Ongoing CAC Registration Issues for New Business in Nigeria: Challenges and Possible Solutions

CO-WRITTEN WITH ADEUSI VICTORIA

The Corporate Affairs Commission (CAC) is a government-backed body responsible for registering businesses, providing legal identity and ensuring brand protection and credibility. It was established under the Companies and Allied Matters Act (CAMA) 1990 and later amended by CAMA 2020. The commission derives its authority to perform various functions under section 7 of the CAMA Act to supervise business opercccations across Nigeria.

Whether you are running a small business or a growing company, registering with CAC is a very important step in building a sustainable business.

FUNCTIONS OF THE CORPORATE AFFAIRS COMMISSION(CAC)

The Corporate Affairs Commission performs several important tasks such as:

Administering the Act, including the regulation and supervision of the formation, incorporation, management and winding up of companies.

Establishing and maintain companies’ registry and offices in all the states of the Federation suitably and adequately equipped to discharge its functions under the Act or any law in respect of which it is charged with the responsibility.

Arranging and conducting investigations into the affairs of any company where the interests of the shareholders and the public so demand.

Undertaking such other activities as are necessary or expedient for giving full effect to the provisions of the Act.

The Commission also registers Business Names, and Incorporated Trustees as well as provides a wide range of ancillary services.

BENEFITS OF REGISTERING YOUR BUSINESS WITH CAC.

Registering your business with CAC has numerous perks including:

• Legal rights that permit your business to enter into binding contracts and receive protection under applicable business laws.

• The right to open corporate bank accounts in your business name, which you can use to fund, transfer, access to business loans, grants, investor funding and other financial support opportunities.

• Protection of your business name against fraud, unauthorized use and impersonation.

THE NEW REQUIREMENTS

According to a statement posted on the corporate affairs commission's X account on 10th December, 2025, applicants must now provide additional personal and contact details to strengthen verification processes and enhance record accuracy for registered businesses which was pronounced to be effective immediately.

This new requirements is said to be essential for every Business Name Online Update submission which include:

• Date of Birth
• Registered Office Email
• Proprietor’s Email
• Phone Number for registered Address or Proprietor if different
• Valid Means of Identification

The commission clarified that the updated requirements are part of ongoing reforms aimed at improving documentation integrity, preventing fraud, and ensuring seamless communication with business proprietors. New business registration with Nigeria's CAC, expect new mandatory details like Date of Birth, NIN, Phone Number, and Email for proprietors/directors, plus standard requirements: proposed names, business address, nature of business, valid ID (NIN, Driver's License, Passport), and passport photo, all submitted via the CAC Portal.

WHY ARE CAC REQUIREMENTS NECESSARY?

Apart from being a legal requirement, CAC registration is a strategic advantage. As a CAC registered business you can operate with a unique name. CAC protects your business name from duplication or infringement by other businesses which will help you avoid legal issues and complications thereby protecting your brand and building customer confidence and trust. People naturally prefer to trust businesses that look credible and official, and CAC registration helps you achieve exactly that.

CAC registration positions your business for long-term growth. The government recognizes that your business is a separate legal entity, that means your business stands on its own, enjoys legal protection and you won't be responsible for its liabilities. Your business also stands a better chance at accessing Federal government loans, grants and sometimes investments.

THE ISSUES

After the release of the statement, a number of clients gave their complaints about the ongoing reforms - upgrade of the system. A number of complaints about the upgrade of business names which is not reflecting, stating that many business names are not showing on the portal which is affecting the integrity of the company. Many of this concern was tied to the use of AI-Powered systems.

Some of the issues are:

• Missing pending registration: some pending registration from the old portals are not visible on the AI-Powered portal.
• Discrepancy between the approval email and the portal status: users receive approval email for registration but the portals show pending.
• Non-transfer Of Approved Name Reservations: some name reservations approved on the old portal do not reflect on the new portal.

Mainly, the upgrade of the system which has brought a reform in registration of business and upgrade of businesses has caused major issues for business owners which has spanned for months for many.

One of the business owners reported in a comment that it has been over four months and yet, the name of his business is not reflecting.

POSSIBLE SOLUTIONS

The highlighted issues following the CAC system upgrade shows the need for practical solutions. Fixing these problems will restore re-establish trust in the registration process system, some possible solutions includes:

• Human checks in AI-Powered systems: While AI helps improve efficiency, it should be backed up by human support. Regular manual checks should be conducted for delayed applications to ensure the system run seamlessly.

• Regular communication and system updates: The CAC systems should adopt regular updates on system performance & pending issues, and it should be properly communicated so users can be aware.

• Audit and Reconciliation of old records: A thorough audit & reconciliation of records from the old portal to the AI-powered system should be carried out, this would help the systems be coordinated.

• Aligning approved emails with portal status: Discrepancies between approval emails & the portal indicates a synchronization problem. CAC should implement real time integration between portal & email system so approvals are updated instantly.

In conclusion, registration with the Corporate Affairs Commission (CAC) is an important procedure for any business in Nigeria, firstly as a requirement and secondly for recognition and validation. It is to this end that every business must ensure to register with CAC, it is also important that this registration is made easier and more favourable for businesses, especially new businesses, to encourage their registration as a number of issues encountered by both old and new businesses are quite discouraging. The government can employ solutions like regular communication, putting the new Al-powered system into check and ensure its proper functioning.  Taking up these solutions would not only improve the registration and the system of the CAC, it would also encourage business owners.