Nigeria’s Corporate Affairs Commission (CAC) is facing growing criticism over the difficulties entrepreneurs encounter when attempting to register their businesses. Despite the introduction of an online registration system in 2015, business owners continue to grapple with bureaucratic delays, unforeseen costs, and system inefficiencies that make the process frustrating and cumbersome.
Chinedu Nwachukwu, a graphic designer who recently sought to formalize his business, shared his frustration with the process. “The official registration fee is as low as N10,000, but after factoring in processing costs, hiring a lawyer, and other fees, it can rise to N20,000 or even N30,000,” he explained. “Eventually, you end up needing legal assistance, even though the process is meant to be straightforward and self-service.”
Christopher Thomas, the founder of Skylight Property and Durable Homes, also experienced significant delays after paying all required fees online. “Despite submitting the necessary documents and paying the required fees, I kept receiving queries and facing months of delays,” he said. “It’s discouraging. I can’t even begin my business because it isn’t officially recognized yet.”
The problem extends beyond just delays. Hidden costs and technical glitches have prompted many entrepreneurs to abandon the registration process altogether. Odoh Alexander, a media services provider, noted that while the official fees are reasonable, issues like network failures often push individuals to rely on agents who charge significantly higher rates.
The CAC’s push to formalize the economy, including the registration of over 1.9 million Point of Sale (PoS) terminals, has faced resistance due to the slow and tedious registration process. Operators have cited these difficulties in their struggle to meet mandated deadlines.
