Over 40m MSMEs are operating in economy — CAC Registrar General
By Matthew Denis
The Registrar General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji SAN, has revealed that it is estimated that around 40 million Micro, Small, and Medium Enterprises (MSMEs) are currently operating within the Nigerian economy.
Magaji made this disclosure during his welcome address at the In-house Enforcement and Compliance Training for state officers, which was held in Abuja on Monday.
He stated, “The Commission has, to date, registered approximately 100,000 Point of Sale (POS) operators under the POS formalisation project, which falls short of the 250,000 expected from that sector alone.”
“Apart from the fintech sector, it is estimated that about 40 million MSMEs are operating in this economy. A realistic goal is to achieve 50 percent formalisation of these enterprises.”
The Registrar General explained that the Commission is collaborating with other regulators to develop appropriate sanctions for operators who have ignored the call for formalisation.
Magaji emphasised that there is still an opportunity for businesses to regularise their operations before any regulatory actions are enforced.
“We also want to clarify that multiple registrations are not required across each fintech for POS operators, as one registration suffices. It should be noted that POS formalisation is a pre-incorporation function,” he said.
He further stressed the importance of enhancing post-incorporation compliance, noting that experience from other jurisdictions has shown that modern registries thrive on post-incorporation revenue, with registration being free of charge.
Regarding the workshop, the Registrar General revealed that the training is intended to strengthen the Commission’s post-incorporation efforts.
“The state offices will play a significant role in this process, but this is not to suggest that the head office will not be involved. We will all be working together to ensure the success of the post-incorporation enforcement drive, which is a Commission-wide sustainability strategy,” he added.
Magaji also mentioned that a framework is being developed to address the actions of directors and officers of companies that have been delisted, with plans to unveil this framework during the training.
The CAC Boss explained that the training would focus on methodologies for handling unregistered businesses, including POS operators. The training will also address the strategic implementation of legal and regulatory frameworks for tackling issues such as shell companies, opaque ownership structures through nominees or trustees, and ensuring proper disclosure of persons with significant control, in line with established guidelines.
He concluded by emphasising that this training is part of the Commission’s agenda for the year, aimed at improving service delivery to customers and boosting revenue generation for the country.
