TechPression

Tag: CAC

  • CAC plans to deploy AI into company registrations in Nigeria

    CAC plans to deploy AI into company registrations in Nigeria

    The Corporate Affairs Commission (CAC) in Nigeria has said it is looking into ways to use artificial intelligence (AI) to make it possible for companies to be registered within minutes, which is the best practice around the world.

    Hussaini Ishaq Magaji, the ReGeneral registrar and CEO of the Commission, said this on Tuesday in Abuja during a meeting with Khalil Suleiman Halilu, the Executive Vice Chairman EVC/CEO of NASENI. He said the CAC will use NASENI’s AI and high-powered computer (HPC) tools to reach this goal.

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    The Registrar-General stated that the CAC registration portal’s operational capacity has been rapidly increasing since his October 2023 appointment, emphasising the need for the commission to explore more technology-driven solutions from the right partners to support and sustain the system.

    “Hussaini Magaji said that the Commission’s desire to explore artificial intelligence to register companies within minutes in line with global best practices is only achievable through partnerships.

    “He believes that NASENI, as a developer of a series of technology solutions, including solar, has a role to play in the quest to take CAC to the next level,” the statement read in part.

    Unleashing the Power: Energy Solution for Buildings and CAC

    The NASENI EVC is developing an energy solution for its facility and CAC. Khalil Sulaiman said private technology businesses abuse government institutions by selling duplicate solutions or undesired items.

    He announced that NASENI’s technological service will soon provide affordable, long-lasting alternatives.

    “In his comments, Bashir Aliyu, S.A. ICT to the NASENI boss, revealed that the agency was working in collaboration with NITDA, the National Centre for AI Robotics, and the Federal Ministry of Communications and Data Economy to replicate the technology used in countries like the United Arab Emirates and Saudi Arabia, amongst others, to improve their AI capacity,” the statement read.

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    More Insights

    NASENI showed off its locally made laptop, Android smartphone, lithium battery, and 300-watt LED solar street lamp last week.

    Halilu, who was showing off the products, said that the agency has taken a quick approach and is fully interested in Technology Transfer and Commercialization of its research and development (R&D) products. He also said these efforts create jobs and wealth and lower the country’s import bills.

    To make sure that it does more than just study, Halilu says that the agency has started to follow its 3Cs principles of Creation, Collaboration, and Commercialization with critical partners in both the public and private sectors.

  • CAC sets N100m capital for startups with foreign investors

    CAC sets N100m capital for startups with foreign investors

    Nigeria’s Corporate Affairs Commission (CAC), which is in charge of registering and regulating businesses, has made a significant change that will affect startups with foreign investors. 

    The agency’s new rule says that the minimum paid-up capital must be N100,000,000 (one hundred million naira).

    The change, which was announced in a memo and is part of the Revised Handbook on Expatriate Quota Administration (2022), is meant to make it easier for foreign companies to work with Nigerian startups by setting rules and guidelines.

    In the statement, the CAC officially announced that the N100,000,000 minimum paid-up capital requirement for companies with foreign participation would start to be implemented.

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    So, this new financial requirement will apply to any incorporation application with foreign stakeholders.

    In addition, the CAC stressed the importance of following this rule, saying that when processing incorporation applications for companies with foreign involvement, the minimum paid-up capital threshold would be strictly followed.

    The CAC has set up a grace period for companies already running but doesn’t have the required minimum paid-up capital. Current companies have six (6) months from the date of the notice to make changes to their finances that align with the new rules set by the commission.

    These companies, which have foreign investors and less than N100,000,000 in paid-up capital, are told they must follow the rules by a specific date.

    If these requirements are not met within the time limit, Section 571(e) of the Companies and Allied Matters Act of 2020 will be used to take action to wind up the companies forcibly.

    Netizens react to new CAC’s paid-up capital threshold

    The announcement has caused reactions in the startup ecosystem, with different stakeholders giving different answers.

    Some see this as a way to boost the financial credibility of ecosystems and startups, but netizens are worried about the problems it could cause, especially for new businesses that want to work with or invest in other countries.

    According to experts, foreign investments in Nigerian startups may be affected. Foreign companies may not partner or fund ventures due to the new requirement’s high cost.

    To meet the minimum paid-up capital requirements, startups with international ties may need to rethink their financial structures and talk to investors.

    The CAC changed the rules to balance foreign participation and financial stability in Nigeria’s startup ecosystem. Over the next few months, we will see how this regulation affects Nigerian business investment and startups doing business abroad.

    Recently, the commission announced it would remove over 100,000 registered companies.

    Unregistered companies must deal with this. Commission Registrar-General and Chief Executive Alhaji Garba Abubakar noted this during a training.