Unlocking ₦200bn: How the CAC Can Boost Federal Revenue

Nigeria has over 300 million active bank accounts. At least 5% are corporate or current accounts. That suggests around 10–15 million accounts tied to registered businesses. If the Corporate Affairs Commission charged a modest ₦5,000 annual registry maintenance fee, capturing 10 million businesses would generate ₦50 billion per year. Expanding to 40 million businesses could raise ₦200 billion—about 1% of oil and gas revenue. Enforcement could involve instructing banks to freeze unregistered high-turnover accounts. A law could compel informal businesses to register once their transactions exceed a set threshold. Mandatory CAC registration would bring millions into the tax net. Companies would be required to file PAYE, VAT and company income tax returns. This approach taps existing funds now collected informally by churches and others.

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