In a sweeping regulatory enforcement move, Nigeria’s Corporate Affairs Commission (CAC) has issued a strict six-week ultimatum—effective immediately—mandating all business entities operating anywhere in Nigeria to fully comply with registration requirements under the Companies and Allied Matters Act (CAMA) 2020. The decisive directive, announced via an official circular signed by the Registrar-General and published across all CAC offices nationwide, targets both formal and informal enterprises—from multinational corporations to roadside vendors—requiring them to regularize their legal status or risk severe penalties, including criminal prosecution, daily fines, and potential business shutdowns.
This unprecedented enforcement push specifically cracks down on three major violations:
1️⃣ Unregistered businesses operating without CAC certification
2️⃣ Registered entities using trading names different from their legally documented titles
3️⃣ Non-display of registration details on storefronts and official documents
The Commission’s move follows alarming findings that over 60% of Nigeria’s 40 million businesses remain unregistered, depriving the government of vital tax revenues while creating an uneven playing field for compliant enterprises.
Key Legal Provisions Activated:
Section 863 – Criminalizes unregistered business operations
Section 729 – Mandates visible display of registration details
Section 862(1) – Prescribes 2-year jail terms for false documentation
With the deadline set for [exact date], the CAC has mobilized special compliance task forces across all 36 states to conduct spot-checks, warning that “no exceptions will be made” for defaulters once enforcement begins.
Why This Crackdown Matters Now:
✅ Revenue Drive: Aligns with FG’s push to expand tax base
✅ Investor Confidence: Strengthens Nigeria’s corporate governance reputation
✅ SME Protection: Levels playing field against unregistered competitors
✅ Data Accuracy: Updates national business database for economic planning
Next Steps for Businesses:
- Verify Status: Check CAC database for registration validity
- Correct Discrepancies: Align operating names with legal registration
- Display Details: Post registration certificates visibly at all business locations
- Renewals: Update expired licenses before deadline
