Per the Companies and Allied Matters Act (CAMA) 2020 provisions, the Corporate Affairs Commission (CAC) has partnered with leading fintech company PalmPay to register 219,000 small businesses to boost Nigeria’s economy.
In a press briefing announcing the initiative recently in Abuja, the Registrar-General of CAC, Hussaini Magaji, said the exercise aligned with the commission’s target to register more than 20 million small businesses by the end of 2024.
“To enforce the law mandating business registration, today, Palmpay Nigeria Limited is handing over 219,000 small businesses for registration to the Corporate Affairs Commission (CAC), thereby legitimising and regularising and creating jobs for 219,000 youths,” according to the Registrar-General.
Also speaking, the Managing Director of PalmPay, Chika Nwosu, reassured of the fintech company’s readiness to partner with the CAC to support the government to grow the economy, adding that millions of Nigerians subscribe to PalmPay.
“Since we registered under a mobile money operator (MMO) license in 2019, PalmPay has always remained committed to driving financial inclusion in Nigeria and helping to grow the country’s economy. Partnering with the federal government through the CAC expresses that commitment,” Mr Nwosu said.
Big on secure digital payments, PalmPay offers digital financial tools to help small businesses scale and grow their revenue such as PalmPay Business app and Point of Sales (POS) machines for business owners to collect payments from customers.
More than 40 million people, representing 1 in 5 Nigerians, trust PalmPay’s network to shop and pay for utilities monthly. This number represents the number of people who have accessed PalmPay services through its secure and seamless smartphone apps or merchant and agent networks.
As of 2023, PalmPay’s cashless payment ecosystem processed up to 15 million daily transactions and $6 billion monthly transaction value, earning it one of the highest retention rates in the market, with 75% of users returning every month to transact.
World Bank data states that small businesses represent about 90% of businesses and more than 50% of global employment, with formal SMEs contributing nearly 50% of the Gross Domestic Product (GDP) of emerging economies like Nigeria.
The initiative by the CAC and PalmPay to register 219,000 small businesses is pivotal to Nigeria’s economic growth at this critical time, including reducing poverty levels. It is expected that the partnership will help boost the economy.
