CAC Gives Six-Week Ultimatum For Registration Of Unregistered Businesses In Nigeria

The Corporate Affairs Commission (CAC) has given all unregistered businesses in Nigeria six weeks to complete their registration.

In a public announcement on Tuesday titled “Carrying On Business in Nigeria Under an Unregistered Name or Acronym,” the CAC warned that failing to register could lead to prosecution or even jail time.

The commission explained that under Nigerian law (Section 863 of the Companies and Allied Matters Act, 2020), it is illegal to run a business—whether it’s a company, limited partnership, or sole proprietorship—without registering it.

It’s also against the law to use a name or abbreviation that hasn’t been officially registered.

The CAC also reminded businesses that they must clearly display their registered name and number at all their locations, as required by Section 729 of the Act.

“In addition, the company is required to state its registered name and registration number on all its official publications, including letterheads, signage, marketing, and publicity materials,” the statement added.

Noting that businesses that ignore these rules risk legal action, the commission warned that violating the Act could lead to up to two years in prison.

The statement continued: “In particular, the general public should note the provisions of Section 862 (1) of the Act, which state that any person who, in any document required under the Act (including the aforementioned official publications of a company), knowingly makes a false statement in any material respect commits an offence and is liable on conviction to imprisonment for a term of two years, in addition to a daily fine imposed on the company for every day the offence continues.”

If a company knowingly gives false information in official documents, it could face both jail time and daily fines.

To avoid penalties, the CAC urged all companies and business owners to comply with the law within the six-week deadline. If they don’t, enforcement measures—including court action—will be taken.

KanyiDaily recalls that the Federal Government had mandated all PoS operators in the country to register their businesses with the Corporate Affairs Commission (CAC).