The head of Nigeria’s Corporate Affairs Commission (CAC) has accused banks and financial institutions of undermining the country’s anti-corruption framework by enabling non-compliant companies to conduct transactions. Registrar-General Hussaini Magaji, SAN, made the claim during an Anti-Corruption Day event in Abuja, marking the commission’s 35th anniversary.
Magaji stated that while the CAC flags companies without full disclosure of Persons with Significant Control (PSC) as inactive, some banks continue to allow these entities to open accounts and transact freely. He described this as a “major weakness in our national compliance chain,” urging financial institutions to align with regulatory standards. “If a company is non-compliant, it must not enjoy the privileges of legality,” he said.
The disclosures also included internal actions against corruption. Magaji confirmed that three CAC staff were surrendered to the Independent Corrupt Practices Commission (ICPC) over alleged professional misconduct involving unauthorised tampering with company records. Additionally, the commission referred 248 suspected fake company registrations to the Economic and Financial Crimes Commission (EFCC) for investigation. These fictitious entities, he explained, lacked verifiable identities and evaded tax contributions. A further 15 suspicious registrations were also submitted for scrutiny.
Magaji emphasised that no legal challenge has succeeded against the CAC’s removal of these illegal registrations. He renewed calls for a unified national register for beneficial ownership data, arguing that Nigeria’s current fragmented system creates loopholes for money laundering and illicit finance.
The statements highlight tensions between corporate regulators and financial institutions in enforcing transparency. Magaji stressed that consistent compliance enforcement across all bodies is essential to curb corporate abuse and strengthen Nigeria’s anti-corruption efforts. The push for a centralised beneficial ownership register aligns with global standards aimed at curbing financial crime.
