CAC Issues Six-Week Ultimatum To Unregistered Businesses

The Corporate Affairs Commission (CAC) has issued a stern six-week deadline to all unregistered businesses operating in Nigeria, mandating immediate registration or risk prosecution and possible jail time.

This directive, contained in a public notice released recently titled: ‘Carrying On Business In Nigeria Under An Unregistered Name Or Acronym,’ warns that operating without formal registration is a criminal offence under Section 863 of the Companies and Allied Matters Act (CAMA) 2020.

The announcement follows public outrage over the collapse of CBEX, a fraudulent cryptocurrency investment scheme operated by ST Technologies International Limited, which reportedly defrauded Nigerians of over N1.3 trillion. While the company was duly registered with the CAC, it lacked proper licensing from the Securities and Exchange Commission (SEC) to function as an investment platform—a regulatory gap the CAC says it is determined to address.

According to the commission, businesses that continue to operate without registration—as companies, partnerships, or under business names—will face prosecution that could lead to up to two years in prison, in addition to daily fines for continued non-compliance.

The CAC also warned against the use of unregistered names or acronyms and reminded business owners of their obligation to visibly display their registered name and number at all business locations and on all official documents, including signage, letterheads, and promotional materials, in accordance with Section 729 of CAMA.

Furthermore, any individual who knowingly makes false statements in official filings or documents required under the Act will face criminal charges under Section 862, which carries a two-year prison term and financial penalties.

The commission emphasised that enforcement actions, including prosecution, would commence immediately after the six-week grace period lapses.

This move highlights CAC’s renewed focus on sanitising Nigeria’s business space, curbing the rise of fraudulent entities, and ensuring transparency and accountability in commercial operations.

Business owners and entrepreneurs are therefore urged to take advantage of the window to regularize their operations and avoid the legal consequences of non-compliance.