The Corporate Affairs Commission (CAC) is poised to transform business registration in Nigeria with the introduction of an AI-powered portal that will reduce processing times to just 30 minutes. Scheduled to launch next week, this innovative system represents a major improvement over the current registration timeframe of 24 hours to three days.
Speaking at an enforcement and compliance training event in Abuja, CAC Registrar-General Hussaini Ishaq Magaji emphasized the portal’s potential to formalize Nigeria’s extensive informal business sector. He pointed out that unregistered businesses pose risks such as fraud, money laundering, and terrorism financing. Magaji stressed that formalizing these enterprises is critical for accessing government programs and adhering to international standards.
“Our AI-enabled portal eliminates human interference, ensuring faster, more transparent, and investor-friendly processes,” Magaji said. “This innovation reflects our commitment to creating an efficient and reliable business environment in Nigeria.”
Accelerating MSME Formalization
While the CAC has successfully formalized 100,000 Point of Sale (PoS) operators under its formalization initiative, it remains far from its goal of registering 250,000 operators. With over 40 million micro, small, and medium enterprises (MSMEs) across the country, the Commission aims to bring at least 50% of these businesses into the formal economy over time.
Magaji also revealed plans to collaborate with regulatory bodies to introduce penalties for operators who fail to comply with registration requirements. He assured that businesses still have a grace period to regularize their status before enforcement measures are implemented.
Fintech Collaboration for Simplified Registration
The CAC is partnering with Fintech platforms such as Opay, Palmpay, and Moniepoint to expand its PoS formalization efforts. Through these collaborations, the new portal will integrate third-party platforms, enabling businesses to complete registrations directly via Fintech apps.
“This integration will revolutionize our registry, making it more accessible to both local and international investors,” Magaji explained. “These reforms will enhance compliance, promote transparency, and build a stronger, more resilient business ecosystem in Nigeria.”
Enhancing Compliance and Modernization
Alongside the portal launch, the CAC is conducting staff training to improve compliance and inspection capabilities. This training focuses on tackling issues such as unregistered businesses, addressing shell companies, and enforcing post-incorporation compliance, including the filing of statutory returns.
By combining the AI-powered portal with comprehensive reform initiatives, the CAC reaffirms its commitment to modernizing Nigeria’s business environment, fostering economic growth, and aligning its operations with global best practices.