The Corporate Affairs Commission (CAC) has issued a strict warning to businesses in Nigeria, urging full compliance with the Companies and Allied Matters Act (CAMA), 2020, or risk facing severe penalties—including up to two years in prison and daily fines.
In a public notice released Tuesday, the CAC emphasized that all companies, limited liability partnerships (LLPs), limited partnerships (LPs), and business name operators must strictly adhere to the Act’s provisions, particularly those relating to business registration and the proper display of registration details.
“It is a criminal offence under Section 863 of the CAMA, 2020 to carry on business in Nigeria under a name or acronym that differs from what was registered with the Commission,” the CAC stated.
Legal Requirements for Businesses
According to the notice:
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All businesses must clearly display their registered name and registration number at every business location.
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These details must also appear on official documents, including signage, letterheads, marketing materials, and publicity publications—as required by Section 729 of the Act.
Failure to comply with these requirements is a prosecutable offence.
The Commission also warned against the submission of false information in any document related to business operations. Under Section 862(1) of the Act, knowingly providing false details is punishable by:
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Imprisonment of up to two years, and
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Daily fines for each day the offence continues.
Six-Week Compliance Deadline
The CAC has given all affected entities a six-week grace period to comply with the outlined provisions. After this window, the Commission said it will take necessary legal action, including prosecution, against defaulters.
“Every company, LLP, LP, and business name proprietor must ensure full compliance within six weeks of this notice. Failure to do so will result in enforcement measures,” the notice concluded.
This announcement comes as part of ongoing efforts to sanitize Nigeria’s business environment and ensure legal accountability for all operators.
