In late March, President Bola Ahmed Tinubu made a discreet yet significant appointment, naming Senator Dr Ibrahim Idah as Chairman of the board of the Corporate Affairs Commission (CAC). While routine in form, the appointment carries considerable weight, placing a seasoned technocrat at the helm of Nigeria’s primary business registration and regulatory agency.
The CAC is the statutory body responsible for registering, regulating, and supervising companies, business names, and incorporated trustees under the Companies and Allied Matters Act (CAMA) 2020. As board chairman, Senator Ida will provide strategic oversight, shape policy direction, and support the Registrar-General and CEO in executing the commission’s mandate. The role demands a careful balance between regulatory enforcement and facilitating business growth in Nigeria’s dynamic economy.
The new chairman: A profile in policy and practice
Senator Dr Ibrahim Ida is a tested technocrat and policy expert. A former senator for Katsina Central, he brings extensive experience from the Central Bank of Nigeria, a master’s degree in banking and finance from the University of Ibadan, and an LLB from the University of Abuja. This blend of legislative, financial, and legal expertise positions him well to lead the CAC at a critical juncture.
When the young and driven Chukwuemeka Chikelu needed a firm hand to drive the revitalisation of a strategic information organ, Nigerian Monthly, he turned to Senator Ida. He drove the board on which I served as one of three consulting editors. He was firm, diligent, and fair.
The road ahead: Key challenges
The appointment comes amid significant reforms and persistent hurdles. Senator Ida must navigate the following pressing issues:
1. Digital transformation glitches and system reliability
The rollout of the CAC’s AI-powered online registration portal has faced significant technical challenges, including extended periods of downtime, login issues, data errors, and failures in name searches, business registrations, post-incorporation filings, and annual returns. These problems frustrate lawyers, agents, and businesses, undermining the aim of smooth digital service delivery.
2. Low compliance and register integrity
Widespread non-filing of annual returns and an abundance of inactive “shell” companies have forced mass deregistration—over 400,000 companies were removed in 2025 alone. While this cleanup boosts transparency, it also highlights enforcement gaps and resistance from vested interests.
3. Inter-agency and external collaboration issues
Some banks and financial institutions reportedly weaken compliance systems by allowing fake firms or performing inadequate due diligence. Internal staff misconduct, including tampering with records, has resulted in referrals to the Independent Corrupt Practices and Other Related Offences Commission (ICPC), thereby eroding public trust.
4. Bureaucratic burdens and accessibility for SMEs
Despite reforms, small businesses still face cumbersome processes, hidden costs, delays, and perceptions of inflated fees or commercialisation. This hinders the formalisation of the informal economy, especially amid inflation and broader economic pressures.
5. Broader regulatory and infrastructure constraints
Older challenges persist, including inadequate ICT infrastructure, unreliable power supply, and limited investigative powers in corporate governance matters—such as director accountability and minority shareholder protection.
6. Mending fences with the National Assembly
Shortly before the appointment, the Senate Committee on Finance called for the removal of former Registrar-General Hussaini Magaji for repeatedly ignoring invitations to discuss the agency’s revenue. The new chairman must prioritise building a cooperative, transparent relationship with the legislature to ensure smooth oversight and secure political support for the CAC’s agenda.
7. Meeting Anti-Corruption and transparency expectations
The CAC faces pressure to become a cornerstone of Nigeria’s anti-corruption framework. The commission has called for a single, harmonised national register of beneficial ownership to close regulatory loopholes. Senator Ida must manage resistance from sectors that prefer fragmented systems and ensure financial institutions cease transacting with non-compliant companies. Failure could harm Nigeria’s reputation and its efforts to remain off the Financial Action Task Force (FATF) Grey List.
8. Consolidating the credibility of the corporate register
A major reform under the previous leadership was the delisting of over 400,000 inactive and non-compliant companies. A key challenge for the new chairman is sustaining this effort, ensuring the corporate registry remains clean and credible by preventing the re-emergence of shell companies and rigorously enforcing annual returns and disclosure requirements.
The broader ease of doing business context
The CAC plays a critical role in Nigeria’s ease of doing business (EoDB) environment. While the World Bank’s Doing Business rankings have been discontinued, the successor Business Ready (B-READY) report—released in phases from 2024 to 2026—provides detailed pillar-level assessments. Nigeria’s performance remains mixed compared to regional peers, with strengths in business entry offset by weaknesses in infrastructure, enforcement, and regulatory efficiency.
Progress in Company Registration and Digital Transformation
The CAC has driven visible improvements through its online portal. As of 2026:
Timeline: A private limited company can often be registered online in 3–7 days (sometimes 24–72 hours for straightforward cases), compared to weeks in the past—faster than the sub-Saharan Africa average of about 22 days.
Process: Primarily digital via the CAC portal (name search, form filing, payment, document upload). A Tax Identification Number (TIN) is often generated automatically. Certificate collection may still require physical verification in some cases.
Costs: Business name registration starts at around ₦10,000; private company registration ranges from ₦15,000 to ₦50,000+, depending on share capital and structure. Minimum share capital for standard private companies is ₦100,000 (higher for foreign-owned or specialised entities). Foreign participation entails additional steps through the Nigerian Investment Promotion Commission (NIPC).
