The Corporate Affairs Commission (CAC) has suspended the new minimum paid-up capital requirement for companies with foreign participation.
The decision, announced on Friday via X, is coming three days after it released a directive dated December 5, 2023, where it raised the capital requirement from N10m to N100m.
But in a twist, the commission reversed its decision citing a mix-up of a section of the Federal Ministry of Interior Handbook on Expatriate Quota Administration 2022 Revised Edition.
The CAC said, “Our dear esteemed customers and the general public are hereby advised to disregard our earlier issued notice titled ‘Minimum Paid-Up Capital for Companies with Foreign Participation’
“Our initial notice with reference to paid-up capital rather than issued capital was based on the Federal Ministry of Interior Handbook on Expatriate Quota Administration 2022 Revised Edition, as indicated on page 5.
“We shall issue an amended notice with regards to the above in due course.”
The earlier notice released by the CAC said any application for incorporation of a company having foreign participation will not be processed unless it complies with the N100m minimum requirement.
The directive also mandated existing companies with foreign participation that have less than N100m paid-up capital to ensure compliance with the new requirement not later than six months from the date of this notice.
CAC added, “The Commission shall commence proceedings for the compulsory winding-up of the Companies under Section 571 (e) of the Companies and Allied Matters Act 2020.”