Per the Companies and Allied Matters Act (CAMA) 2020, leading fintech company PalmPay has teamed up with the Corporate Affairs Commission (CAC) to register 219,000 small businesses, aiming to bolster Nigeria’s economy.
In a recent press briefing in Abuja, Hussaini Magaji, the Registrar-General of CAC, highlighted that the initiative aligns with the commission’s target to register over 20 million small businesses by 2024.
Magaji emphasized the significance of enforcing business registration laws, stating that PalmPay Nigeria Limited is facilitating the registration of 219,000 small businesses, legitimizing their operations and creating jobs for youths.
Managing Director of PalmPay, Chika Nwosu, reiterated the company’s commitment to supporting the government in growing the economy. He emphasized PalmPay’s role in driving financial inclusion since obtaining a mobile money operator (MMO) license in 2019.
World Bank data underscores the importance of small businesses, which represent about 90% of businesses globally and contribute significantly to employment and GDP, particularly in emerging economies like Nigeria.
PalmPay, known for its secure digital payments, offers digital financial tools like the PalmPay Business app and Point of Sales (POS) machines to help small businesses scale and increase revenue. Over 40 million Nigerians, equivalent to 1 in 5, rely on PalmPay’s network for monthly shopping and utility payments.
In 2023, PalmPay’s cashless payment ecosystem processed up to 15 million daily transactions and $6 billion in monthly transaction value, boasting a high user retention rate of 75%.
The partnership between CAC and PalmPay to register 219,000 small businesses is seen as pivotal to Nigeria’s economic growth, with the potential to reduce poverty levels and stimulate economic activity.
