Nigeria’s Corporate Affairs Commission (CAC) has announced plans to remove approximately 100,000 companies from its official register for failing to meet regulatory standards, marking a major crackdown on non-compliant businesses. The move, driven by the Companies and Allied Matters Act (CAMA) 2020, aims to streamline the corporate registry, ensuring only active and law-abiding entities operate within the country’s formal economy.
Affected firms include those inactive for a decade, those not conducting business operations, and entities that have neglected mandatory obligations such as annual returns filings and disclosing details of Persons with Significant Control (PSC)—a transparency measure aligned with global anti-money laundering efforts. The CAC issued a 90-day ultimatum, effective from the notice’s publication date, for companies to rectify their status by submitting overdue documentation and, where applicable, sending reactivation requests to a designated email address.
“It will be illegal for any delisted company to continue operations unless reinstated by a Federal High Court order,” the Commission warned, citing Section 692 (4) of CAMA 2020 as the legal basis for its action. This follows a similar regulatory purge in November 2023, which saw inactive firms dissolved after a three-month grace period. Companies struck from the register will lose their legal standing immediately, rendering any subsequent transactions void.
The initiative underscores Nigeria’s broader push to enhance corporate accountability and combat financial crimes. By enforcing annual reporting—a requirement for tracking operational legitimacy and ownership structures—the CAC seeks to eliminate dormant entities often exploited for illicit activities. The Commission reiterated that dissolved businesses must cease operations, stressing the risks of engaging with non-compliant entities post-delisting.
While the announcement signals tighter oversight, it also offers a compliance pathway for businesses willing to regularize their status. Analysts suggest the cleanup could improve Nigeria’s business climate by reducing bureaucratic clutter and strengthening investor confidence in regulatory processes. However, the unprecedented scale of the delisting drive raises questions about potential economic ripple effects, particularly for smaller enterprises navigating complex administrative requirements.
The CAC’s latest action reflects a growing trend among governments to enforce stricter corporate governance norms, mirroring global standards aimed at curbing fraud and promoting transparency in commercial ecosystems.
