ARTICLES

Business Permit and Licensing Fees Explained

Running a business in Nigeria goes beyond registration with the Corporate Affairs Commission. After setting up a company, you must obtain the right permits and licenses to operate legally within your industry and location. Failure to comply leads to fines, business closure, account restrictions, or legal action by authorities.

Many entrepreneurs overlook permits because they think only large companies need them. The truth is that even small businesses, startups, shops, and online brands need some level of licensing depending on the sector and location. This article explains the different types of business permits and licensing fees in Nigeria, how to get them, who needs them, and the cost implications.

What is a Business Permit?

A business permit is an authorization granted by a government agency or regulatory body that allows a company to operate within a specific sector. Some permits apply nationwide, while others are based on the state or local government where the business is located. Permits help the government monitor activities, maintain safety standards, regulate taxes, and control illegal operations.

Permits and Licenses

Operating without the required permits can affect a business in many ways:

Difficulty opening corporate bank accounts
Disqualification from contracts and tenders
eizure of goods or closure of premises
Penalties or legal summons
Loss of investor confidence
Denial of government grants and loans

A properly licensed business is also seen as trustworthy by customers and corporate partners.

Types of Business Permits and Licenses in Nigeria

Different sectors require different forms of authorization. Below are major permit types and what they apply to.

1. Business Premises Permit

This is issued by state governments and required for physical business locations, shops, factories, and offices. Each state has its own fees and renewal structure. Examples include:

Lagos State Business Premises Permit
Abuja Business Premises Registration
Kano State Business Premises License

Fees depend on the location, size of the business, and whether it is a new or existing building.

2. Local Government Trade Permit

Businesses operating within a local council area need a trade license or operational permit. It applies to shops, restaurants, salons, kiosks, hotels, and retail outlets. Renewal is usually done yearly.

3. NAFDAC Registration

Businesses involved in the production, importation, packaging, or sale of consumable items need NAFDAC approval. This applies to:

Packaged food and snacks
Bottled and sachet water
Drugs and supplements
Cosmetics and beauty products
Beverages and herbal mixtures

There are separate fees for inspection, laboratory testing, labeling approval, and certification.

4. SON Certification

The Standards Organisation of Nigeria issues certifications for products that require quality compliance before being sold in the market. This is common in manufacturing and importation. SON fees depend on product type and volume.

5. CBN and Finance-Related Licensing

Fintechs, microfinance banks, and money service companies must obtain approval from the Central Bank of Nigeria. Categories include:

Mobile money operators
Microfinance institutions
Payment service providers
Bureau de change
Digital lending platforms

Application and renewal fees are higher than standard licenses.

6. NCC Licensing

Telecommunications and digital communication companies need permits from the Nigerian Communications Commission. This includes:

Internet service providers
Telecom infrastructure firms
Call center operators
VoIP services
Mobile app platforms offering communication features

7. Health and Safety Permits

Businesses in health, hospitality, construction, transportation, and production may require safety certifications from relevant agencies or state health departments.

8. Import and Export License

Companies that export agricultural produce, finished goods, or raw materials need an export license from the Nigerian Export Promotion Council. Importers also need permits depending on product category.