As Nigeria’s Corporate Affairs Commission (CAC) marked 35 years of existence last month, the anniversary offers more than a ceremonial opportunity. It is an important moment for reflection and an opportunity to examine how far the institution has come in improving the ease of doing business, while also confronting the gaps that continue to prevent many Nigerians, especially young entrepreneurs, from fully benefiting from business formalisation.
Established in 1990 to provide legal identity for businesses and incorporated organisations, the CAC occupies a central place in Nigeria’s economic architecture. Without legal identity, markets cannot function efficiently. Contracts cannot be enforced, private ownership cannot be protected, and businesses cannot grow beyond personal networks. In this sense, the CAC is not merely a registry; it is a gatekeeper to opportunity, credibility, and economic inclusion.
Over the past three and a half decades, the Commission has made significant strides. One of the most important reforms was the enactment of the Companies and Allied Matters Act (CAMA) 2020. This law modernised Nigeria’s corporate framework, simplified business structures, expanded access to incorporation, and aligned the country more closely with global best practices. Provisions such as single-shareholder companies, electronic filings, and reduced compliance burdens for small enterprises were long overdue.
Digitisation has also further transformed the registration process. Today, entrepreneurs can register a business online, submit documents electronically, and complete processes that once took weeks in a matter of days. For many Nigerians, especially those outside major cities, this shift has reduced both cost and distance as barriers to entry. These are not small achievements. They reflect an institution that has adapted to Nigeria’s changing economic realities and embraced reform.
Yet progress on paper does not always translate into impact on the ground.
A clear illustration of this gap can be found among student entrepreneurs. Across Nigeria’s universities, polytechnics, and colleges of education, students are building real businesses. They sell products online, offer digital services, run logistics operations, manage fashion brands, and develop tech solutions. Some employ fellow students, others generate income that supports their education. In every sense, these are functioning enterprises.
Despite this activity, our recent policy research publication shows that over 90 percent of student-owned businesses remain unregistered. This is not because the law excludes them. Under CAMA 2020, students are fully eligible to register sole proprietorships and small enterprises. The problem lies elsewhere.
Persistent misconceptions continue to shape behaviour. Many students believe business registration is unreasonably expensive. Others assume the process is excessively bureaucratic or fear that registration automatically attracts taxation, audits, or penalties. Some see registration as something to postpone until after graduation or until a business becomes “big enough.” These beliefs, rather than legal restrictions, keep young entrepreneurs locked out of the formal economy.
The consequences of this informality are far-reaching. Informal businesses struggle to access finance, protect their business names, build customer trust, or enter formal supply chains. They cannot easily open business bank accounts, apply for grants, or participate in procurement opportunities. Intellectual property remains vulnerable. Growth becomes difficult, not because the ideas lack merit, but because the businesses lack legal identity.
Our research further shows a revealing contradiction. While most student entrepreneurs acknowledge that business registration improves credibility and access to opportunities, cost and perceived complexity remain powerful deterrents. Yet when asked whether they would formalise if costs were lower and processes clearer, an overwhelming majority answered yes. This suggests that resistance to formalisation is not ideological; it is informational and psychological. There is a strong demand for formality that policy has not yet fully unlocked.
To be fair, this challenge is not a failure unique to the Corporate Affairs Commission. It reflects a broader coordination gap between regulators, universities, and youth-focused entrepreneurship programs. Nigeria has invested heavily in entrepreneurship education over the past decade. Business plan competitions, pitching, innovation hubs, and skills training. However, much of this focuses on ideation, pitching, and funding readiness, with little emphasis on regulatory literacy.
Students are taught how to innovate, but rarely how to formalise. As a result, many encounter the CAC for the first time only after graduation, often when their early ventures have already collapsed or been abandoned. This disconnect weakens the entrepreneurship pipeline and undermines the long-term impact of reforms intended to support small businesses.
This is where the next phase of the CAC’s reform journey must focus, bridging the gap between reform and understanding.
At 35, the Commission has the credibility and institutional maturity to go beyond digitisation and into targeted engagement. Student entrepreneurs represent Nigeria’s future business class. Bringing them into the formal economy early strengthens compliance over time, expands the future tax base, and builds a culture of lawful enterprise. It also normalises formalisation as a starting point, not a finish line.
But doing so requires more than an online portal. Accessibility is not only about technology; it is about relevance and trust. Practical steps can make a difference. Student-focused guidance that explains registration in clear, simple terms. Campus-based outreach in partnership with universities and credible organisations. Clear communication around taxation thresholds to dispel unnecessary fear. Innovative approaches, such as temporary or reduced-cost student registration categories, could significantly lower barriers without undermining regulatory integrity.
Encouragingly, small-scale interventions like “Your business, Your identity” advocacy project already show what is possible. When students are guided through the process, formalisation follows. When myths are replaced with accurate information, fear gives way to confidence. When the CAC is seen not as a distant authority but as an enabler, compliance becomes voluntary rather than coerced.
As the Corporate Affairs Commission celebrates its 35th anniversary, its legacy should not be measured solely by the number of businesses registered or the speed of digital processes. It should also be measured by who is being reached. The strides made in reform and digitisation deserve recognition. The challenge now is inclusion, ensuring that young entrepreneurs, students, and first-time founders are not left behind.
Nigeria’s economic future depends on converting entrepreneurial energy into sustainable, formal enterprises. The CAC has laid much of the groundwork. The task ahead is to meet citizens, especially young ones, where they are, and help them see formalisation not as a burden, but as a pathway to growth. At 35, that is both the Commission’s challenge and its opportunity.
Omotara Adediran is the Project and Advocacy Lead at the Institute for Free Market and Entrepreneurship West Africa (IFREME). She is a young entrepreneur who is passionate about entrepreneurship and market-driven development across Africa.
