CAC to deploy AI-driven registration portal, targets 50% MSME formalization

The Corporate Affairs Commission (CAC) has announced plans to launch an AI-driven company registration portal aimed at accelerating business registration processes and promoting compliance among Nigeria’s micro, small, and medium enterprises (MSMEs).

Speaking during an in-house enforcement and compliance training for state offices in Abuja, Hussaini Ishaq Magaji, Registrar-General of CAC, emphasized the critical need for formalizing unregistered businesses in the country.

The Registrar-General also disclosed that the system, which eliminates human interference, promises to deliver business registrations within 30 minutes, significantly reducing the current timeframe of up to three days.

“Now the time frame for delivering for registration is 24 hours. And some may linger up to three days because of the inflows and influx of applications coming to the CAC. But now, by next week we are deploying an entirely intelligent company registration portal.

“Meaning that registration with CAC now has nothing to do with human interference. Everything is AI-driven. So you can get registration with the Corporate Affairs Commission in 30 minutes, And this is what we are going to deliver by next week.

“This innovative system reflects our commitment to transparency, efficiency, and fostering investor confidence. By next year, our registration process will be entirely AI-driven,” Magaji added.

Magaji noted that engaging with unregistered businesses poses significant risks, including susceptibility to fraud, money laundering, and terrorism financing.

He stressed that formalization is a vital step for accessing government interventions and ensuring compliance with global best practices.

According to him, To date, the CAC has registered approximately 100,000 Point of Sale (PoS) operators under its formalization project, a figure far below the target of 250,000. With over 40 million MSMEs operating in Nigeria, the Commission aims to achieve 50% formalization as part of its long-term objectives.

“We are working with regulators to develop appropriate sanctions for operators who refuse to formalize their businesses. However, there is a window for regularization before enforcement begins,” Magaji said.

He clarified that PoS operators need only one registration and urged businesses to take advantage of the free registration process.

Magaji commended Fintech companies like Opay, Palmpay, and Moniepoint for actively collaborating on the PoS formalization project. He criticized businesses that cling to outdated informal practices, highlighting the transformative benefits of modern business formalization.

He also said that the new portal will feature an interface allowing third-party platforms, such as Fintech companies, to facilitate seamless business registrations directly from their platforms. He noted that this development, aligns with CAC’s mission to make its registry more accessible and efficient, fostering a conducive environment for local and foreign investors.

“With these reforms, the CAC is set to drive compliance, enhance transparency, and strengthen Nigeria’s business ecosystem,”

Magaji stated further that the ongoing training program focuses on equipping its staff with skills to enforce compliance and inspection duties.

Topics include handling unregistered businesses, addressing shell companies, ensuring proper disclosure of significant controllers, and enforcing post-incorporation compliance such as filing statutory returns and maintaining updated records.