CAC Announces New Administrative Proceedings for Businesses

The Corporate Affairs Commission (CAC) has alerted business owners, clubs, associations, and NGOs to its Administrative Proceedings Committee (APC).

The APC has the authority to impose administrative penalties and revocation orders for any businesses that breach the Companies and Allied Matters Act (CAMA). The CAC made this announcement on Thursday, February 6, 2025.

The CAC highlighted that the APC is a new provision of the Companies and Allied Matters Act (CAMA) 2020, designed to facilitate ease of doing business and sustainability for companies, clubs, associations, and NGOs. Section 851 of CAMA 2020 allows individuals with grievances or complaints related to a registered entity to report to the APC.

“The APC will handle complaints and adjudicate non-criminal matters from the operations of entities or associations. It is also authorized to recommend prosecution for criminal matters, and any decision made by the committee, after confirmation by the CAC board, becomes the Commission’s official stance,” the CAC stated.

The CAC noted that aggrieved parties dissatisfied with the APC’s decision have the right to appeal to the Federal High Court, which acts as the appellate court for the Committee’s decisions.

The Commission urged stakeholders to use the Committee for dispute resolution instead of litigation, which can strain Nigerian businesses. “Business owners, clubs, associations, and NGOs are encouraged to take advantage of this new provision to resolve disputes amicably instead of engaging in prolonged litigation that hampers economic growth,” the CAC added.

Complaints should be directed to the APC secretariat via email at apc@cac.gov.ng or sent to the Registrar-General for prompt resolution.

More Insights on the Committee

Section 851 of CAMA establishes the Administrative Proceedings Committee within the CAC, which consists of: (a) the Registrar-General as Chairman; (b) five representatives from the operational departments of the Commission, including one from the Compliance Department; and (c) a representative of the Federal Ministry of Industry, Trade and Investment.

The Committee provides an opportunity for individuals alleged to have breached the Act or its regulations to be heard. It resolves disputes, imposes administrative penalties, and can recommend criminal prosecution.

The legislation and CAC’s notice indicate that enforcement of penalties on non-compliant businesses is imminent, similar to the practices of the Federal Competition and Consumer Protection Commission (FCCPC). Businesses may face both CAC and FCCPC in dispute resolutions.