The verdict in three sentences
Formalisation is not red tape: it is the key that unlocks a merchant mobile money account and its reduced fees. In Nigeria, the CAC (Corporate Affairs Commission) registers a Limited company in about 5 working days for roughly 30 000 NGN. Without a registered entity and TIN, no operator opens a genuine business payment account in your name.
The concrete steps at the CAC
The CAC centralises company registration in Nigeria through its online portal, with an increasingly digital 2026 process. Here is the standard path for a private Limited company.
| Step | Content | Indicative time |
|---|---|---|
| 1. Name reservation | Availability check on the CAC portal | Immediate online |
| 2. File submission | Memorandum, ID, address proof | 1 day |
| 3. Incorporation | Certificate of incorporation issued | 2-4 days |
| 4. TIN allocation | Tax Identification Number (FIRS) | Included |
| 5. Statutory filings | Where staff are employed | 1-2 days |
| 6. Document collection | Certificate + status documents | 5 days total |
Real cost and regional comparison
The headline CAC fee is modest, but you must add ancillary costs. Here is a 2026 order of magnitude, compared with Senegal.
| Item | Sole proprietor | Limited company |
|---|---|---|
| CAC / registry fees | ~10 000 NGN | ~30 000 NGN |
| Minimum capital | None | Nominal share capital |
| Optional agent fee | 0 | 0 to 50 000 NGN |
| Total time | 2-3 days | ~5 days |
| Senegal comparison (APIX) | ~10 000 FCFA | ~48-72 h |
In Senegal, APIX registers an SARL in 48 to 72 hours for around 50 000 FCFA: faster and cheaper, with a single NINEA tax number. Nigeria's CAC is more standardised but slower.
Become a Kolonell referral partner
Many entrepreneurs you meet at registration time need a showcase site, an e-commerce store or a merchant account connected to their website. That is exactly where the Kolonell referral (apporteur d'affaires) programme earns you money.
| Track | Sale commission | Recurring |
|---|---|---|
| Showcase site | 15 % | + 5 % / month |
| E-commerce | 12 % | - |
| Marketplace | 10 % | - |
| Institutional | 8 % | - |
A single Growth showcase site at 500 000 FCFA earns you 75 000 FCFA upfront, plus 5 % on monthly maintenance. You bring the contact, Kolonell delivers the project.
Mini case study
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Chidi, an HR consultant in Lagos, wants to invoice clients through a merchant account. He registers a Limited with the CAC: about 30 000 NGN in fees. Within 5 days he has his certificate and TIN and opens a business payment account with a 1.5 % merchant rate instead of 2.5 % personal. On a monthly turnover of 2 000 000 NGN collected digitally, the fee saving is (2.5 % - 1.5 %) x 2 000 000 = 20 000 NGN per month, or 240 000 NGN/year: the registration cost is recovered in under two months.
FAQ
What minimum capital does a Nigerian Limited need in 2026?
A private Limited requires a nominal minimum share capital declared at incorporation. The amount stays available to the company and funds its activity.
Do I need an agent to register?
No, the CAC portal lets you file directly. An accredited agent (around 50 000 NGN) only saves time on complex structures or multiple directors.
How long does the TIN take?
The TIN is issued as part of incorporation, usually within the same 5-day window. It is essential to invoice and open a merchant account.
Can I open a merchant payment account without a registered company?
No. Business payment accounts require a registration certificate and TIN. This is exactly why formalisation is the first step of any serious e-commerce project.
How much cheaper is a sole proprietorship?
Expect around 10 000 NGN and 2-3 days, with no share capital. It suits freelancers, but a Limited better protects personal assets.
Let's talk about your project. Registration, merchant account or a site connected to payments: we handle it end to end, and you can also become a referral partner. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
