The Registrar General of the Corporate Affairs Commission, CAC, Hussaini Ishaq Magaji has revealed that only 100,000 Point of Sale (POS) operators have officially registered their businesses in Nigeria.
He noted that registration is part of the Commission’s POS formalization project.
The Registrar General made this revelation during the in-house enforcement and compliance training for state offices on Monday in Abuja,
Magaji pointed out that the training, with the themed “Re-engineering the Commission for Compliance and Enforcement Mandates” would ensure efficient management of corporate entities.
The Registrar General, therefore, called for a paradigm shift in the Commission’s operations. He also emphasized the importance of compliance and enforcement functions beyond the routine registration of businesses by the operators.
“One of the key priorities I identified upon assuming duty in 2023, was the need to bring the Commission’s regulatory and management functions to the forefront.
“This led to the inclusion of compliance enforcement as a key component of my four-point agenda,” Magaji said.
The Registrar General noted that advancements in Artificial Intelligence (AI) could handle routine operational tasks like business registration. And also, freeing resources for more complex compliance and enforcement activities.
Magaji reiterated the success of the PoS Formalization Project. He pointed out that the project had registered about 100,000 Point-of-Sale operators under the requirements of Section 863 of the Companies and Allied Matters Act (CAMA) 2020.
According to him, the project aims to formalize at least 250,000 operators in the sector. This, he said is part of broader efforts to regulate the estimated 40 million Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.
He said, “Formalization is the first step for legitimate business operations and access to government interventions.
“It also mitigates the risks associated with unregistered businesses, such as money laundering and terrorism financing.”
The Registrar General also revealed plans to implement sanctions for operators who fail to comply with formalization requirements. He, however, clarified that multiple registrations across fintech platforms were unnecessary, as one registration sufficed
Magaji also stressed the need to prioritize post-incorporation compliance. Which he described as a sustainable revenue stream for modern registries.
The Registrar General also unveiled plans to address issues like shell companies, opaque ownership structures, and proper disclosure of persons with significant control. He disclosed that this is in line with global standards and the Persons with Significant Control Regulations.
“This training will position our staff to undertake compliance enforcement and inspection duties with confidence.
“It also marks the start of our drive towards a hyper post-incorporation compliance mode.
“The training includes technical sessions on statutory books, records, returns, and filings for registered entities. And also, with input from resource persons from law enforcement agencies to share practical experiences, “he said.
Magaji, therefore, urged participants to engage actively and embrace the reforms. Which is part of efforts to align the Commission’s operations with global best practices.
Representing the National Drug Law Enforcement Agency, its Deputy Commander on Narcotics, Harami Wakirwa, expressed delight with the training. He noted that the initiative demonstrated CAC’s commitment to promoting compliance, integrity and accountability.
“This is a good step in the right direction. I wish you all a productive and engaging experience.
“Let us work together to foster a culture of compliance and make a positive impact in our industries and countries,” he said.
Also, the Deputy Director, Nigeria Police Force National Cybercrime Center (NPF-NCCC), DCP Usman Ahmed, praised the initiative. He acknowledged the crucial role compliance and enforcement played in safeguarding and fostering a secure regime for business operations.
“The challenges we face today, especially in cyber-attacks, demand that we continually adapt and improve our strategies and practices.
“This training is not just an opportunity to acquire knowledge, but should allow us to improve cybersecurity, inter-agency collaboration, and share the responsibility to restore confidence in public institutions.
“We must embrace this opportunity to re-engineer our operations and reinforce our ability to excel in cyber security. Together, we can make a significant impact,” he said
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