the ECOWAS sub-region (15 countries).

• English-speaking environment: Business and legal documents are in English, reducing translation barriers.

• Improved digital infrastructure: CAC, FIRS, and banking systems are now online.

• Legal framework modeled on the UK system: Familiar to U.S. companies and straightforward to navigate.

3. Legal Business Structures for American Investors

The most suitable structure for U.S. investors is a Private Limited Liability Company (Ltd/LLC).

Why this structure works best:

• It’s recognized globally and similar to an American LLC.

• It offers limited liability protection to shareholders.

• It allows 100% foreign ownership.

• It’s flexible for joint ventures, subsidiaries, or stand-alone companies.

Other forms such as business names or partnerships exist, but foreign investors generally prefer limited liability companies because of their formal legal standing and access to corporate banking and tax benefits.

4. Step-by-Step: Incorporation and Bank Account Opening

Here’s how an American entrepreneur can incorporate a Nigerian company and open a business bank account from the United States:

1. Choose Company Names – Provide two name options for search and reservation.

2. Provide Details of Shareholders and Directors – Include names, addresses, nationality, email, and ID.

3. Determine Shareholding Structure – Define ownership percentages.

4. Upload Required Documents – IDs, signatures, and proof of address.

5. Complete Online Submission – Use the CAC AI-powered platform to file all details.

6. Obtain a Digital Certificate of Incorporation – Issued online; no physical pickup required.

7. Apply for Tax Identification Number (TIN) – Essential for tax registration.

8. Secure SCUML Certificate – Required for bank account opening.

9. Appoint Local Directors (Temporarily) – Helps facilitate banking until you secure Nigerian residency.

10. Open a Corporate Bank Account – Once compliance steps are complete.

5. Required Documents and Information

Below is the checklist for all documentation and data needed for registration and banking:

6. Incorporation via CAC’s AI-Powered Portal

The CAC’s transformation into a fully digital registry now makes it one of the most efficient systems in Africa.

Steps on the CAC Platform:

1. Name Search & Reservation – Choose and reserve your business name online.

2. Fill Company Details – Enter director/shareholder data.

3. Upload Documents – Scanned IDs, signatures, and proof of address.

4. Pay Online – All payments are made securely through the CAC portal.

5. AI Validation – The system automatically checks compliance.

6. Certificate Issued Digitally – Incorporation certificates are now electronic only.

7. Download Incorporation Documents –  Certificate, Status Report and Memorandum & Articles of Association are accessible instantly.

This entire process can be completed from your laptop in the U.S.—no mailing, couriering, or in-person verification required.

7. Post-Incorporation Compliance

After incorporation, you’ll need to:

• Obtain a TIN from the Federal Inland Revenue Service.

• Register for SCUML (Special Control Unit Against Money Laundering).

• File Annual Returns with the CAC.

• Pay mandatory taxes such as Company Income Tax and VAT.

• Maintain proper accounting and statutory records.

8. Banking Rules for Foreign Shareholders

While an American can be both shareholder and director of a Nigerian company, operational challenges arise without a Nigerian residency permit (CERPAC).

You’ll need a Bank Verification Number (BVN) and National Identification Number (NIN) to activate a company bank account, and these require a residency permit.

Until then, most foreign investors appoint Nigerian directors who can manage the bank account locally while the American remains the principal shareholder. Once you relocate to Nigeria officially, you can assume directorship in the Company. Control of the Account can be achieved via Internet banking, with the Directors no longer have any form of control.

9. Immigration Requirements for Foreign Directors

If an American investor wishes to work or act as a company director in Nigeria, the following immigration processes apply:

• Expatriate Quota: Authorization from the Ministry of Interior to employ foreigners.

• STR Visa (Subject to Regularization): Issued by the Nigerian consulate in the U.S. for foreign employees or directors.

• CERPAC Card: Nigerian residency permit required to obtain BVN and NIN for banking and compliance.

Until these are completed, Americans should act as shareholders, while Nigerian directors handle compliance matters.

10. SCUML Certificate and Its Importance

The Special Control Unit Against Money Laundering (SCUML) certificate is mandatory for corporate account opening in most sectors.

• Issued by: EFCC (Economic and Financial Crimes Commission)

• Processing time: 5–7 working days

• Purpose: Confirms that your company meets anti-money-laundering regulations

Most banks won’t proceed with account opening without this certificate, even for low-risk businesses.

11. Estimated Cost and Timeline

✅ Total Package: $2,650
⏱️ Total Timeline: About 35 working days (approx. 5–6 weeks)

12. Common Misconceptions & Mistakes to Avoid

13. FAQs

Q1. Can an American register a Nigerian company remotely?
Yes. The CAC portal allows complete online registration from anywhere in the world.

Q2. Can foreigners be directors?
Yes. However, operating a bank account requires residency (CERPAC), BVN, and NIN.

Q3. Can U.S. citizens own 100% of a Nigerian company?
Absolutely. Nigeria allows 100% foreign ownership of limited liability companies.

Q4. How long does the process take?
About 35 working days from incorporation to bank account activation.

Q5. Do I need to visit Nigeria?
Not initially. Local directors can act on your behalf until you relocate officially.

14. Conclusion

For American entrepreneurs, Nigeria represents a frontier market with exponential potential. With the new AI-driven CAC system, U.S. investors can incorporate a company online, obtain a digital certificate, and set up banking—all without leaving the United States.

However, to operate efficiently, remember these key points:

• You may be the sole shareholder and director, but without residency (CERPAC), you cannot complete BVN/NIN registration or manage banking independently.

• It’s best to appoint temporary Nigerian directors to handle initial operations.

• Secure your Expatriate Quota, STR Visa, and CERPAC before taking an active role locally.

• Expect about $2,650 in total costs and 5–6 weeks for completion.

With the right structure and expert guidance, incorporating in Nigeria from the USA can open your business to one of Africa’s most promising and profitable markets.