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Tag: Corporate Affairs Commission

  • CAC deregistered 300,000 dormant companies in one year

    CAC deregistered 300,000 dormant companies in one year

    • More to go, says Registrar–General

    The Corporate Affairs Commission (CAC) has deregistered over 300,000 dormant companies within a year to sanitise the nation’s corporate registration system.

    The Registrar General, Hussaini Ishaq Magaji (SAN), announced this in an exclusive interview with The Nation in Abuja.

    Magaji said: “From October 16, 2023, when I assumed office, to date, we have witnessed an extraordinary level of deregistration. In December 2023 alone, we deregistered over 100,000 companies. By February 2024, another 100,000 companies were removed, and recently, we deregistered an additional 100,000.”

    The CAC boss explained that the deregistered entities had remained inactive, failing to file annual returns for over a decade.

    According to him, some of the companies posed risks to the economy, as they could be used for fraudulent activities.

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    He said: “Our challenge is that we are not even deregistering in millions. This is because, as I earlier told you, business registration in Nigeria started since sometime around 1912. And what we have in our portal is from 2021. So, you can see the barrier.

    “All the historical records from that year to this year are not on the portal. We are onboarding them gradually. When we complete our task, we will then have the total number of the dormant companies and they will go.

    “Our system is integrated with critical agencies, such as the Federal Inland Revenue Service (FIRS), security agencies, embassies, and banks. Once a company is marked as inactive on our portal, it cannot access banking services, process embassy documents, or engage in other operations,” he said.

    Magaji explained the legal framework supporting these actions, saying: “If a company remains dormant for over 10 years, we are empowered to deregister it. Additionally, even if a company has been inactive for two years without filing annual returns, I can deregister it under the law.”

    The registrar general attributed the success of CAC’s measures to the political will of the Federal Government.

    He added: “We have been given a free hand by Mr. President and the supervising minister to carry out our duties without interference. This has enabled us to act boldly and decisively.”

    Magaji dismissed the claims that a significant number of companies were folding up due to insolvency or economic challenges.

    The CAC boss described such assertions as exaggerated.

    He added: “While some businesses apply for voluntary winding up, the numbers of such companies are negligible. Many of these cases arise from changes in business focus rather than economic difficulties. For instance, a company like Nokia transitioned from producing phones to manufacturing vehicle tyres.”

    Magaji noted that technological advancements and shifts in business strategies were driving many companies to restructure rather than exit the market.

    He said CAC hosts Nigeria’s Beneficial Ownership Register, a platform providing free access to information about companies and their significant controllers.

    “Nigeria is one of the global leaders in implementing the beneficial ownership register. We are hosting the register at bor.cac.gov.ng. This transparency ensures that even individuals with indirect control of a company must disclose their interest within 30 days,” he said.

  • CAC to restructure operations, focus on compliance, enforcement – Magaji

    CAC to restructure operations, focus on compliance, enforcement – Magaji

    The Registrar General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji, announced plans over the weekend to restructure operations, particularly the core functions of state offices, with a focus on post-incorporation activities.

    Magaji explained that post-incorporation activities involve the status of a registered entity, taking effect 48 hours after the registration process is complete. He emphasized that this restructuring will be compliance and enforcement-driven.

    Speaking at the 2024 management retreat in Jos, Plateau State, themed “Repositioning the Corporate Affairs Commission for Enhanced Service Delivery,” Magaji stated that staff would be properly organized, trained, and empowered to handle ethical compliance and enforcement responsibilities.

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    He also urged participants to not only address the current needs of customers but to anticipate and prepare for future demands, ensuring that structures and processes remain relevant and up-to-date.

    He said: “The current organogram must be dismantled to pave the way for a more flexible and dynamic structure in synch with global reality. The mass deployment of technologies to perform certain tasks was necessary to meet constant changes in human needs.”

    Speaking, The Plateau State governor, Caleb Mitfwang, who was represented by the commissioner of trade and industry, Musa Sule, applauded the efforts of the RG towards repositioning the Commission while highlighting the economic achievements of the Plateau state.

  • CAC gives assurance on service delivery

    CAC gives assurance on service delivery

    The Registrar-General, Corporate Affairs Commission (CAC), Hussaini  Ishaq  Magaji yesterday assured of the commission’s full commitment to quality service delivery.

    Magaji gave this assurance during the 2024 Customer Service Week in Abuja, stating that the goal is customer satisfaction, quality delivery and feedback.

    He said: “Today marks the beginning of Customer Service Week, a global celebration that is designed by the United Nations (UN) to recognize the importance of delivering and exceptional service. At the CAC we cherish this opportunity to reaffirm our dedication to serving you better.

    “We care about the customers and we’ve made significant strides in enhancing our registration processes, leveraging technology to improve efficiency and reduce processing time. Our online portal has simplified company registration, and our customer service team has worked tirelessly to resolve issues promptly.”

