Banks routinely flag accounts for reasons that have nothing to do with wrongdoing, such as a Bank Verification Number mismatch, a Corporate Affairs Commission (CAC) detail that no longer matches your registration, unusual transaction patterns, or a routine Central Bank of Nigeria compliance check. Start by visiting your branch or calling the bank's compliance line to ask for the specific reason in writing, then supply whatever documentation they request.
Several Nigerian levies are based on turnover, presumptive estimates, or fixed minimums rather than actual profit, so a demand can arrive even in a slow year. Compare the assessment against your filed returns, request a breakdown from the relevant tax office, and file an objection with supporting records if the figure looks estimated rather than calculated from your books.
You can technically move money through a personal account, but once your business is registered with CAC, mixing funds this way blurs the line between you and the company and makes bookkeeping, tax filing, and dispute resolution harder to defend. A dedicated business account keeps the registered entity's finances traceable and protects you if a transaction is ever questioned.
An outdated CAC record, whether it's your address, directors, or business activity, can cause problems with banks, tax authorities, and regulators who cross-check that information. File the appropriate post-incorporation update with CAC as soon as details change so your certificate and public record stay accurate.
This should be avoided. Once a payment lands in an employee's personal account, the business loses direct proof of receipt, and recovering funds becomes far harder if the employee disputes it or leaves. Route all customer payments through business-owned accounts or a POS terminal registered to the business, and treat any exception as a policy breach.
Money sent in error is not yours to keep; under Nigerian law an unintended transfer is treated as unjust enrichment, and knowingly withholding it can expose the business to legal and reputational risk. Notify the sender or their bank promptly and reverse the transaction through your bank's standard erroneous-transfer process.
Nigerian labour law restricts unilateral salary deductions; you generally need the employee's written consent, a clear contractual clause, or proof of negligence established through a fair internal process before deducting missing cash from pay. Deducting without following due process can itself become a labour dispute.
Yes, a registered company can trade under a different name, commonly called a business name or "trading as" name, but that name should ideally also be registered with CAC to avoid disputes over ownership and to keep contracts, invoices, and tax records consistent with the entity actually doing business.
Government demolition, usually tied to urban planning or a contested title, does not automatically end your business or its obligations. Keep proof of your prior occupancy and any notices received, check whether the demolition followed due process, and consult a property lawyer about compensation before relocating operations and updating your registered address with CAC.
Many small businesses legally operate from home, but this depends on your state's land use and zoning rules, your tenancy agreement if you rent, and the nature of the business, since some activities require a commercial address for licensing. Check your local government's requirements before listing a residential address on official filings.
Payment providers and payment gateways often place holds for fraud checks, chargebacks, or compliance reviews, which can freeze cash flow without warning. Read the provider's settlement and dispute terms, respond quickly to any verification requests, and keep an alternative payment channel so a single provider's hold cannot stall the whole business.
Whether a deposit is refundable usually comes down to what was agreed at the time of sale. A clearly stated non-refundable deposit policy, shown before payment, generally holds up, but silence on the issue tends to favor the customer in a dispute. Put your refund and cancellation terms in writing on receipts and order forms.
Delivery-service tracking with a timestamped signature or photo, a rider's proof-of-delivery confirmation, or a customer's own message acknowledging receipt all serve as evidence in a dispute. Building a habit of requesting a quick delivery confirmation, even a photo at the doorstep, protects the business if a customer later claims non-delivery.
Once another entity's name is approved by CAC, that name is generally unavailable to you, and continuing to use it can expose your business to a legal challenge over passing-off or trademark conflict. Search CAC's name availability portal before you start trading, and register your preferred name early rather than building a brand around it first.
Unrecognised figures can stem from a filing error, a duplicated assessment, or fraudulent use of your Tax Identification Number. Request an official statement of account from the tax authority, cross-check it against your own filed returns and receipts, and formally query any discrepancy in writing rather than paying an amount you can't verify.
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Chisom Assumpta is a legal professional and corporate virtual assistant dedicated to empowering Nigerian startups, SMEs, and diaspora investors. With a strong background in law, she bridges the gap between complex regulatory requirements and practical business execution.
Through BusinessPilot, she publishes practical, easy-to-understand guides on business registration, regulatory compliance, entrepreneurship, and business growth in Nigeria. Her mission is to help entrepreneurs make informed decisions, remain compliant, and build successful businesses with confidence.
The information on BusinessPilot is provided for general informational and educational purposes only. While we strive for accuracy, we do not guarantee that all information is complete or up to date.
BusinessPilot is an independent website and is not affiliated with or endorsed by the Corporate Affairs Commission (CAC) or any government agency. Always verify official information before making business decisions.
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A fashion business based in Ikeja, Lagos, spent three years building its primary sales channel on a single mobile number. The number appeared on printed receipts, outdoor banners, and the business's Instagram bio. Customers saved it as the official store contact. Orders were taken, payments confirmed, and deliveries arranged through WhatsApp Business using that line. Airtime and data bundles were paid directly from the company's bank account. When the lead sales representative resigned, she took the SIM card with her. The owner assumed the line belonged to the business. After all, the firm purchased the SIM card, funded its usage for thirty-six months, and generated every customer interaction attached to it. However, when the owner attempted to request a SIM replacement at an MTN service center, the request was rejected. The line had been registered in the employee's name using her personal National Identification Number (NIN) during her first week at work. ...
