Fractional CFO services in Nigeria

Bank of Industry and NSIA

Bank of Industry (BOI) provides subsidised lending and equity participation for Nigerian SMEs and innovative companies. NSIA (Nigeria Sovereign Investment Authority) operates a Direct Investment vehicle. Together they anchor public-sector capital alongside specific ministerial programmes.

NCDMB and sector-specific funds

Various sector-specific funds (Nigerian Content Development and Monitoring Board, Bank of Agriculture, NACCIMA programmes) provide non-VC capital for qualifying Nigerian businesses. Worth checking sector eligibility.

Nigerian VC ecosystem

Active funds include Ventures Platform, Future Africa, TLcom Capital, Norrsken22, Microtraction, EchoVC and Greenhouse Capital. Cross-border participation from US, European and pan-African investors heavy at growth stage.

Lagos angel ecosystem

Nigeria has the most active angel scene in Sub-Saharan Africa by deal count. Flutterwave, Paystack, Andela, Kuda, Piggyvest, Carbon and other Nigerian tech alumni anchor the angel community. Lagos Angel Network and dedicated networks coordinate structured angel investment.

Pioneer Status incentive

Nigerian Pioneer Status (administered by NIPC) grants 3-year corporate tax holidays (extendable by 2 years) to qualifying companies in pioneer industries (software, ICT, manufacturing). Material non-dilutive incentive for qualifying Nigerian tech companies.

Venture debt

Nigerian venture debt is limited but emerging. Cross-border providers (Lendable, Cauris, Partners for Growth) operate via Africa-focused lending arms. Local banks (Zenith, GTBank, Access, FBN) provide standard SME working capital.

Standard stock options

Nigerian stock options are typically taxed at exercise as employment income at marginal rates (up to 24% PIT). Nigerian tax mechanics combined with FX controls make pure-domestic options unusually difficult; most venture-backed Nigerian startups avoid this route.

Offshore (Delaware) ESOPs

Most venture-backed Nigerian startups operate via a Delaware (or Mauritius) holding parent over Nigerian operating subsidiaries. ESOPs at the offshore parent benefit from cleaner cap-table mechanics; Nigerian-resident employees still face Nigerian tax on exercise under source rules.

Phantom shares and SARs

Cash-settled equity-like instruments are widely used in Nigerian startups. The holder receives a cash bonus equal to the value of a notional option at exit. Taxed as employment income at payout.

Restricted Stock Units (RSUs)

Used at later-stage Nigerian companies, particularly Delaware-parent structures with US investors. Taxed as employment income at vesting at marginal rates for Nigerian-resident employees.

Option valuation

Nigerian startups typically peg option strike values to the price of the most recent priced round (often in USD via the offshore parent). Independent valuations support the FIRS (Federal Inland Revenue Service) position on fair market value.

Reporting and FIRS

Option exercises flow through Nigerian payroll for PAYE and pension contributions. Annual employer reporting required. Worth aligning between cap-table tool, Nigerian payroll provider and tax advisor - particularly given cross-border source rules.

Accounting

• •Zoho Books - common at Nigerian SMEs.
• •Sage - established alternative widely used at Nigerian accounting firms.
• •QuickBooks Online - for internationally-facing Nigerian companies.
• •NetSuite - for late-stage companies needing multi-entity consolidation.

Payroll

• •Local Nigerian payroll providers (SeamlessHR, PaidHR) - common at SMEs and growth-stage companies.
• •Zoho People - alternative with strong African coverage.
• •Deel or Remote - for hiring contractors and staff outside Nigeria (very common given FX considerations).

Business banking

• •Zenith Bank, GTBank, Access Bank or First Bank - for treasury, FX and traditional debt facilities.
• •Stanbic IBTC - alternative with strong corporate coverage.
• •Mercury - for Nigerian founders with a US C-corp parent (very common given FX considerations).
• •Wise Business - for multi-currency operations.

Cap table & equity admin

• •Carta - dominant for Nigerian venture-backed companies (typically with Delaware parent).
• •Pulley - strong alternative.
• •Ledgy - alternative with cross-border coverage.

Expenses & corporate cards

• •Brex or Ramp - for Nigerian founders with US C-corp parent.
• •Bento Africa - African-built spend management platform.
• •Pluto - alternative African card platform.