The New CAMA Rules Every Nigerian Business Should Know in 2025

If you run a business in Nigeria, you probably already know that CAC updates don’t always make noise. They just land one morning, the same way harmattan breeze announces itself without greeting anybody. The funny thing is: the rules themselves are not the problem, it’s the confusion around them.

Sometime in January, a friend who sells beauty products in Ilorin called me. She said her “business was showing inactive.” I thought she meant sales were slow. No, CAC had labelled her company inactive simply because she skipped Annual Returns for two years. She didn’t even know that missing just one year could quietly push her company into “ghost mode.”

That’s when I realised a lot of SMEs are walking around with compliance landmines without knowing it. So here’s the gist, not the legal jargon, just the practical things that have changed under CAMA and why they matter in real life.

The New Pressure on Annual Returns

This one is not exactly new, but the enforcement is new. CAC now checks Annual Returns properly. If you skip it, they don’t send a threatening letter, your business is simply tagged inactive. And once that happens, banks, grant bodies, and even big clients see you as unserious.

What I tell people now is simple: file AR early. Filing late is like entering Third Mainland during peak traffic, you will regret it.

Ownership Transparency Is No Longer Optional

Most Nigerians like to “keep things coded,” especially when it comes to the real owners of a company. But CAMA doesn’t allow that again.

The disclosure of Persons With Significant Control (PSC) is now a serious compliance point. If someone owns a big chunk of your company, CAC wants their details. No hiding behind cousins, no hiding behind shell companies.

It’s actually helpful, when investors or partners see clean ownership, discussions move faster.

Everything Is Going Digital, Whether You Like It or Not

The CAC portal has become the main road. In 2025, manual filings are disappearing quietly. Digital signatures are now fully recognised, and CAC is using an automated rejection system.

Meaning:

If your document is inconsistent…

If your director’s name has two different spellings…

If your address is different from what you filed last year…

The portal will bounce it back faster than a POS operator responding, “Network no dey.”

But the lucky part? When you get it right, approvals now happen surprisingly fast.

Small Companies Have More Freedom, But People Still Don’t Know

The rules for small companies have relaxed a lot. Truth is, many SMEs are spending money on compliance they don’t actually need.

For example:

You can run a one-person company.

Some companies don’t need AGMs.

A company secretary isn’t compulsory for certain categories.

But once your business outgrows that “small” definition, everything changes. And ignorance won’t save you from penalties.

Record-Keeping Is Becoming a Serious Matter

In Nigeria, people keep business records the same way they keep old NEPA bills, scattered everywhere. But CAMA 2025 doesn’t tolerate that anymore.

A logistics founder I know almost lost a foreign partnership because his CAC address didn’t match his tax records. The foreigners assumed he was hiding something. It took two weeks of explaining to calm things down.

Point is: inconsistent records can cost you opportunities.

Change Something? Update It. Immediately.

Many Nigerians change directors, addresses, shareholders, or business activities and just say, “We’ll update it later.”

Later has finished. CAC now expects updates quickly.

If there’s a dispute tomorrow, the only truth the law recognises is the one on CAC’s portal. Not your WhatsApp chats. Not your gentleman agreement. Not your “we all know the arrangement.”

Business Names Are Still Being Misused

A lot of people still operate a business name as if it’s a full limited liability company.

Some even add “Ltd” by force. CAC is catching this more often in 2025. If you’re expanding, it’s better to convert to an LLC. It opens more doors.

So, What Should You Actually Do?

Nothing too dramatic:

• File your Annual Returns early.

• Clean up your records.

• Keep your PSC details updated.

• Use the upgraded CAC portal properly.

Update changes as soon as they happen. And if you’re scaling, consider moving from a business name to LTD.

This way, you avoid penalties and present your business as credible, not just to CAC, but to anyone who might want to work with you.

Final Word

CAMA isn’t against small businesses. Many of the new rules actually make things easier, if you understand them. But compliance is like personal hygiene: you don’t notice the value until something embarrassing happens.

Stay updated, stay clean, and your business will thank you later.