Mr Hussaini Magaji, Registrar General of the Corporate Affairs Commission (CAC), has explained why many businesses fail in the country.
Magaji, who was represented by the CAC’s Director of Compliance, Justine Nidia, said most businesses fail due to poor planning and management during the 2023 CAC Management Retreat in Keffi, Nasarawa State.
The theme of the event was “The Role of the Corporate Affairs Commission in Promoting Investment and Economic Development.”
According to Magaji, “available statistics show that 20% of new businesses fail in the first two years, 45% fail in the first five years, and 65% fail in the first ten years.”
“Only 25 per cent of new businesses survive for 15 years and above. This is usually due to poor planning and management. Going forward, therefore, it is expected that the commission will ensure proper management of businesses to avoid mortality rates.”
Magaji said the CAC would ensure seamless registration of new businesses and support new businesses to become multinational corporations.
He said the vision of the CAC was to be a world-class registry, adding, “We have witnessed registry operations move from manual to semi-automation, full automation and now to online operations.
“Future operations of the registry is expected to be cloud and artificial intelligence-based. We should therefore strive hard to invent and reinvent ourselves as individuals and organisations to avoid becoming obsolete.”
