THE CORPORATE AFFAIRS COMMISSION REGULATORY OVERSIGHT AND BUSINESS GROWTH INCENTIVES

Abstract

This study examines the effectiveness of Nigeria’s Corporate Affairs Commission (CAC) in balancing regulatory oversight with the need to promote business growth and investment incentives. The core objective of the study is to evaluate whether the regulatory powers and administrative practices of the CAC adequately ensure corporate accountability, transparency, and compliance without creating undue barriers to business formation and expansion. The research is driven by the problem of increasing regulatory demands and compliance costs which, while intended to strengthen corporate governance, may discourage entrepreneurship, particularly among small and medium-sized enterprises. Using a doctrinal research methodology, the study critically analyses the provisions of the Companies and Allied Matters Act 2020 as the primary legal framework governing corporate regulation and business operations in Nigeria. The findings show that CAC reforms under CAMA 2020, particularly digital registration and simplified post-incorporation filings, have improved efficiency, transparency, and investor confidence in Nigeria’s corporate system. However, regulatory rigidity, overlapping compliance requirements, and limited institutional capacity continue to restrict business growth and 
formalisation. The study recommends a more coordinated regulatory approach that combines enforcement with supportive measures. The CAC should strengthen public awareness programmes to help businesses, especially start-ups and small enterprises, understand their compliance obligations.