Ease of doing business in Nigeria: CAC extends business name registration discount

THE NEWSGHOST, NIGERIA – Last year October, Nigeria’s Corporate Affairs Commission (CAC), the government agency responsible for registration and regulation of businesses in the country, announced a 50% reduction in the fee for registration of business names till the end of the year.

Instead of paying a registration fee of ₦10,000, you can now pay a fee of ₦5,000 for a business name registration with CAC.

In a tweet on October 3, 2018, the commission announced that this rebate will be open between October 1 to December 31, 2018.

But just as year 2018 came to an end and the window for the initial concession elapsed on December 31, 2018, CAC declared again in a tweet on January 3, 2019, that it was extending it till March 31, 2019. It had published this notice earlier on its website too.

In its statement, the commission explained that:

‘The Business Incentive Strategy is aimed at creating a window for Micro, Small and Medium Enterprises (MSMEs) to formalize their businesses, which will enable them own corporate account with Banks, have access to Loans, grants and other government interventions.

Members of the public are enjoined to take advantage of this window, to register their Business Names at the reduced cost of ₦5,000 after the Name Reservation of ₦500.’

Last five years, Nigeria was cited in several news reports as one of the worst places in Africa to start business.

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CAC takes 44,000 Nigerian firms off its register

THE NEWSGHOST, NIGERIA – Nigeria’s Corporate Affairs Commission (CAC) has delisted 44,000 Nigerian companies from its register, a recent report reveals.

Bello Mahmud, the Registrar General of CAC, revealed this in an interview with journalists in Abuja.

Mahmud explained that the companies were delisted due to several breaches of the Company and Allied Matters Act (CAMA) and other extant regulations of the commission, particularly late and outright refusal to file returns.

He said:

‘If we discover you are not a going concern, the law establishing us gives us the power to delist from our database.

‘If we discover and write you first, second and third letter without reply, we now deem it that you are not a going concern and we delist you from our database.

‘So far, the first batch we delisted were about nine thousand (9000) And in the second batch about thirty-five (35,000) totalling 44,000 firms delisted from our database and is still ongoing.’

Mahmud described these companies as ‘briefcase companies’ because when you check the addresses they have given, you would not find them.

So far, about 1.5 million firms have been registered by the commission, Mahmud said.