The Registrar General (RG) of the Corporate Affairs Commission (CAC), Hussaini Magaji (SAN), has revealed that only 20 per cent of registered entities in Nigeria are compliant with the requirement to pay annual returns. Magaji made this disclosure during a recent television interview monitored by Daily Trust over the weekend.
Magaji noted that upon assuming office, he observed that the provisions of the Companies and Allied Matters Act (CAMA) were not being adequately enforced, allowing many entities to neglect their obligation to file annual returns. He emphasized the importance of these filings, stating, “Annual returns are updates required by the CAC from every company at the end of the year to provide information on any changes in business activities or directorships. Often, businesses registered for one purpose, such as pharmaceuticals, switch to another, like real estate, without notifying the CAC or filing their annual returns.”
To address this issue, the RG has implemented stricter measures. He stated, “We have updated our system to automatically render any company or business that doesn’t file annual returns by year-end inactive. This means they cannot conduct any official business, including obtaining embassy services, as a simple search on the CAC portal will show their inactive status. This leaves businesses with no option but to comply and file their returns.”
Regarding efforts to enhance the ease of doing business, Magaji highlighted that the CAC has begun deploying Artificial Intelligence (AI) to expedite the business registration process. He explained, “The CAC has transitioned from manual business registrations, which began in 1920, to automated registration in 2021. Now, businesses can be registered within 10 minutes from anywhere in the world, and certificates are issued within 24 hours.”
This initiative aligns with the commission’s broader goal of improving efficiency and compliance in Nigeria’s business environment, ensuring that all entities adhere to legal requirements while facilitating smoother operations for legitimate businesses.
