Nigerian Court Orders Deregistration of KPMG Affiliate

In a significant ruling, the Appeal Court of Nigeria has ordered the Corporate Affairs Commission (CAC) to revoke the registration of KPMG Professional Services, a subsidiary of the global accounting firm KPMG. The court’s decision is a major setback for the company, which has been operating in Nigeria for several years. The ruling is the result of a long-standing dispute between KPMG and another accounting firm, which had challenged the registration of KPMG Professional Services. The court found that the CAC had erred in registering the company, as it did not meet the necessary requirements. The judgment is a victory for the accounting firm that brought the case, which had argued that KPMG’s registration was invalid. The Appeal Court’s decision is also a significant development in the Nigerian business landscape, as it highlights the importance of regulatory compliance. KPMG Professional Services had been providing a range of services, including audit, tax, and advisory services, to clients in Nigeria. However, the court’s ruling means that the company will no longer be able to operate in the country. The CAC has been ordered to take immediate action to revoke the company’s registration. The ruling is likely to have significant implications for KPMG’s clients and employees in Nigeria. The company may be forced to wind down its operations and relocate its staff. The Nigerian government has been working to improve the business environment in the country, and the court’s decision is seen as a positive step in this direction. The ruling demonstrates the government’s commitment to upholding the rule of law and ensuring that companies operate in accordance with regulatory requirements. The case is also a reminder of the importance of due diligence and regulatory compliance for companies operating in Nigeria. The Appeal Court’s decision is subject to appeal, but it is unclear whether KPMG will challenge the ruling. The company has not yet commented on the decision, but it is likely to be a major blow to its operations in Nigeria. The ruling is a significant development in the Nigerian accounting sector, and it will be closely watched by other companies operating in the country.

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