The Corporate Affairs Commission (CAC) has reportedly refrained from approving a start-up registration application. The reason being presented by the CAC is as follows:
Blockchain is yet to be recognized by the Nigerian government, kindly expunge.
CryptoAssetBuyer reports the start-up in question was developing a blockchain gaming rewards’ API (Application Programming Interface) connection. But, the start-up was advised that the CAC will only proceed with the application process following a resolution of the blockchain technology reference is materialized.
The CAC didn’t allow registering a blockchain company against an application submitted on 10 October 2021 via the CAC’s digital platform. Subsequently, the CAC’s decision isn’t well-received by the Nigerian blockchain community. The blockchain start-up’s incubator Convexity’s COO Mr. Adedeji Owonibi expresses discontent on the matter.
Per CryptoAssetBuyer, Mr. Owonibi states the onus in Nigeria to implement the draft National Blockchain Adoption Strategy also rests on the CAC.
Mr. Owonibi posted the following on Tuesday 19 October 2021 on LinkedIN:
I can’t believe we have this level of ignorance in govt circle, at least not the agency saddled with company registration in Nigeria. The staff that queried this application for company registration on the pretence that blockchain is not approved by the Nigerian Govt need to be educated immediately for ease of doing business to improve in Nigeria.
Charles Okaformbah, Co-Founder & CTO, Convexity, tagging the Vice-President of Nigeria, Prof. Yemi Osinbajo, expressed this on LinkedIN:
Your Excellency, Prof. Yemi Osinbajo, we can’t get to where we want to be in other to drive the digital economy if we can’t even register a company as Blockchain-focused. This is one of the reasons local startups are running away from registering their blockchain companies here in Nigeria. Blockchain is not all about Cryptocurrencies as there are lots of creative solutions that are applicable to resolving some of our societal issues from finance, art, ownership, tokenization, gaming, etc. This is a great disservice from the Corporate Affairs Commission to the ease of doing business and will pull us back further if it is allowed to hold. Convexity wouldn’t mind having a pro bono class on Blockchain for those handling the affairs and making decisions at the Commission.