In response to the Company and Allied Matters Act 2020, the Corporate Affairs Commission (CAC) has issued a directive calling upon social media influencers, Instagram users, and TikTok creators with significant followings to formally register their enterprises with the commission.
This move comes amidst reports indicating that the Federal Inland Revenue Services (FIRS) is gearing up to incorporate influencers and media content creators into its tax system.
The call was made by the Registrar of the CAC during a meeting with the Managing Director of Opay, Dauda Gotring, and his team in Abuja.
Addressing the issue, the head of CAC, Magaji, highlighted the substantial revenue being generated by social media and content creators without corresponding tax contributions to the federal government.
Magaji emphasized, “Ignorance of the law is not an excuse. It is stipulated in the Company and Allied Matters Act 2020 that any business conducted in Nigeria, regardless of whether it is operated under one’s name or an alias, must undergo formal registration.”
He continued, “If you are a content creator on the internet with a significant following and are earning revenue from it, registration is mandatory according to the provisions of the law.”
Magaji further underscored the commitment of the government to enforce compliance with the law and its associated penalties. He stressed that the current situation, where certain business entities operate without proper registration, cannot be allowed to persist.
“These groups of people are obligated to register their businesses considering the substantial income they generate from content creation. The government is determined to ensure that every business operating in Nigeria, regardless of its nature or scale, is registered with the CAC,” Magaji affirmed.
