The Corporate Affairs Commission (CAC) has outlined plans to enhance its compliance and enforcement responsibilities, Investors King reports.
Speaking in Abuja during an in-house training session on enforcement and compliance for state offices, the Registrar-General of the CAC, Hussaini Magaji, said there is a need for the Commission’s operations to prioritize regulatory and management functions beyond routine business registration.
At the event, titled “Re-engineering the Commission for Compliance and Enforcement Mandates,” Magaji noted that effective management of corporate entities was key to achieving the Commission’s objectives.
“One of the key priorities I identified upon assuming duty in 2023 was the need to bring the Commission’s regulatory and management functions to the forefront. This led to the inclusion of compliance enforcement as a key component of my four-point agenda,” Magaji said.
He highlighted the success of the Point-of-Sale (PoS) Formalization Project, which has registered approximately 100,000 PoS operators under Section 863 of the Companies and Allied Matters Act (CAMA) 2020.
The initiative aims to formalize at least 250,000 operators in the sector and contribute to the broader goal of regulating Nigeria’s estimated 40 million micro, small, and medium enterprises (MSMEs).
“Formalization is the first step for legitimate business operations and access to government interventions. It also mitigates the risks associated with unregistered businesses, such as money laundering and terrorism financing,” Magaji stated.
To ensure compliance, the Registrar-General announced plans to implement sanctions for operators who fail to meet formalization requirements.
He clarified that multiple registrations across fintech platforms are unnecessary as one registration is sufficient.
Magaji also stressed the importance of post-incorporation compliance and described it as a sustainable revenue stream for modern registries.
He unveiled plans to address issues such as shell companies, opaque ownership structures, and inadequate disclosure of persons with significant control, aligning with global standards and the Persons with Significant Control Regulations.
“This training will position our staff to undertake compliance enforcement and inspection duties with confidence. It also marks the start of our drive towards a hyper post-incorporation compliance mode,” Magaji added.
The training included technical sessions on statutory books, records, returns, and filings for registered entities. Resource persons from law enforcement agencies were also present to share practical experiences.
Deputy Commissioner of Police Usman Ahmed, Deputy Director at the Nigeria Police Force National Cybercrime Center (NPF-NCCC), highlighted the importance of compliance and enforcement in securing business operations.
“The challenges we face today, especially in cyber-attacks, demand that we continually adapt and improve our strategies and practices. This training is an opportunity to acquire knowledge, improve cybersecurity, and enhance inter-agency collaboration,” Ahmed said.
He called on participants to embrace the training as a chance to re-engineer operations and reinforce public confidence in institutions.