In today’s fast-evolving Nigerian business environment, compliance is more than a box to tick — it’s a safeguard for your company’s credibility, continuity, and long-term success. Yet, many businesses — from startups to established firms — fall into simple but costly compliance traps.
At AppyLaw, we break down these common mistakes and show how to avoid them — so your business stays protected, profitable, and legally sound.
🧾 1️⃣ Failure to File Annual Returns
Under Section 417 of the Companies and Allied Matters Act (CAMA) 2020, every company must file annual returns with the Corporate Affairs Commission (CAC).
Ignoring this can lead to fines, deregistration, or even being labelled “inactive” by CAC — a red flag for investors and banks.
How to Avoid It:
Mark annual filing dates in your compliance calendar or engage a law firm to handle periodic filings on your behalf.
💼 2️⃣ Operating Without Updated Business Licences
Many SMEs forget that incorporation is not enough — specific industries (e.g., fintech, logistics, food production) require additional regulatory licences.
How to Avoid It:
Identify all sector-specific regulators — such as NAFDAC, CBN, NCC, or SEC — and ensure renewals are done annually.
🔒 3️⃣ Ignoring Data Protection Obligations
The Nigeria Data Protection Act (NDPA) 2023 and NDPR Regulations mandate every business that collects personal data to implement strict data handling and reporting standards.
Failure to comply can attract penalties up to ₦10 million or more for corporate bodies.
How to Avoid It:
Adopt a privacy policy, train staff on data handling, and file your annual data audit with the Nigeria Data Protection Commission (NDPC).
🤝 4️⃣ Poor Record Keeping & Corporate Governance
A well-structured company maintains accurate minutes, shareholder registers, and board resolutions.
When these are missing, disputes over ownership or control become inevitable.
How to Avoid It:
Keep proper books, appoint a company secretary, and adopt standard governance templates from trusted legal professionals.
🧾 5️⃣ Tax & Financial Non-Compliance
Tax laws change frequently, and ignorance is not a defence. Many businesses fail to remit Withholding Tax (WHT) or Value Added Tax (VAT) promptly, leading to penalties.
How to Avoid It:
Engage tax consultants and lawyers to ensure your company meets all obligations under the Federal Inland Revenue Service (FIRS) and State Revenue Boards.
💡 Final Thoughts
Compliance may seem daunting, but it’s a cornerstone of business longevity. A single oversight can undo years of hard work.
At KpLaw LLP, our Corporate Advisory Team works with clients to ensure full regulatory compliance and risk management.
👉 Visit www.appylaw.com/blog/ for more business law insights.
✍️ Written by KpLaw LLP for AppyLaw — Simplifying Law for Everyday Nigerians.
📩 For compliance support, email kplawllp@gmail.com