    He added that the vision remains to provide world-class service, ensure every interaction with the CAC leaves a lasting positive impression. “We’ve established a robust feedback mechanism to listen to your concerns and suggestions, driving continuous improvement,” he said.

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    Magaji enjoined the participants to collaborate with his team to achieve the objective which is delivering outstanding service. “Together we shall build a more customer-friendly and responsive commission,” he said.

    Also speaking, the Abuja Chapter Chairman of Institute of Chartered Secretaries and Administrators (ICSAN), Chioma Angela Okeke stressed that the 2024 customer week is very crucial considering the importance of the CAC. “This is a service delivery organization offering services to outsiders. When you are in the system you cannot see things the way outsiders see things,” she said.

  • CAC seeks framework for regulation of registered entities

    CAC seeks framework for regulation of registered entities

    The Registrar General Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji disclosed on Tuesday, March 12, that there is a need to have a reliable framework to regulate the activities of registered entities in the country.

    Magaji disclosed this at a one-day familiarisation session with customers and stakeholders in Abuja, stating that without the regulations the process of having the framework is defeated.

    He said: “I want to take time here to appreciate your several interventions at various stages on this journey to have in place a reliable legal framework which we collectively gave ourselves to regulate the activities of registered entities.

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    “You will agree with me that without regulation the purpose of having the framework is defeated. We still have to work together to ensure that issues related to the regulation of these entities are seamlessly implemented.

    “It is important to exchange ideas on the way forward in enhancing efficient and effective service delivery that satisfies the yearnings and aspirations of all stakeholders. As we do this, we are also conscious of our commitment to stand out as one of the best Companies Registries globally”.

    Magaji assured that the CAC management team has set strategic objectives that will usher in a new relationship that is symbiotic and beneficial to all.

    The Commission has also initiated the process of reviewing its operational checklist to bring it up to speed with international best practices.

    This will go a long way in simplifying our processes and also reduce the time cycle for our services and product delivery.

  • CAC reads riot act against content creators, demands registration or penalty

    CAC reads riot act against content creators, demands registration or penalty

    The Registrar General Corporate Affairs Commission (CAC) Ishaq Hussaini Magaji has called on all social media users, especially content creators to register their activities as business with the commission or risk penalty.

    The Nigerian government is soon clamping down on the social media space, by the time the exercise starts if your business online is not registered with the CAC as a business name it will stop operating, the CAC boss hinted.

    The RG also stated that any business running for over 28 days and not registered will be penalised, most social media business owners have been running their businesses online without any form of registration from the government, these as far as the government is concerned calls for immediate penalty which will be made known soon.

    According to him, “The social media space is a wide space where a lot of transactions are taking place, there is instagram, tiktok, snapchat, facebook twitter, crypto and a whole lot of them. These groups of people are not paying any form of tax to the federal government even though the government is lamenting that the Nigeria tax level is the lowest in the world with only 10% considering how large the country is.”

    Citing the law of the company and Allied Matters Act, 2020 particularly section 814 which made it mandatory for any person doing business in his own name to be registered with the Corporal Affairs Commission, Magaji stressed that it is mandatory now it is no longer optional.

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    “Whatever business you do as long as you have a business name that name must be registered with the CAC.”

    Justification for the policy

    Justifying the need for the new policy regime, Magaji said the whole idea behind the  business names registration is to checkmate terrorism, money laundering and other negative vices in the country.

    “President Ahmed Bola Tinubu has given the directives that all businesses must be regularised into the system, this is to encourage youths so the government can track negative activities in the country. Ignorance of the law is therefore not an excuse,” Magaji stated matter-of-factly.

    “Another point of note is President Ahmed Bola Tinubu’s 50 million jobs for Nigerian youths. which is presently receiving a boost with the CAC. The business name registration done through the microfinance banks comes with a discount rate for those who cannot afford it if they have to do it on their own.”

    Rage over new policy regime

    Speaking with some social media users, they lamented what they described as attempts by the government to gag the social media space.

    Mercy Peters who spoke with The Nation noted that it will be difficult to regulate, stating that Tiktok is a different world entirely. “Before you make money on Tiktok you go through a live video and people come to your live video to gift card, some people can send you dollars or pounds in what is called live, when you get this money it can be withdrawn at the end of the live video meaning you have acquired multiple followers.

    “For me I cannot earn because I do not have followers that support me that much. The government can have a hold on tiktokers because most of them are instagram influencers as they get their endorsements from instagram. Tiktokers can be regulated through their instagram page even though it is a very large community. For the government to regulate social media influencers it has to be through their instagram page because instagram is the power house.

