Nigerians have expressed outrage following revelations that the Corporate Affairs Commission (CAC) approved controversial business names such as “Boko Haram Training Hub,” “Nigeria Must Scatter Enterprises,” and others through its newly launched AI-powered registration platform. Critics argue that the system sacrifices oversight and sound judgment for speed and automation.
The controversy emerged after the CAC introduced its Intelligent Company Registration Portal (ICRP 3.0) on July 1, 2025. The platform promises to process business registrations within 30 minutes, aiming to simplify business incorporation, particularly for startups and small to medium enterprises (SMEs).
According to the CAC, ICRP 3.0 automates key steps like name reservation, document verification, and data validation. By removing manual checks, the system is intended to accelerate registration. However, users say this efficiency comes at the cost of critical scrutiny.
AI Approves Alarming Names
Legal practitioner and CAC-accredited agent Manir Faisal raised the alarm on Facebook after testing the system. He said the platform approved names such as “Explosives Making Enterprises,” “Nuclear Proliferation Services,” and “Bandits Food Supply”—names that human reviewers would have likely rejected immediately.
Faisal described the new platform as “unintelligent, inaccurate, and highly inefficient,” arguing that the previous version, CRP 2.0, though flawed, was more dependable. He criticized the CAC for prioritizing automation without addressing functionality, calling for a more efficient and user-friendly interface—AI or otherwise.
He warned that removing human oversight from sensitive processes like name reservation has allowed inappropriate or dangerous names to slip through unchecked.
Users Demand Human Oversight
Other users echoed Faisal’s concerns. Ahmad Aminu Ahmad referenced Section 30(1) of the Companies and Allied Matters Act (CAMA), which outlines prohibited names. He stressed that while AI can identify identical names, it struggles with detecting misleading, offensive, or politically sensitive ones, such as “Boko Haram.”
“Boko Haram to AI is just letters—it doesn’t understand the implications,” Ahmad stated, suggesting that the AI needs more training and contextual data to make informed judgments.
Another user, Abdullahi Jalo, lamented being unable to access his account on the portal, while OctaveMusic Oyewumi pointed out that banks would likely refuse to open accounts for entities with such controversial names. “There is a big challenge, and CAC needs to urgently review this,” he said.
Umar Idris expressed concern that CAC might interpret public feedback as criticism instead of an opportunity for improvement. “They won’t take this as feedback—they’ll see it as an attack,” he warned.
CAC Responds, Defends AI System
In response to the backlash, CAC Registrar-General Ishaq Hussaini Magaji defended the ICRP 3.0, stating that the platform is a learning system that evolves with usage. He acknowledged that some individuals have tried to deliberately test and manipulate the system.
“The ICRP is not static—it evolves with each interaction, becoming smarter and more efficient daily,” the CAC said in a statement. While encouraging constructive feedback, the commission warned against attempts to deliberately bypass the system’s checks.
“We appreciate all genuine feedback—it helps us refine the platform and serve users better. But we urge the public not to engage in efforts that seek to undermine progress,” Magaji said.
Calls for Reform Grow
Despite CAC’s assurances, public demand is mounting for immediate reforms. Experts and users alike are urging the commission to reintroduce a layer of human oversight, fine-tune the AI’s logic, and ensure alignment with ethical and national security standards. The incident has sparked a broader conversation about the role of AI in sensitive government functions and the dangers of over-reliance on automation without adequate checks and balances.