Initiatives: Free or subsidised registrations for small businesses (e.g., plans to register 3,500 SMEs for free in early 2026), collaboration with other agencies, and bulk options for MSMEs. The CAC has helped over 4 million informal businesses enter the formal and tax net in recent years.
These reforms align with the Presidential Enabling Business Environment Council (PEBEC) efforts and President Tinubu’s Renewed Hope Agenda, which emphasise digitalisation, inter-agency collaboration (e.g., the One-Stop Investment Centre), and the National Single Window for trade.
Subnational Variations
The 2025 PEBEC Subnational Ease of Doing Business Report shows sharp disparities:
Top performers: Lagos (85.6% score), followed by Kaduna (65.1%), Oyo (62.7%), FCT Abuja (61.0%), and Ogun (59.9%). Southwestern states generally dominate due to better infrastructure and digital adoption.
Weaker regions: North East states average the lowest scores (~28.5%), hampered by security issues and infrastructure gaps.
Reform impacts: States implementing changes have seen up to 40% reduction in business registration timelines and over 30% improvement in land administration efficiency.
Key opportunities for strategic advancement
Senator Ida inherits not only challenges but also significant opportunities to build on existing momentum.
1. Completing and optimising digital reforms with AI
The CAC has already achieved significant progress in digitisation. The National Information Technology Development Agency (NITDA) has promised full support for integrating artificial intelligence to further simplify business registration, automate filings, enhance cybersecurity, and prevent fraud. By focusing on portal reliability and expanding AI-driven automation, the chairman can greatly improve Nigeria’s Ease of Doing Business (EoDB) ranking and establish the CAC as a model of tech-enabled governance in Africa.
2. Driving economic growth and MSME formalisation
With Nigeria focused on attracting foreign direct investment and supporting small businesses, Senator Ida can further streamline procedures, lower barriers for startups and informal enterprises, and align CAC operations with national economic reforms. Quicker incorporation and post-incorporation services will facilitate credit access and growth for nano, micro, small, and medium enterprises (MSMEs).
3. Enhancing transparency, anti-corruption, and investor confidence
Continuing the sanitisation of the register, enforcing beneficial ownership disclosure, and strengthening anti-money-laundering measures offer a path to rebuild trust. Collaboration with banks, the Economic and Financial Crimes Commission (EFCC), and the Central Bank of Nigeria (CBN) could create a robust compliance ecosystem that deters illicit activities while encouraging legitimate investment.
4. Leveraging inter-agency partnerships and capacity building
Senator Ida’s background in finance, banking, and public service provides an ideal platform for fostering stronger collaboration between government agencies and the private sector. Recent partnerships—such as with the Bureau of Public Procurement (BPP) to verify company identities and beneficial ownership before awarding contracts—can be expanded to include the Industrial Training Fund (ITF), SMEDAN, and anti-graft agencies. Internal reforms, including staff training, integrity frameworks, and technology upgrades, can address misconduct and improve service culture.
5. Enhancing internal capacity and staff welfare
The previous administration established a foundation of enhanced staff welfare, including plans for a CAC-managed hospital, expanded loan schemes, and no outstanding staff claims. Senator Ida can build on this to foster a highly motivated and skilled workforce. Investing in staff development—particularly in AI and data analytics—will be vital to supporting the commission’s modernisation objectives.
6. Strategic alignment with national and global agendas
Opportunities exist to benchmark against international best practices, such as company registries in Singapore or Rwanda, support innovation in fintech and emerging sectors, and contribute to sustainable development goals through improved corporate governance. The chairman can also influence policy, like amendments to CAMA to meet modern business needs.
Recommendations for sustained improvement
To transform the CAC into a more efficient facilitator of Nigeria’s economic ambitions, the following actions are recommended:
Accelerate full integration of government platforms (tax, immigration, customs) for a seamless “single window” experience.
Address infrastructure bottlenecks, especially power and logistics, through public-private partnerships.
Scale subnational reforms nationwide, with targeted support for lagging states.
Balance enforcement (e.g., compliance, anti-money laundering) with facilitation for MSMEs to reduce informality without stifling entrepreneurship.
Enhance judicial efficiency for contract enforcement and insolvency to build long-term trust.
Conclusion: A defining leadership moment
In summary, Nigeria has made tangible strides in starting a business, thanks to CAC innovations and PEBEC coordination. Entrepreneurs can now formalise more quickly and cheaply than a decade ago. However, the overall business climate remains challenging due to infrastructure, security, and regulatory depth issues.
Senator Dr Ibrahim Ida assumes leadership of the CAC at a critical moment. His success will likely be judged by his ability to handle immediate political tensions with the National Assembly while leveraging technological innovation and institutional collaboration to strengthen the CAC as a cornerstone of Nigeria’s economic transformation. By prioritising quick wins in digital reliability, proportionate enforcement, and stakeholder engagement, he can transform the commission into a dynamic facilitator of job creation, investment, and formal-sector growth. The 2026 B-READY expansion will provide more granular benchmarks to track progress—and a clear scorecard for his tenure.
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