NBA Urges CAC To Reconsider Its Decision Over Payment Of Re-Validation Of Existing Users

Says The Obligatory Charge Imposed By The Cac Should Not
Apply To Existing Users
SaysTaskforce Indicate That In Spite Of Its Engagement With The
CAC, The Service Levels Are Still Abysmal

The Nigerian Bar Association has berated the Management of
Corporate Affairs Commission over the payment of N10,000 as a
re-validation fee of accredited agents without due
consultation.

The president of the Association, Olumide Akpata, made this
disclosure on Friday while reacting to the directives from the
Commission that lawyers should pay the said sum before they can
have access to the CAC’s Portal.

According to the President, the Commission should have asked the
previously accredited agents to simply update and revalidate
their records on the CAC portal without cost or lose their
accreditation.

TheNigerialawyer recalls that CAC had yesterday directed that
all accredited agents will pay the sum of 10,000 annually for
re-validation and later today rescinded the decision.

Read his full statement below.

CAC DIRECTIVE ON RE-VALIDATION OF ACCREDITED AGENTS:

THE POSITION OF THE NIGERIAN BAR ASSOCIATION

The attention of the Nigerian Bar Association (“NBA”) has been
drawn to a directive credited to the Registrar-General of the
Corporate Affairs Commission (“CAC”) to the effect that accredited
agents of the CAC, including lawyers, are to revalidate their
status as agents with the CAC and pay the sum of Ten Thousand Naira
(₦10,000), failing which the defaulting agents may be unable to
access the CAC’s Portal.

Since the news broke out, the NBA has been engaging with the CAC
on this subject. The ostensible reason given by the CAC for this
directive is to checkmate the spate of proxy interactions with the
Portal and to weed out from the CAC’s Database, accredited agents
who are either now deceased or have emigrated out of the country
and/or changed their location.

Whilst this objective may be well-intended, the position
of the NBA on the issue is as follows:

1. The NBA takes the view that it is both insensitive and
smacks of utter bad faith on the part of the CAC to proceed with
this policy without due consultation with the NBA whose members
make up over 80% of the customer base of the CAC. This is in spite
of the fact that the NBA-CAC Task Force has been in constant touch
with the CAC regarding improving efficiency and processes at the
CAC.

2. While we appreciate that following engagements with the
CAC, the Commission has extended the deadline from 31st March 2021
to 10th June 2021 and has also clarified that the payment will be a
one-off fee, the NBA remains of the view that it is possible to
achieve a clean database of accredited agents by requiring those
who had been previously accredited by the CAC to simply update and
revalidate their records on the CAC portal (at no cost) or lose
their accreditation by the new deadline. The obligatory charge
imposed by the CAC should not apply to existing users but only to
those customers who have never been accredited by the CAC and who
now seek to be part of the system.

3. The NBA is deeply concerned about the timing of this
policy, which is coming at a time when many lawyers have endured
epileptic services from the CAC and have either lost the faith of
their clients or have been de-briefed by clients who believe that
the lawyers treat their instructions with levity.

This state of affairs is what has led to the establishment
of the NBA-CAC Taskforce to facilitate regular interface with the
CAC in resolving issues associated with its services. Available
reports from the Taskforce indicate that in spite of its engagement
with the CAC, the service levels are still quite abysmal.

4. The NBA strongly urges the CAC to reconsider its position
with respect to the payment of the revalidation fee by existing
users, and more importantly to continue to work assiduously towards
improving customer experience by resolving the several complaints
by users of the system and enhancing efficiency. Resolving these
issues will not only be beneficial to the CAC and its customers but
will significantly advance the Federal Government’s Policy on Ease
of Doing Business in Nigeria.

Members of the NBA can be assured that we will continue to
engage the CAC on these and other related issues that affect their
dealings with the Commission.

OLUMIDE AKPATA
NBA PRESIDENT
12th March, 2021

Says The Obligatory Charge Imposed By The Cac Should Not
Apply To Existing Users
SaysTaskforce Indicate That In Spite Of Its Engagement With The
CAC, The Service Levels Are Still Abysmal

The Nigerian Bar Association has berated the Management of
Corporate Affairs Commission over the payment of N10,000 as a
re-validation fee of accredited agents without due
consultation.

The president of the Association, Olumide Akpata, made this
disclosure on Friday while reacting to the directives from the
Commission that lawyers should pay the said sum before they can
have access to the CAC’s Portal.

According to the President, the Commission should have asked the
previously accredited agents to simply update and revalidate
their records on the CAC portal without cost or lose their
accreditation.

TheNigerialawyer recalls that CAC had yesterday directed that
all accredited agents will pay the sum of 10,000 annually for
re-validation and later today rescinded the decision.

Read his full statement below.

CAC DIRECTIVE ON RE-VALIDATION OF ACCREDITED AGENTS:

THE POSITION OF THE NIGERIAN BAR ASSOCIATION

The attention of the Nigerian Bar Association (“NBA”) has been
drawn to a directive credited to the Registrar-General of the
Corporate Affairs Commission (“CAC”) to the effect that accredited
agents of the CAC, including lawyers, are to revalidate their
status as agents with the CAC and pay the sum of Ten Thousand Naira
(₦10,000), failing which the defaulting agents may be unable to
access the CAC’s Portal.

Since the news broke out, the NBA has been engaging with the CAC
on this subject. The ostensible reason given by the CAC for this
directive is to checkmate the spate of proxy interactions with the
Portal and to weed out from the CAC’s Database, accredited agents
who are either now deceased or have emigrated out of the country
and/or changed their location.

Whilst this objective may be well-intended, the position
of the NBA on the issue is as follows:

1. The NBA takes the view that it is both insensitive and
smacks of utter bad faith on the part of the CAC to proceed with
this policy without due consultation with the NBA whose members
make up over 80% of the customer base of the CAC. This is in spite
of the fact that the NBA-CAC Task Force has been in constant touch
with the CAC regarding improving efficiency and processes at the
CAC.

2. While we appreciate that following engagements with the
CAC, the Commission has extended the deadline from 31st March 2021
to 10th June 2021 and has also clarified that the payment will be a
one-off fee, the NBA remains of the view that it is possible to
achieve a clean database of accredited agents by requiring those
who had been previously accredited by the CAC to simply update and
revalidate their records on the CAC portal (at no cost) or lose
their accreditation by the new deadline. The obligatory charge
imposed by the CAC should not apply to existing users but only to
those customers who have never been accredited by the CAC and who
now seek to be part of the system.

3. The NBA is deeply concerned about the timing of this
policy, which is coming at a time when many lawyers have endured
epileptic services from the CAC and have either lost the faith of
their clients or have been de-briefed by clients who believe that
the lawyers treat their instructions with levity.

This state of affairs is what has led to the establishment
of the NBA-CAC Taskforce to facilitate regular interface with the
CAC in resolving issues associated with its services. Available
reports from the Taskforce indicate that in spite of its engagement
with the CAC, the service levels are still quite abysmal.

4. The NBA strongly urges the CAC to reconsider its position
with respect to the payment of the revalidation fee by existing
users, and more importantly to continue to work assiduously towards
improving customer experience by resolving the several complaints
by users of the system and enhancing efficiency. Resolving these
issues will not only be beneficial to the CAC and its customers but
will significantly advance the Federal Government’s Policy on Ease
of Doing Business in Nigeria.

Members of the NBA can be assured that we will continue to
engage the CAC on these and other related issues that affect their
dealings with the Commission.

OLUMIDE AKPATA
NBA PRESIDENT
12th March, 2021