The Corporate Affairs Commission (CAC) has accused financial institutions, particularly banks, of weakening Nigeria’s anti-corruption framework by conducting transactions with inactive and non-compliant companies. Registrar-General Hussaini Magaji (SAN) also revealed that 248 fraudulent company registrations were reported to the Economic and Financial Crimes Commission (EFCC), and three CAC staff were handed over to the Independent Corrupt Practices Commission (ICPC) for alleged misconduct.
Speaking in Abuja during activities for the Commission’s 35th anniversary, Magaji stressed that a company flagged as inactive by the CAC for failing to disclose its Persons with Significant Control (PSC) should not be permitted to operate bank accounts or engage in financial transactions. He described the continued facilitation of such companies by some banks as a critical vulnerability in the national compliance chain.
“If a company is non-compliant, it must not enjoy the privileges of legality,” Magaji stated, calling for uniform enforcement across all regulatory and financial institutions.
The disclosures include internal actions taken by the CAC to bolster integrity. Magaji confirmed that three staff members were surrendered to the ICPC over suspected unauthorised tampering with company records. Separately, 248 illegally inserted company registrations were identified and reported to the EFCC; an additional 15 entities are under further review. He noted that no legal challenge has contested the CAC’s removal of these registrations.
A central theme of the address was the need for a single, harmonised national register for beneficial ownership information. Magaji warned that Nigeria’s current fragmented system—where sectors like the extractive industry maintain separate registers outside the CAC’s central database—creates duplication, inconsistencies, and regulatory loopholes exploitable for money laundering and illicit flows.
He advocated for elevating the existing Persons with Significant Control Rules into an Act of the National Assembly to create a stronger legal basis for enforcement. Magaji also criticised corporate structures that declare other companies, rather than individuals, as beneficial owners, calling the practice a form of concealment that undermines transparency.
The Registrar-General urged deeper, structured collaboration among anti-corruption and law enforcement agencies, including the EFCC, ICPC, Nigeria Financial Intelligence Unit, and National Drug Law Enforcement Agency. He called for sustained information sharing, joint investigations, and real-time verification with the CAC.
Magaji framed these reforms as essential for Nigeria’s compliance with global anti-money laundering and counter-terrorism financing standards, noting that beneficial ownership transparency is a rapidly evolving international imperative. The remarks were made during a panel session titled “Transparency for Development: The Nigeria Experience,” part of the CAC’s anniversary programme.
