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What is NAFDAC?
NAFDAC is an acronym for National Agency for Food and Drug Administration and Control. It is a Nigerian federal agency under the Federal Ministry of Health that ensures the safety, efficacy, and quality of products for the well-being of the public. NAFDAC plays a critical role in safeguarding public health by enforcing standards and monitoring compliance with regulations.

The Law Establishing NAFDAC
NAFDAC was established by Degree 15 of 1993, amended by Decree 19 of 1999 and now the NAFDAC Act, Cap. N.1 LFN, 2004. The Act tasked the agency with the responsibility of regulating and controlling the manufacture, importation, exportation, advertisement, distribution, sale, and use of food, drugs, cosmetics, medical devices, chemicals, and bottled water.

Business Classification by NAFDAC

To remove significant bottlenecks that impede the registration process, the agency classified businesses into three main categories depending on employee count: Micro, Small, and Medium Enterprises (MSMEs). 

1. MICRO Enterprises – Less than 10 Employees 

2. SMALL Enterprises – 10-49 Employees 

3. MEDIUM Enterprises – 50-199 Employees

Products that can be Registered with NAFDAC
The categories of products that can be registered with NAFDAC are namely; Food (foods products & packaged water), Cosmetics (skincare & household products), Chemical (Pesticides, & bio- pesticides), and Drugs (drugs, herbal mix, biologics, & vaccines). It is mandatory to register any locally made or imported product that falls under any of these categories.

Documents Required for NAFDAC Registration      

1. CAC registration documents.

2. Trademark registration certificate. (optional) 

3. One vetting sample and three labels. 

4. List of raw materials and their sources

5. Certificate of analysis (optional) 

6. Fumigation certificate.

7.Medical fitness certificate (food production) 

Power of attorney and certificate of free sale (imported products)

Timeline for NAFDAC Registration
The timeline is typically ninety (90) working days for food products and one hundred and twenty (120) working days for drugs and other products. However, it may take longer than expected if NAFDAC regulations are not met or if the product lab test is unsuccessful.

Kindly note that, a product registration covers for only that product, but where the product have multiple sizes, NAFDAC allows for size pack extensions.

The proposed name is already in use by another registered entity, or is too similar to an existing registered business (CAC aims to avoid confusion and protect the identity of businesses).

The proposed name might contain restricted or prohibited words that may imply government affiliation, or professional qualifications. (words like: “Federal” “State” “Chartered” “Cooperative” “Group” unless the Commission consents)

Another possibility is that the proposed names may contain misleading terms, undesirable connotations, or offensive language that violate public policy standards.

The proposed names conflicts with an existing trademark registered in Nigeria (unless with the written
consent of the trademark owner or trustees)

The proposed names is capable of misleading as to the nature or extent of its activities, and capable of
undermining public peace and national security.

To avoid rejections, lets help you check the availability of your proposed business name, or suggest alternative names that adhere to CAC guidelines.

Filing annual return is a mandatory annual exercise for every company, business name or incorporated trustees, registered with Corporate Affairs Commission. It is the only way to tell the commission that your business is still a going concern, meaning you are still in existence and operation.

What Would Happen If You Don’t File Annual Returns?
1. CAC would declare your company inactive and subsequently delist it from the Nigerian Corporate Register.

2. You cannot carry out any post incorporation filing.
3. It can affect the business access to credit.

Are CAC Annual Returns different from Tax filing?
1. YES! Tax is very different from CAC Annual Returns

2. Tax is a civil obligation, and the regulatory body is Federal Inland Revenue Service (FIRS)

How Much Does it Cost?
The CAC Annual Returns fee is paid annually;
1. If you are not in default: N5,000

2. If you are in default: N10,000

What if since you registered a business name or company, you have not done any business through it; do you have to still file annual returns?
YES!

Who is a Minor?
A minor is a person below the Ilegal age of majority or adulthood in their state or territory. The Constitution of the Federal Republic of Nigeria defines a minor or child as one who has not attained the age of eighteen (18).

Minor as a Shareholder
By virtue of the provisions of CAMA 2020, a minor can be a shareholder, i.e., own shares in a company. However, this is only permitted on the condition that two adults have subscribed to the shares of the company.

Kindly note that, under CAMA, a minor cannot be a director of a company.