Survey reveals low compliance with business registration law
A survey carried out by the National Bureau of Statistics(NBS), in conjunction with the Small and Medium Enterprises Development Agency of Nigeria(SMEDAN), has shown that large number of businesses, cutting across many sectors are not duly registered with the Corporate Affairs Commission(CAC).
According to the survey on business registration by sector, published in the Micro Small and Medium Enterprises(MSMEs) 2013 report, these lapses also indicate channels of revenue leakage within the nation’s corporate governance system.
For instance, in the agriculture sector, total number of registered partakers are 77,053 or 2.33 per cent, whereas as much as 3,223,726 or 97.67 per cent were unregistered players in the sector.
In the mining and quarrying sector, the report showed that 9,562 or 13.57 per cent were registered to participate in that sector, but 60,881 or 86 per cent players were unregistered active participants.The same goes with the food services and accommodation sector where 69,022 or 2.88 per cent were duly registered, but 1,970,495 or 97.12 per cent others were not registered.
In the transportation and storage sector as well, the survey showed that 77,773 or 4.44 per cent were duly registered with the CAC, whereas as many as 1,683,159 or 95.56 per cent others who taking part in the sector were not registered. In the wholesale and retail sector,729,255 or 4.44 per cent of participants were registered but 19,495,372 or 96.50 per cent were not statutorily on CAC’s list.
The story was the same at the administration and and support services sector which has 23,217 or 6.39 per cent registered players, but with as many as 190,507 or 93.61 per cent of non registered players in that sector.
In the manufacturing sector, there were only 173,213 or 3.54 per cent registered players, whereas 4,714,181 or 96.46 per cent of non registered players were existing, according to the survey.
In the information and communications sector, 45,691 or 13.61 per cent of registered players were known to exist formally, but 289,913 or 86.39 per cent of non-registered players were known to exist underground. The same goes with the education sector which has 28,532 or 27.32 per cent registered players, whereas 289,913 or 86.38 per cent of non-registered players were known to exist, going by the survey.
In the sewerage, waste management and remediation activities, only 739 or 9.39 per cent are duly registered,whereas 7,136 or 90.61 per cent underground players were known to exist going by the survey.
In the arts, entertainment and recreation sector, 65,379 or 9.44 per cent of participants were registered, whereas 325,230 or 90.56 per cent of unregistered players were known to exist.
Similarly, in the construction sector, 48,843 or 6.68 per cent of players are registered duly, while 682,459 or 93.32 were unregistered players.