The Corporate Affairs Commission (CAC) has issued a strict six-week ultimatum to all businesses operating in Nigeria without proper registration, warning that defaulters could face legal action, including possible imprisonment.
This directive was made public through a statement issued on Tuesday, titled “Public Notice: Carry on Business in Nigeria Under an Unregistered Name or Acronym.”
According to the commission, businesses operating under unregistered names or acronyms are violating the Companies and Allied Matters Act (CAMA) 2020.
“The Commission wishes to inform the general public that it is a criminal offence under Section 863 of CAMA 2020 to carry on business in Nigeria without registration or under a name different from the one registered,” the CAC said in the statement shared via its social media platforms.
This regulatory clampdown comes in the wake of the collapse of the controversial CBEX cryptocurrency investment scheme, which reportedly defrauded Nigerians of approximately N1.3 trillion.
The Economic and Financial Crimes Commission (EFCC) had earlier clarified that although ST Technologies International Limited—the promoter of CBEX—was duly registered with the CAC, it had no operational licence from the Securities and Exchange Commission (SEC) to run an investment platform.
The CAC further reminded the public that under Section 729 of CAMA, all registered companies are mandated to display their official business names and registration numbers at all operational locations and on all business documents.
“It is mandatory for every company registered under the Act to display its name and registration number outside each place of business, and on every official publication, letterhead, signage, and promotional material,” the statement noted.
In addition to general registration rules, the Commission also referenced Section 862(1) of the Act, warning that making any false statements in official company documentation is punishable by up to two years’ imprisonment and a daily fine for every day the offence continues.
“Any person who knowingly makes a false statement in any material respect in a document required under the Act commits an offence and is liable on conviction to imprisonment for a term of two years,” the statement emphasized.
The CAC advised stakeholders—especially proprietors of companies, limited liability partnerships, limited partnerships, and registered business names—to urgently regularize their operations within six weeks of the notice.
“Failure to comply will compel the Commission to enforce the law, including through prosecution,” the CAC warned, urging the public to visit www.cac.gov.ng for further guidance.
In a related development, the EFCC has also clarified that possession of a Special Control Unit Against Money Laundering (SCUML) certificate is not equivalent to being licensed for investment operations in Nigeria.
While ST Technologies was indeed registered under SCUML in line with Section 17 of the Money Laundering (Prevention and Prohibition) Act, 2022, the anti-graft agency insisted this does not authorize it to manage or promote investment schemes.
“This certificate does not confer legal approval for investment operations,” the EFCC stressed.
