40,000 firms in Nigeria dormant- CAC
No fewer than 40,000 companies operating in the country are dormant, the Corporate Affairs Commission, CAC, disclosed last Wednesday.
Acting Registrar-General of CAC, Lady Azuka Azinge, who revealed this at a briefing to mark her 2nd year in office, said the companies however have a period of time within which to reapply and be relisted in the commission’s database.
“I believe that about 40,000 companies are dormant; we review that from time to time; if we strike off, some still come back because they have a period of time within which they can reapply to be listed back in the commission’s database,” Azinge said.
She disclosed that the commission registered a total of 244,428 business names under the recent Business Incentive Strategy, BIS, promo, which reduced the cost of registration to 50 per cent low.
While speaking on the controversy surrounding the award of certificates to registered businesses, she maintained that all BIS registrants across the country have been awarded certificates.
The CAC boss however admitted the commission had an initial problem of insufficient certificates when the Vice President made the announcement but moved certificates from its offices across the country that were not so busy and issued them to all registered businesses.
“We had a small problem because the last one was announced by the Vice President, out of excitement that it was doing very well, and for more MSMEs to come into the formal sector. So he announced it when we had already planned for the year and we didn’t have sufficient certificates.
“We knew that when we have that promo there would be insurgence of request from people who want to register. So we had a short period when the certificates finished as we were doing this. We had to start moving certificates from offices that were not so busy. Within 2, 3 weeks of that period, new certificates arrived and everything has been cleared, she said.
Azinge, who used the occasion to innumerate her achievements in office, noted that CAC, under her watch, carried out faithful implementation of presidential executive order on the ease of doing business in the country and other relevant reforms.
She said the commission facilitated the passage of Companies and Allied Matters Act, CAMA, Amendment Bill 2019 by the Senate and House of Representatives, adding that the Bill was currently awaiting Presidential assent.
The Registrar-General said the sum of N1 billion was used by the commission to settle the 9 per cent salary increment arrears that arose from a tripartite agreement between the Federal Ministry of Industry, Trade and Investment, CAC and the Union in 2013, which was a major cause of perennial industrial unrest.
According to her, the gesture and other reforms carried out by the commission have restored full industrial harmony between the union and management, leading to more productivity.