    “Once you get blown from tiktok you move to instagram because that is where as a social media influencer you make your money, you get endorsement and become ambassador. They pay on snapchat.  It is more like a digital marketing app, where people can advertise their products. For you to make an impact on snapchat and be paid you should have at least five thousand and above followers, this qualifies you as a subscriber, then you start boosting your account.”

  • CAC registers 3,098,193 companies in 28 years

    The Corporate Affairs Commission (CAC) on Tuesday said it had registered 3,098,193 companies and firms in Part A, B and C categories from its inception in 1990 to March 21.

    The Acting Registrar General of CAC, Mrs Azinge Azuka disclosed this at the commission customers forum in Abuja.

    Azuka said that in the last three years, the statistics on registration of firms and companies under Parts Limited Liability Company (A), Business Name (B) and Incorporated Trustee (C) was 618,309.

    She explained that in 2016, the council got the sum of 175,098 from the LLC (A), 193,194 from Business name (B) in 2017 and  252,035 from Incorporated Trustee (C) in 2018.

    Azuka said the number of Annual Returns filed under the Parts A,B and C in the last three years was 190,078.

    According to her, the major thrust in the present administration is to revamp the Nigerian economy though the support of Micro Small and Medium Enterprises (MSMEs).

    Read also: New CAC for Apapa port

    She said the commission remained resolute in reviewing its processes regularly, in a bid to improve service delivery.

    “In that regard, work is at advanced stage to amend it enabling law, the Companies and Allied Matters Act (CAMA) in collaboration with the National Assembly.

    “This seeks to ease starting and growing businesses in Nigeria, ensure more appropriate regulation for MSMEs.

    “Enhance transparency and shareholders engagement align regulate framework with International best practices and make Nigeria an investment destination of choice,” she said.

    CAC was established by the Company and Allied Matters Act, which was promulgated in 1990 to regulate the formation and management of companies in Nigeria. (NAN)

  • The new governors-elect in Southwest

    Abiodun

    Dapo Abiodun was born May 29, 1960. He is the Governor-elect of Ogun State.  Abiodun is the board Chairman of the Corporate Affairs Commission. He is the managing director of Heyden Petroleum and the founder of First Power Limited.

    He hails from Iperu Remo in Ogun State and belongs to a royal family. He was born into the family of Dr Emmanuel and Mrs Victoria Abiodun from Iperu Remo, in Ogun East senatorial district.

    He studied civil engineering at the Obafemi Awolowo University Ife, Osun State and subsequently, Accounting at Kennesaw State University, Atlanta Georgia, United States of America (USA). He is the managing director/CEO of Heyden Petroleum Ltd (HPL), an indigenous player in the downstream, midstream, and upstream oil and gas industry in Nigeria. He is also reportedly the founder of First Power Limited.

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    Abiodun was a member of Peoples Democratic Party (PDP) in Ogun State. He defected to the All Progressives Congress (APC) after the 2015 general elections.

     Makinde

    Oluwaseyi Abiodun Makinde, the Oyo State governor-elect, was born December 25, 1967. He is the Group Managing Director of Makon Group Limited, an indigenous oil and gas company in Nigeria. He established his first oil and gas private business called Makon Engineering and Technical Services, (METS) at 29 in 1997, after earning years of work experience with international oil and gas companies.

    Makinde contested for the Oyo State 2015 gubernatorial seat on the platform Social Democratic Party (SDP).

    He was born to a renowned teacher turned accountant, the late Pa Olatubosun Makinde and Madam Abigail Makinde of Aigbofa compound in Oja’ba, Ibadan. He is the third child of the family.

    Makinde went to St Paul Primary School, St Michael Primary School, Yemetu, Ibadan, Bishop Phillips Academy, Monatan, Ibadan and the University of Lagos (Unilag), where he earned a bachelor’s degree in Electrical Engineering.

     Sanwo-Olu

    Lagos State Governor-elect Babajide Sanwo-Olu was born on June 25, 1965. He is a graduate of the University of Lagos, the London Business School, Lagos Business School and the John F. Kennedy School of Government. He was the Managing Director/CEO of Lagos State Property Development Corporation (LSPDC).

    He holds a B.Sc in Surveying and an MBA from the University of Lagos. He is an associate member of the Chartered Institute of Personnel Management (CIPM) and Fellow of the Nigeria Institute of Training and Development (NITAD). He was the treasurer at former Lead Merchant Bank from 1994 to 1997 after which he moved to the United Bank for Africa as the head of foreign money market. He then proceeded to First Inland Bank, Plc (now First City Monument Bank) as a deputy general manager and divisional head. He was the chairman of Baywatch Group Limited and First Class Group Limited. He is a board member of the Department for International Development (DFID/DEEPEN) Fund and Audit Committee of Caverton Offshore Services Group, PLC.

