In a move that could shake Nigeria’s informal and digital business ecosystem, the Corporate Affairs agency (CAC) has given a stern six-week deadline for all unregistered enterprises to register with the agency or risk jail time.

According to the notice issued on Tuesday, operating under an unregistered name, acronym, or company structure is now a criminal offence under Section 863 of the Companies and Allied Matters Act (CAMA) 2020. The penalty consists of up to two years in prison and a daily fine for each day the infraction continues.

This is more than just a corporate concern. This warning applies to Instagram vendors, online food dealers, and content makers with catchy brand names. Your WhatsApp business name or skit brand that was previously considered “just vibes” may suddenly violate federal law.

The action follows the N1.3 trillion fraud involving the defunct CBEX cryptocurrency investment scheme. While the promoter, ST Technologies, was registered with the CAC, it was not regulated by the Securities and Exchange Commission (SEC) to provide investment services. This round of harsher enforcement was driven by a compliance gap.

The CAC also stated that anyone who knowingly makes false statements on official business materials, such as flyers, websites, social media bios, or signage, can face prosecutions under Section 862, which states that any person who, in any document required under the Act (including the aforementioned official publications of a company), knowingly makes a false statement in any material respect commits an offence and is liable on conviction to imprisonment for a term of two years, in addition to a daily fine imposed on the company for every day the offence continues.

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Following this, the EFCC stated that obtaining a Special Control Unit against Money Laundering (SCUML) certificate does not constitute a license to operate an investment platform, making it more important than ever to get formal registration and licensing.

The Commission gives all impacted parties only six weeks from the date of notice to comply. Following that, enforcement will start.

To avoid legal consequences, visit www.cac.gov.ng and register now.