The Corporate Affairs Commission (CAC) has issued a six-week ultimatum to all businesses operating in Nigeria under unregistered names or acronyms, warning that failure to comply with registration laws may lead to prosecution and potential imprisonment.
This directive was announced on Tuesday in a public notice titled “Carry on Business in Nigeria Under an Unregistered Name or Acronym”, shared via CAC’s official social media platforms.
The warning follows the recent collapse of the fraudulent cryptocurrency platform CBEX, which defrauded investors of approximately ₦1.3 trillion. Although its promoter, ST Technologies International Limited, was registered with the CAC, it lacked the necessary license from the Securities and Exchange Commission (SEC) to operate as an investment platform.
The CAC reminded the public that under Section 863 of the Companies and Allied Matters Act (CAMA) 2020, it is a criminal offence to operate a company, limited liability partnership, limited partnership, or business name without proper registration—or to do so under an unregistered name or acronym. Violators face a fine and up to two years’ imprisonment.
Additionally, Section 729 of the Act mandates all registered entities to display their legal name and registration number at each place of business and on all official communications, including signage, letterheads, and marketing materials.
The statement emphasized that knowingly making false claims or misrepresentations in official documents constitutes a criminal offence under Section 862 of CAMA and carries further legal penalties, including daily fines for ongoing violations.
Businesses are strongly advised to ensure compliance within six weeks of the notice. The CAC stressed that failure to do so will result in enforcement measures, including legal action. Stakeholders are encouraged to visit the Commission’s website at www.cac.gov.ng for more information.
Separately, the Economic and Financial Crimes Commission (EFCC) clarified that possession of a Special Control Unit Against Money Laundering (SCUML) certificate does not grant a company legal authority to offer investment services. While ST Technologies is registered with SCUML, the EFCC noted that it was not licensed to provide investment products, as required by law.