The Corporate Affairs Commission (CAC) has announced a comprehensive initiative aimed at enhancing its compliance and enforcement capabilities, with a particular emphasis on formalising businesses and improving post-incorporation compliance.
The announcement was made by the Registrar-General of CAC, Hussaini Magaji, during an in-house training session for state offices held in Abuja on Monday.
Themed “Re-engineering the Commission for Compliance and Enforcement Mandates,” the training aims to equip CAC personnel with the necessary skills to manage corporate entities more effectively.
Magaji underscored the need for a paradigm shift in the commission’s operations, highlighting that compliance and enforcement should extend beyond the traditional focus on business registration.
“Upon assuming my role in 2023, I identified the urgent need to elevate the commission’s regulatory and management functions,” Magaji stated. He noted that compliance enforcement has become a cornerstone of his four-point agenda, aimed at modernising the commission’s approach to business oversight.
Magaji also addressed the potential of Artificial Intelligence (AI) to streamline routine tasks such as business registration, thereby allowing CAC to allocate resources toward more complex compliance and enforcement activities. He cited the success of the Point-of-Sale (PoS) Formalisation Project, which has successfully registered approximately 100,000 PoS operators under Section 863 of the Companies and Allied Matters Act (CAMA) 2020. The project aims to formalise at least 250,000 operators, contributing to the regulation of Nigeria’s estimated 40 million micro, small, and medium enterprises (MSMEs).
“Formalisation is crucial for legitimate business operations and access to government support,” Magaji explained, noting that it also helps mitigate risks associated with unregistered businesses, including money laundering and terrorism financing. He indicated that the CAC plans to implement sanctions for operators who fail to meet formalisation requirements, clarifying that multiple registrations across fintech platforms are unnecessary.
In addition to pre-incorporation activities, Magaji stressed the importance of prioritising post-incorporation compliance, which he described as a sustainable revenue source for modern registries. He outlined plans to tackle issues such as shell companies, opaque ownership structures, and the proper disclosure of individuals with significant control, aligning these efforts with global standards and regulations.
“This training will empower our staff to confidently undertake compliance enforcement and inspection duties,” he said, adding that it marks the beginning of a robust post-incorporation compliance strategy. The training includes technical sessions on statutory books, records, returns, and filings for registered entities, featuring insights from law enforcement agencies.
Representatives from various agencies, including the National Drug Law Enforcement Agency and the Nigeria Police Force National Cybercrime Center, attended the training, expressing their support for CAC’s initiative. They acknowledged the critical role that compliance and enforcement play in ensuring a secure business environment.
“This is a commendable step forward,” said Harami Wakirwa, Deputy Commander on Narcotics at the National Drug Law Enforcement Agency. “Let us work together to foster a culture of compliance and make a positive impact in our industries and countries.”
