In a recent development, the Corporate Affairs Commission (CAC) has made a noteworthy reversal in its stance regarding the mandatory minimum paid-up capital for companies with foreign involvement operating in Nigeria. This significant change was communicated through a circular shared on the official X account of the commission last Friday.
The initial requirement, which mandated a minimum paid-up capital of N100 million for companies with foreign participation, was based on the Federal Ministry of Interior Handbook on Expatriate Quota Administration 2022 Revised Edition. However, the CAC has now disavowed its earlier notice titled “Minimum Paid-Up Capital for Companies with Foreign Participation.” The commission clarified that the initial notice, which referenced paid-up capital instead of issued capital, was issued in error.
In a statement signed by the management of the CAC, customers and the general public were advised to disregard the earlier notice. The commission assured stakeholders that a revised notice would be issued in due course to provide clarity on the requirements for companies with foreign participation.

This unexpected reversal follows the commission’s earlier announcement on Tuesday, where it revealed the implementation of a new mandate requiring companies with foreign involvement to maintain a minimum paid-up capital of N100 million. This revelation was part of the commission’s efforts to align with the provisions of its Revised Handbook on Expatriate Quota Administration for the year 2022.
According to the statement released earlier in the week, the CAC emphasized its commitment to enforcing the requirement of N100 million as the minimum paid-up capital for companies with foreign participation. Any application for the incorporation of a company with foreign involvement would not be processed unless it complied with this stipulated capital requirement.
It is worth noting that this recent adjustment marks a significant departure from the previous minimum paid-up capital requirement for foreign companies seeking to operate in the Nigerian market, which stood at N10 million. The sudden and unexpected change in the regulatory stance has stirred discussions within the business community and raised questions about the rationale behind the initial decision and its subsequent reversal.
As the business landscape continues to evolve, companies and stakeholders will be eagerly awaiting the forthcoming amended notice from the CAC. This revised notice is expected to provide clarity on the capital requirements for companies with foreign participation, shedding light on the commission’s regulatory framework and its alignment with the evolving economic landscape. Infostride News will keep a close eye on developments related to this matter and provide updates as they unfold.
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