By Busola Bamidele
The Corporate Affairs Commission (CAC) has unveiled plans to introduce an AI-powered company registration portal designed to simplify and accelerate business registration processes for Nigeria’s micro, small, and medium enterprises (MSMEs).
The new system, set to launch next week, promises to deliver business registrations within 30 minutes, a significant improvement from the current 24-hour to three-day timeframe.
Speaking during an enforcement and compliance training session in Abuja, Hussaini Ishaq Magaji, Registrar-General of the CAC, emphasized the initiative’s importance in formalizing Nigeria’s vast informal business sector.
He noted that engaging with unregistered businesses poses risks such as fraud, money laundering, and terrorism financing, making formalization crucial for accessing government interventions and ensuring global compliance.
“Our new AI-driven registration portal eliminates human interference, making the process faster, more transparent, and investor-friendly,” Magaji stated. “With this innovation, businesses can complete their registrations in just 30 minutes. This reflects our commitment to efficiency and fostering confidence in Nigeria’s business environment.”
Boosting MSME Formalization
Magaji revealed that approximately 100,000 Point of Sale (PoS) operators have been registered under CAC’s ongoing formalization drive, far below the target of 250,000. With over 40 million MSMEs operating nationwide, the Commission is working toward formalizing 50% of these enterprises as part of its long-term objectives.
“We are collaborating with regulators to introduce sanctions for operators who fail to formalize their businesses. However, there is still a window for regularization before enforcement begins,” he added.
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Collaboration with Fintechs
The Registrar-General praised Fintech companies, including Opay, Palmpay, and Moniepoint, for their support in the PoS formalization project.
He also announced that the new portal would integrate third-party platforms, enabling businesses to register seamlessly via Fintech apps, aligning with CAC’s mission to enhance accessibility and foster a more efficient business environment.
“This integration will transform our registry, making it more accessible to both local and foreign investors. With these reforms, the CAC aims to strengthen compliance, enhance transparency, and boost Nigeria’s business ecosystem,” Magaji explained.
Training for Enhanced Compliance
As part of the reforms, the CAC is equipping its staff with skills to enforce compliance and inspection duties.
The training program covers critical areas such as tackling unregistered businesses, addressing shell companies, ensuring disclosure of significant controllers, and enforcing post-incorporation compliance requirements like filing statutory returns.
The new AI-driven portal, combined with these enforcement measures, underscores CAC’s dedication to modernizing Nigeria’s business landscape, fostering growth, and ensuring alignment with global best practices.
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