CBEX: CAC Issues Six-Week Deadline For Business Registration Compliance
In the wake of the recent collapse of the CBEX cryptocurrency scheme, the Corporate Affairs Commission (CAC) has issued a stern six-week ultimatum to all unregistered business entities operating in Nigeria to comply with mandatory registration requirements or face prosecution and imprisonment.
This announcement was made via an official public notice, released on Tuesday and shared across CAC’s official communication platforms and seen by THE WHISTLER.
The notice comes amid heightened regulatory scrutiny following the collapse of CBEX, a fraudulent cryptocurrency investment platform alleged to have defrauded Nigerians of over ₦1.3trn, as reported by the Securities and Exchange Commission (SEC).
The incident has prompted intensified efforts by government agencies to sanitize the business environment and enforce compliance with Nigeria’s corporate laws.
According to the CAC, failure to register a business or operating under an unapproved name or acronym constitutes a criminal offence under Section 863 of the Companies and Allied Matters Act (CAMA) 2020.
The offence carries a penalty of up to two years imprisonment and may include daily fines for each day the infraction continues.
The Commission emphasized that the six-week grace period is the final opportunity for non-compliant operators to rectify their status.
Businesses are required to register appropriately as a company, limited liability partnership, limited partnership, or business name, and operate only under names duly registered under the Act.
In addition to registration, the CAC reminded all registered companies of their obligation under Section 729 of CAMA to display their registered name and registration number at every business location.
Furthermore, official publications—such as letterheads, websites, signage, and marketing materials—must reflect the company’s registered details to avoid penalties.
The notice also references Section 862(1) of the Act, which criminalizes the submission of false information in any statutory documentation, including business communications. Offenders are liable to a term of two years imprisonment upon conviction.
“The Commission will not hesitate to initiate enforcement actions against defaulters, which may include prosecution, conviction, and closure of non-compliant operations,” the statement read.
The CAC urged the public to report any business entities operating under suspicious, misleading, or unregistered identities.
This effort is part of a broader strategy to restore confidence in Nigeria’s corporate environment and protect citizens from fraudulent enterprises.
This initiative is seen as a direct response to the growing concerns about unregulated entities exploiting legal loopholes to conduct illicit activities, as highlighted in the CBEX debacle.
The CAC’s directive serves as both a warning and a call to action, reinforcing the government’s commitment to transparency, accountability, and consumer protection.
With the compliance window set to expire in six weeks, thousands of informal and unregistered businesses across the country now face a critical deadline to legitimize their operations—or risk serious legal consequences.
CBEX: CAC Issues Six-Week Deadline For Business Registration Compliance is first published on The Whistler Newspaper
