Why does CAC reject a proposed company name?

Why CAC rejects a proposed company name: names too close to an existing one, misleading names, and restricted words used without approval.

2 min readBy the Docufy editorial team

Quick answer

CAC rejects a proposed name when it is identical or too close to one already on the register, when it could mislead the public about the company, or when it contains a restricted word without the extra approval that word needs. A restricted word also carries its own fee, ₦5,000, instead of the standard one.

A common reason
too close to an existing registered name
Restricted-word fee
₦5,000
Standard reservation fee
₦1,000
Reservation validity
up to 60 days
On this page

A rejected name is a common early stumble in registering a company. It is rarely personal. It is usually one of three things.

A name too close to one already on the register

CAC will not reserve a name that is identical, or close enough to be confused, to a company already on its register. This is a common cause of rejection.

"Close enough" covers more than an exact match. Small spelling changes, a different word order, or dropping a common word like "Nigeria" often still count as too similar.

Before you apply, search CAC's public register yourself for anything similar. It costs nothing and saves a wasted reservation fee.

A name that could mislead the public

CAC also refuses a name that could give a false impression of what the company does, or who stands behind it. A trading name that implies a size, an activity or a government link the company does not have falls into this group.

This is a judgement call on CAC's side, so two similar names can land differently. If your name touches on a regulated activity, such as banking, insurance or another licensed sector, expect closer scrutiny.

A name that overstates the business also falls here. Calling a one-person consultancy a "group" or a "federation" invites the same question: does the name match the reality of the company.

A restricted word, without the extra approval

Some words need permission beyond the ordinary reservation before CAC will accept them.

Reserving one of these costs ₦5,000 rather than the standard ₦1,000. Apply for a restricted word only if your business genuinely needs it, since a second attempt likely means paying the fee again.

What to do after a rejection

Read the rejection reason before you do anything else. It usually tells you which of the three problems above applies.

If it is a clash with an existing name, adjust the wording enough to stand apart, not just change one letter. If it is a restricted word, decide whether you actually need it or can drop it.

Either way, you pay the reservation fee again for the next attempt. There is no separate charge just for a rejection, but budget for paying it again rather than counting on a refund, so a careful first attempt saves money.

Reserving a safer second choice

Have two or three name options ready before your first attempt, in case the first one is refused. It saves a full second wait for a fresh idea.

Keep the alternatives different enough from each other, and from names you already know exist, rather than close variations on the same theme. Once a name clears, it is reserved for up to 60 days; our guide to the reservation fee and validity has the detail on that window.

From there, you can move on to registering the company on CAC's portal, or read our cost guide to registering a company with CAC for the fuller picture of what the whole process costs.

Questions people ask

Can I appeal a rejected name?

This article cannot confirm a formal appeal route. Most applicants simply reserve a different name rather than contest the decision.

Do I get my reservation fee back if the name is rejected?

This article cannot confirm CAC's refund practice for a rejected name. Budget for a second reservation fee rather than count on a refund.

What turns an ordinary name into a restricted one?

CAC treats certain words as restricted rather than ordinary. They cost ₦5,000 to reserve, instead of the standard fee.

How do I lower the chance of a rejection?

Search CAC's public register yourself before you apply, and avoid a name that copies a well-known one closely.

Sources

Last checked 27 Sep 2026. Fees and rules change; the agency that issues the document has the final word. See our editorial policy.

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