The Corporate Affairs Commission (CAC) has issued a stern six-week ultimatum for businesses in Nigeria that are operating without proper registration.
The Commission warned that any company failing to comply with the registration requirements of the Companies and Allied Matters Act (CAMA) 2020 will face legal penalties, including potential imprisonment and fines.
In a public notice released on April 29, 2025, the CAC reiterated that businesses operating without registration or using unregistered names or acronyms are violating Section 863 of CAMA, which classifies such practices as a criminal offense. Under the law, violators could face imprisonment of up to two years, in addition to daily fines for each day the offense continues.
The CAC also pointed out the importance of Section 729 of CAMA, which mandates that all registered businesses display their official name and registration number prominently at every business location and on all official publications. This includes letterheads, signage, advertisements, and marketing materials. The Commission emphasized that businesses that fail to follow these provisions may face further sanctions.
The deadline for compliance with these regulations is set for six weeks from the notice, and business owners are strongly urged to take immediate steps to ensure they are in full compliance with CAMA. The CAC made it clear that failure to adhere to these regulations will result in enforcement actions, including prosecution.
The Commission has advised all business owners, especially those operating informally or with incomplete registration, to visit the CAC’s official website for more information on the registration process and other necessary steps to legalize their business operations. The CAC has committed to supporting businesses through this process to ensure that all enterprises operate within the legal framework.
This move is part of the Nigerian government’s broader efforts to formalize the economy and ensure that all businesses are properly registered and compliant with the law. It is seen as a step toward promoting transparency, accountability, and sustainability within the business environment, thereby strengthening Nigeria’s economic foundation. The CAC’s actions also align with the government’s commitment to enhancing ease of doing business in the country and protecting the interests of consumers and investors alike.
