The Corporate Affairs Commission (CAC) has been engulfed in fresh allegations of large-scale extortion and abuse of office following claims that it compelled fintech companies to collect inflated business registration fees from hundreds of thousands of small business owners nationwide.
According to an investigation by Sahara Reporters, the allegations centre on claims that the CAC, under the leadership of its Registrar-General, Hussaini Ishaq Magaji, SAN, directed major fintech platforms including Moniepoint, OPay and PalmPay to enforce compulsory business name registration on PoS operators and small merchants at rates far above the government-approved fee.
ALSO: CBN Revokes Licences of Aso Savings, Union Homes Over Regulatory Breaches
Sources within the CAC, the fintech ecosystem and the small business community told Sahara Reporters that more than 300,000 micro and small business owners were allegedly forced to pay ₦20,000 each for business name registration, despite the official CAC fee at the time being ₦10,500. The reported ₦9,500 difference per registration, the report said, was allegedly diverted to a private consultant allegedly handpicked by the Registrar-General.
“At the centre of the scheme is a consultant personally nominated by the Registrar-General, through whom all registrations were allegedly routed,” Sahara Reporters quoted a source as saying, adding that the arrangement raised serious concerns about abuse of office, extortion and possible criminal conspiracy.
Fintechs Allegedly Turned Into Enforcement Tools
Multiple insiders told Sahara Reporters that fintech companies were effectively transformed into enforcement agents, with instructions to ensure that PoS operators on their platforms registered with the CAC or risk suspension or shutdown. Many operators reportedly paid the ₦20,000 fee believing it was an official government charge, without being informed of the lower statutory rate.
A CAC source told Sahara Reporters that under the arrangement, Magaji allegedly received ₦3,500 per registration processed. With over 300,000 registrations reportedly completed, the total sums involved were said to run into billions of naira.
Further allegations cited by Sahara Reporters include claims that the Registrar-General acquired luxury vehicles worth hundreds of millions of naira within a short period, intensifying scrutiny around his personal finances.
Petition Filed, Calls for Probe Grow
The controversy has triggered formal action. The Concerned Staff Forum reportedly petitioned the Code of Conduct Tribunal in August 2025, accusing Magaji of abuse of office, financial impropriety and other misconduct. The petition, seen by Sahara Reporters, also alleged irregular travel expenses and called for investigations by the National Assembly, the EFCC and the ICPC.
The group further demanded full disclosure of all agreements between the CAC and fintech companies, as well as transparency around consultant contracts and procurement processes.
Magaji Denies Wrongdoing
Responding to the allegations, Magaji denied any impropriety, insisting that the initiative was driven by legal and security considerations. Speaking to Sahara Reporters, he said PoS operations are governed by CBN Agent Banking Regulations, which require operators to be registered entities.
“Our law clearly states that no business can operate without registration,” Magaji said, adding that CAC opted to regularise unregistered operators rather than impose penalties.
He also dismissed claims of inflated fees, stating that CAC reviewed its charges in mid-2024. “Officially, the current registration fee is ₦20,000, plus a ₦5,000 availability check. This is the approved CAC rate,” he said.
Magaji further explained that additional charges imposed by fintech platforms were private service fees determined by third-party service providers, not the CAC. “As long as CAC receives its official fee, that is all we are concerned with,” he told Sahara Reporters.
He maintained that the scheme was supported at high levels of government and stressed that registering PoS operators was crucial for security, noting that unregistered terminals had been linked to ransom payments and other crimes.
Despite the denials, pressure continues to mount for an independent probe, as critics argue that transparency is critical to restoring trust in Nigeria’s business registration system especially at a time when millions of small businesses are struggling to survive economic hardship.
Comments 1