The Corporate Affairs Commission (CAC) has issued a six-week ultimatum to all businesses operating in Nigeria under unregistered names or acronyms, warning that failure to comply with registration laws will lead to prosecution and potential imprisonment.

This was disclosed in a public notice titled “Carry on Business in Nigeria Under an Unregistered Name or Acronym” released by the CAC on Tuesday. The warning follows public concern over the collapse of the fraudulent cryptocurrency scheme “CBEX,” which defrauded Nigerians of an estimated N1.3 trillion.

According to the CAC, “it is a criminal offence under Section 863 of the Companies and Allied Matters Act, 2020 to carry on business in Nigeria as a Company, Limited Liability Partnership, Limited Partnership or under a Business Name without registration under the Act or by a name (or acronym) other than the name (or acronym) by which the business was registered under the Act.”

It further stated, “Section 729 of the Act requires every Company registered under the Act to state its name as registered and its registration number outside every place where it carries on business…on all its official publications, including its letterhead, signage(s), marketing and publicity materials.”

The commission warned that non-compliance could result in criminal charges: “any person who, in any document required under the Act…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.”

Businesses have been urged to comply within six weeks. “Every Company, Limited Liability Partnership, Limited Partnership and Business Name proprietor(s) is hereby required to ensure full compliance…failing which the Commission shall take all necessary steps (including prosecution) to enforce compliance,” the notice read.

The Economic and Financial Crimes Commission (EFCC) also weighed in, clarifying that although ST Technologies International Limited—the alleged promoter of CBEX—was registered with the CAC and SCUML, it was “not licensed by the Securities and Exchange Commission to operate as an investment platform.” The EFCC added that “registration with SCUML does not authorise it to offer investment services.”

Businesses are advised to visit www.cac.gov.ng for more information.