The Corporate Affairs Commission (CAC) has issued a stern six-week ultimatum to all businesses operating without registration, warning of legal consequences including jail time and fines.
In a public notice released on Tuesday titled “Carrying on Business in Nigeria Under an Unregistered Name or Acronym,” the CAC made it clear that running a business without formal registration violates the Companies and Allied Matters Act (CAMA) 2020, particularly Section 863.
“Operating any form of business entity—whether as a company, limited liability partnership, limited partnership, or business name—without registration is a criminal offence,” the commission warned.
The notice also addressed the use of unregistered names or acronyms, stating this too is in breach of the Act.
The CAC further cited Section 729, which mandates all registered entities to display their official name and registration number at every business location and on all formal publications, including marketing and publicity materials.
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Non-compliance may lead to prosecution, with penalties including imprisonment for up to two years.
Additionally, Section 862(1) outlines that knowingly submitting false information in documents required under the Act could attract similar jail terms and daily fines for each day the violation persists.
This announcement serves as a call to action for business operators across the country, as the commission reiterated that enforcement actions—including prosecution—will begin at the end of the six-week grace period.
The CAC’s move signals a broader effort to formalize Nigeria’s business environment and ensure greater accountability across sectors.