    He began his political career in 2003, when he was appointed Special Adviser on Corporate Matters to the then deputy governor of Lagos State, Femi Pedro. He later became acting Commissioner for Economic Planning and Budget and the Commissioner for Commerce and Industry. In 2007, Sanwo-Olu was appointed Commissioner for Establishments, Training and Pensions.

  • CAC: Deadline on online registration stays

    CAC: Deadline on online registration stays

    The Corporate Affairs Commission (CAC)  has restated its commitment to the October 1 on-line registration deadline despite challenges and attempt at sabotaging the programme.

    Its Registrar-General, Alhaji Bello Mahmud, said the commission would take  steps to configure a new system that would ensure that the deadline is met.

    He blamed the problems that saw clients failing to access its platform on technical challenges. He said the agency was working hard to resolve the issues and assured customers that the service had not been scrapped as had been insinuated in some quarters.

    He said the issues had  been resolved, adding the platform was back online for customers that wanted to register their business.

    He said: “With a timeline of October 1, 2014 already set for the development of a new on-line registration system, the disruption in its services would be addressed very soon.

    “We wish to state unequivocally that the 24-hour business registration procedure launched in 2012 by the Minister of Industry, Trade and Investment is functional and serviceable to the satisfaction of our clients.”

    He said the problems faced by the commission on the platform were information and communication technology (ICT) challenges that were common in developing economies.

    He called on stakeholders in the economy to embrace the code of corporate governance.

    He said an effective code of corporate governance would create a suitable environment for business growth as well as improve the overall interest of business objectives. He expressed the commitment of the commission in nation building, adding that the CAC was institutionalising an annual corporate citizens’ award intended to stimulate a solid foundation for enterprise and proper business ethics.

    The Registrar-General urged major players and stakeholders in the economy to embrace the code of corporate governance to ensure great integrity and rapid business growth.

    According to him, the corporate citizens’ award would promote the culture of good corporate governance in the Nigerian environment by recognising corporate citizens who have conducted their affairs in compliance with statutory requirements and best practices of corporate governance.

  • Court adjourns ruling on C&S Church crisis

    A Federal High Court in Lagos on Monday fixed February 19 for ruling on the objection of a joinder motion filed by an elder of the Cherubim and Seraphim Church against five others over a leadership tussle.

    The plaintiff, Prince Adepoju Arogundade, by his motion, prayed the court to join Remi Beckley, M. Oshode and the Corporate Affairs Commission (CAC) as third to fifth defendants.

    The Incorporated Trustees of the Cherubim and Seraphim Church (C & S) and one Elder Adebola Adewuja are the first and second defendants, respectively.

    The case, which was initially slated for ruling, is now adjourned to February 19, at the instance of the court.

    The News Agency of Nigeria (NAN) reports that the plaintiff had filed the suit in February 2009, seeking an order reinstating him as rightful leader of the C & S Church in Nigeria.

    At the last adjourned date on February 14, Counsel to the plaintiff, Mr. Tunji Gomez, had informed the court of his pending motion for joinder.

    Moving in terms of the motion, Gomez argued that the CAC erred when it re-registered the C & S Church in 1993, which originally had been registered in 1930.

    Meanwhile, Counsel to the CAC, Mr. A.I. Tijani, raised a preliminary objection to the motion for joinder, arguing that it had not been properly joined in the suit.

    Tijani argued that the objection of plaintiff ought to have been raised three months from when the second registration was made.

    He maintained that the law could not avail a party who slept over his right, adding that since the plaintiff failed to raise the issue when the act was done, it had been overtaken by time.

    He, therefore, argued that there was no basis for joining the CAC in the suit.

    After listening to the argument of the counsel, Justice Ibrahim Buba adjourned the case for ruling.

     

  • Institute tasks CAC on efficient reporting standards

    Institute tasks CAC on efficient reporting standards

    Peeved by what it described as tardiness on the part of the Corporate Affairs Commission (CAC) with regards to administrative procedures and processes involving companies’ information, the Institute of Credit Administration (ICA) has impressed on the Commission, on the need to get itself together.

    Giving this advice recently was Dr. Chris Onalo, Registrar/Chief Executive, Institute of Credit Administration (ICA).

    While noting that incorporation information on a company is presently available at CAC on payment of prescribed fees, the situation is not the same with information about annual returns on the audited accounts of company at the Corporate Affairs Commission.

    “It is important that CAC upgrade its system to make available this information online or even simplify its filling system to make retrieval of data easy. It is also important that CAC take necessary steps to make companies comply with the law which made it mandatory for companies to file up annual returns at the CAC,” Onalo stressed, adding: “It is on this premise that the Institute of Credit Administration is calling on the Corporate Affairs Commission to allow for collaboration between our two organisations so as to bring about best practice for greater benefits derivable from the legal related business information aspect of CAC activities.”