HOW TO START AN OIL AND GAS BUSINESS IN NIGERIA

The oil and gas industry is fast growing to its next level with the advent of CNG in Nigeria. The oil and gas industry is contributing significantly to the country’s GDP and providing various business opportunities for both young and old and foreigners as well.

Before starting a business in the oil and gas sector, one needs to have an indebt knowledge and a deeper understanding of the requirements and Nigeria’s regulatory framework. and more so the investor needs to obtain the necessary licenses and permits.

Read: Company Registration (Limited Liability Company) 2024

In this blog, we are going to list the basic registrations and licenses you need to get If you are planning to establish an oil and gas company in Nigeria.

Read: FOREIGN INVESTMENT IN NIGERIA

Registration of the Business

1. Every business in Nigeria must be registered with the Corporate Affairs Commission (CAC). The CAC is responsible for overseeing business registration and ensuring that companies operate legally. With One Million (1m) Share capital you can conveniently register your Limited Liability Company with CAC as an indigenous company. As a foreign company desirous of setting up a company in Nigeria, the minimum share is One Hundred Million (100m)
2. Businesses with foreign ownership, needs to register with the National Investment Promotion Commission (NIPC)is mandatory. The NIPC promotes and regulates foreign investment in Nigeria and ensures that foreign investors comply with Nigerian laws and regulations. This registration is required before commencing business operations in Nigeria.
3. The oil and gas company must be registered with the Federal Inland Revenue Service (FIRS)to obtain a Tax Identification Number (TIN) this will be used to open a corporate account for the company. You will also need to obtain a Tax Clearance Certificate (TCC), which verifies that your business is up to date with tax payments. The TCC is required for several transactions, including obtaining permits in the oil and gas industry.
4. The Oil and gas companies are required to register with the Nigerian Social Insurance Trust Fund (NSITF), which ensures that businesses contribute to their employees’ welfare in the event of work-related accidents or injuries. This registration is also a prerequisite for obtaining a Department of Petroleum Resources (DPR)permit, which is necessary to operate in the sector.

Read also: DPR PERMITS

5.Obtain Permits and Licenses To operate legally in Nigeria’s oil and gas sector, your business must obtain the necessary permits and            licenses from the appropriate regulatory bodies.

In conclusion, oil and gas business is a booming one. To get into oil and business one need to register and get the licenses required.

For more enquiry

Email: info@verazadvocates.com.ng