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The Corporate Affairs Commission (CAC) has announced new measures to strengthen its compliance and enforcement mandates, aiming to formalize businesses and improve post-incorporation compliance. The Registrar-General of the CAC, Hussaini Magaji, unveiled these plans during a training session titled “Re-engineering the Commission for Compliance and Enforcement Mandates” held in Abuja.
Magaji emphasized the need for a paradigm shift in the CAC’s operations, highlighting compliance and enforcement as pivotal functions beyond the routine registration of businesses.
“When I assumed office in 2023, one of my priorities was to bring the commission’s regulatory and management functions to the forefront. This inspired the inclusion of compliance enforcement as a key element of my four-point agenda,” he stated.
He noted that advancements in Artificial Intelligence (AI) could streamline routine tasks like business registration, allowing the commission to allocate more resources to complex compliance and enforcement activities.
Achievements in Formalization
The Registrar-General highlighted the success of the PoS Formalisation Project, which has registered approximately 100,000 Point-of-Sale (PoS) operators under Section 863 of the Companies and Allied Matters Act (CAMA) 2020. The initiative aims to formalize 250,000 operators as part of broader efforts to regulate Nigeria’s estimated 40 million micro, small, and medium enterprises (MSMEs).
“Formalization is the foundation of legitimate business operations and access to government interventions. It also mitigates risks such as money laundering and terrorism financing,” Magaji explained.
He announced plans to impose sanctions on operators who fail to meet formalization requirements and clarified that a single registration is sufficient for businesses operating across multiple fintech platforms.
Enhancing Post-Incorporation Compliance
Magaji stressed the importance of post-incorporation compliance as a sustainable revenue source for modern registries. He outlined plans to tackle issues such as shell companies, opaque ownership structures, and non-disclosure of persons with significant control, aligning with global standards and the Persons with Significant Control Regulations.
“This training equips our staff to confidently undertake compliance enforcement and inspection duties. It marks the beginning of our shift towards a hyper post-incorporation compliance mode,” he added.
The training includes technical sessions on statutory records, filings, and returns for registered entities, with contributions from law enforcement agencies to provide practical insights.
Inter-Agency Collaboration
Harami Wakirwa, Deputy Commander on Narcotics at the National Drug Law Enforcement Agency, commended the CAC’s commitment to promoting compliance and accountability.
“This initiative is a step in the right direction. Let us work together to foster a culture of compliance and make a positive impact in our industries and country,” Wakirwa stated.
Deputy Director of the Nigeria Police Force National Cybercrime Center (NPF-NCCC), DCP Usman Ahmed, highlighted the importance of compliance and enforcement in addressing modern challenges such as cyber-attacks.
“This training provides an opportunity to enhance cybersecurity, strengthen inter-agency collaboration, and restore public confidence in our institutions. By re-engineering our operations, we can make a significant impact,” Ahmed remarked.
Commitment to Global Standards
Magaji urged participants to engage actively in the training and embrace the reforms as part of efforts to align the CAC’s operations with global best practices.
The CAC’s renewed focus on compliance and enforcement reflects its dedication to fostering a secure and well-regulated business environment in Nigeria, ensuring integrity, transparency, and accountability in corporate governance.
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