Nigeria’s Corporate Affairs Commission (CAC) is currently at the center of a major controversy involving allegations of systemic extortion and official misconduct. The agency’s Registrar-General, Hussaini Ishaq Magaji (SAN), is accused of orchestrating a scheme that forced nearly 300,000 small business owners to pay nearly double the legal rate for business registration.
At the heart of the dispute is a collaboration with major fintech platforms—including OPay, Moniepoint, and PalmPay—to register Point-of-Sale (PoS) operators. While the statutory government fee for business name registration was reportedly ₦10,500 at the time, entrepreneurs were allegedly charged ₦20,000. Sources claim the ₦9,500 surplus per person was funneled to a private consultant handpicked by Magaji, bypassing official treasury channels.
Allegations of Financial Impropriety
Beyond the registration fee scandal, a formal petition submitted to the Code of Conduct Tribunal on August 19, 2025, by the “Concerned Staff Forum” outlines several other serious grievances:
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Excessive Spending: The petition alleges the purchase of high-end luxury vehicles, including a 2024 Toyota Land Cruiser for ₦200 million and a Lexus LX600 for over ₦400 million, using agency funds.
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Travel Discrepancies: Claims have surfaced regarding millions of Naira approved for local and international trips—including a study tour to Malaysia—that were allegedly never undertaken.
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Operational Misconduct: Staff members have raised concerns over the “commercialization” of internal examinations and promotions, alongside a general disregard for administrative transparency.
The Registrar-General’s Defense
In response to the outcry, Hussaini Ishaq Magaji has dismissed the allegations as a misunderstanding of regulatory enforcement and updated fee structures. He maintains that:
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Legal Necessity: The crackdown on PoS operators is a security measure. Unregistered terminals have been used to process kidnapping ransoms and facilitate money laundering, and formal registration allows the government to maintain vital “Know Your Customer” (KYC) data.
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Updated Pricing: Magaji clarified that the CAC recently reviewed its fees. According to him, the official rate is now ₦20,000 for registration plus a ₦5,000 availability check, totaling ₦25,000—meaning the ₦20,000 charged to operators was actually a discounted rate.
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Private Sector Charges: He explained that because many operators struggle with technology, the CAC provided API access to third-party service providers. He asserts that any additional service fees are determined by these companies and the fintech platforms, not the CAC itself.
Commitment to Small Businesses
To counter claims of being anti-poor, Magaji highlighted a partnership with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). This initiative aims to provide 250,000 free business registrations to Nigerian youths, representing a ₦7 billion investment in formalizing the informal economy. He insists the ultimate goal is job creation and national security, rather than revenue generation.
The situation remains fluid as the National Assembly and various anti-corruption bodies have been urged to investigate the flow of funds and the transparency of consultant contracts within the Commission.
