In addition to registration, CAC pointed out that any person who knowingly makes a false statement in documents required by the Act commits an offence under Section 862(1). Upon conviction, offenders are liable to a prison sentence of up to two years and may also face daily fines for continued violations.
Abuja, Nigeria – The Corporate Affairs Commission (CAC) has issued a six-week ultimatum to all businesses operating in Nigeria under unregistered names or acronyms, warning that failure to comply may lead to prosecution and possible imprisonment.
This directive was made public via a statement released by the commission on Tuesday titled, “Public Notice: Carry on Business in Nigeria Under an Unregistered Name or Acronym.” The notice, shared across CAC’s official social media channels, highlights the legal implications of operating outside the confines of the Companies and Allied Matters Act (CAMA), 2020.
Citing Section 863 of the Act, the commission stressed that it is a criminal offence to operate a company, limited liability partnership, limited partnership, or business name without proper registration. It is equally illegal to conduct business using a name or acronym not duly registered under the Act.
The commission also referenced Section 729 of CAMA, which mandates all registered companies to display their official business name and registration number at every business location. This requirement extends to all official documents and communications, including letterheads, advertisements, signboards, and marketing materials.
In addition to registration, CAC pointed out that any person who knowingly makes a false statement in documents required by the Act commits an offence under Section 862(1). Upon conviction, offenders are liable to a prison sentence of up to two years and may also face daily fines for continued violations.
“The General Public should note that non-compliance with the provisions of the Act will attract strict enforcement measures, including prosecution,” the CAC warned. Businesses are advised to regularise their status within six weeks from the date of the notice to avoid legal action.
This regulatory clampdown follows the collapse of the controversial CBEX cryptocurrency scheme, which allegedly defrauded Nigerians of about N1.3 trillion. While ST Technologies International Limited—the promoter of CBEX—was registered with the CAC, it lacked authorisation from the Securities and Exchange Commission (SEC) to function as an investment platform.
The Economic and Financial Crimes Commission (EFCC), in a separate statement, clarified that ST Technologies held a Special Control Unit Against Money Laundering (SCUML) certificate in accordance with Section 17 of the Money Laundering (Prevention and Prohibition) Act, 2022. However, the EFCC stressed that this certificate does not grant permission to engage in investment-related operations.
The CAC is urging stakeholders to visit its official website (www.cac.gov.ng) for more information and updates on compliance procedures.
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