CAC Deregisters Over 400,000 Companies for Non-Filing of Returns

…Plans Healthcare Facilities for Staff

The Corporate Affairs Commission (CAC) has deregistered more than 400,000 companies across Nigeria for failing to file statutory annual returns, in one of its most extensive regulatory clean-up exercises aimed at strengthening the credibility of Nigeria’s corporate environment.

The move, which took place in 2025, forms part of ongoing reforms to sanitise the country’s corporate registry, eliminate dormant entities and prevent the misuse of shell companies for illicit or opaque economic activities.

Registrar-General of the CAC, Hussaini Ishaq Magaji, SAN, disclosed this on Saturday in Abuja during the Commission’s monthly fitness walk, organised as part of activities marking its 35th anniversary.

Under the Companies and Allied Matters Act (CAMA) 2020, registered companies are required to file annual returns to confirm their operational status and compliance with statutory obligations. Failure to do so over a prolonged period renders such companies liable to be struck off the register after due notice.

Magaji said many of the deregistered entities had long ceased operations and failed to meet these requirements, thereby undermining transparency, distorting official records and eroding investor confidence.

“In 2025 alone, we deregistered over 400,000 companies from our records. These were largely inactive companies that failed to file annual returns and comply with statutory obligations. Such shell entities pose serious risks to economic transparency and the integrity of our corporate system, which is why the clean-up was necessary,” he said.

He explained that a credible and up-to-date corporate register is a foundational requirement for economic planning, investment decisions and effective regulation, stressing that investors and financial institutions rely heavily on CAC data to assess business risks.

The deregistration exercise, he noted, aligns with broader government efforts to improve Nigeria’s business environment and combat economic crimes by ensuring that only compliant and traceable entities operate within the formal economy.

Magaji said the occasion of the anniversary walk was symbolic, reflecting the Commission’s evolution over the last three and a half decades.

Established in 1991, the CAC initially operated as a largely manual, paper-driven institution, with limited reach and slow service delivery. Over the years, however, the Commission has undergone significant digital transformation.

“From manual operations confined to a single office, CAC has transformed into a fully digital organisation. Today, our services are accessible anywhere in the world, 24 hours a day, seven days a week,” he said.

He added that the digitisation drive has eliminated the need for physical visits to CAC offices for most services, a development that supports the Federal Government’s ease-of-doing-business reforms and reduces the cost of compliance for businesses.

On support for entrepreneurship and small businesses, Magaji disclosed that the CAC, working with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), facilitated the free registration of 250,000 Micro, Small and Medium Enterprises (MSMEs) in 2025.

The initiative, he explained, was designed not merely to formalise businesses, but to link registration with capacity building, training and access to business support services.

“Our goal was not just to register businesses, but to help them grow and survive. By working through SMEDAN, we ensured that beneficiaries also receive training and development support,” he said.

The Registrar-General also highlighted the operationalisation of Nigeria’s Beneficial Ownership Register, a key requirement under global anti-money laundering and corporate transparency frameworks.

The register enables regulators, law enforcement agencies, investors and the public to identify individuals who ultimately own or control companies operating in Nigeria, thereby reducing anonymity and improving accountability.

“This is a major step towards transparency. Anyone seeking to know who truly owns or controls a company can now access that information through the register,” Magaji said.

On staff welfare, the CAC boss announced plans to establish a healthcare facility for employees in 2026, alongside the expansion of welfare programmes.

He said the Commission has introduced measures such as improved career progression, prompt settlement of staff entitlements, and housing and car loan schemes to boost morale and productivity.

“These welfare initiatives are critical to motivating our workforce and ensuring better service delivery to the public,” he added.

The fitness walk, attended by management and staff of the Commission, was part of a series of events commemorating the CAC’s 35 years of service since its establishment, highlighting its role in regulating corporate Nigeria and supporting economic development.