The Federal Government is intensifying efforts to formalise activities of Small and Medium Enterprises (SMEs) to increase the country’s tax net, an official has said.
The Registrar- General Corporate Affairs Commission (CAC), Hussaini Magaji stated this on Thursday while disclosing that over 2.5 million businesses had been brought for registration so far through this effort.
The Registrar-General was responding to the Managing Director of PalmPay Nigeria Ltd., Chika Nwosu, who visited him to present over 219,000 agents (small businesses) to him in Abuja.
Magaji said the provisions of the Companies and Allied Matters Act (CAMA) made it mandatory for any business taking place in Nigeria to register with the Corporate Affairs Commission.
“Section 863 (2) made it to the extent of criminalising any business taking place in Nigeria without registration.
“And in our drive to ensure compliance, we can force registration of small businesses of over 2.5 million so far this year alone.
“Today another company, PalmPay, is handing over 219,000 small businesses for registration.
"In other words, we are creating jobs for 219,000 youths.
“We agreed to regularise them to achieve the Renewed Hope Agenda of President Bola Tinubu, including job creation, financial inclusion, and access to wealth to the youth,” he said.
On the upsurge in the registration of small businesses, Magaji said there was a drive by the present administration to formalise small businesses into the system. He said the administration also aimed at increasing the tax net of the country and enabling the government to track the activities of the SMEs.
“The government will have the opportunity to track terrorism and money laundering. That’s the essence of the registration,” he added.
Earlier, the Managing Director of PalmPay expressed the desire of the company to partner with and support the commission to achieve its mandate of formalising the sector.
“Our business is one of the largest in Nigeria, with over 30,000 employees and over 30 million Nigerians doing business and using our application to do various transactions.
“We are ready to partner with the CAC and to support the government of Nigeria by introducing most of our agents who are doing business on our platform and using our POS.
“We have over 219,000 agents on our platform to hand over to CAC today,” Nwosu stated.
The News Agency of Nigeria (NAN) recalls that Moniepoint had brought in over two million businesses; Opay, over 300,000; and Kudimata, 30,000 businesses for registration.