90 Days or Gone: CAC to Delist 100,000 Inactive Companies from Business Register
- The Corporate Affairs Commission (CAC) has announced plans to delist about 100,000 inactive companies from its register
- The Commission stated that the move aligns with Section 692(3) and (4) of the Companies and Allied Matters Act (CAMA) 2020
- It, however, gave the listed companies a 90-day grace to regularise their records to avoid delisting
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Corporate Affairs Commission (CAC) has announced it will delist around 100,000 inactive and non-compliant companies from its register.
This unprecedented move targets businesses that have failed to file annual returns or disclose beneficial ownership information for over a decade.
Source: Original
Legal backing from CAMA 2020
It forms part of the commission’s effort to enhance transparency, sanitise Nigeria’s corporate space, and meet international anti-money laundering standards.
The delisting is backed by Section 692(3) and (4) of the Companies and Allied Matters Act (CAMA) 2020.
The law mandates that companies which have defaulted for over 10 years in meeting their statutory filing obligations are subject to removal from the CAC register.
The CAC says this measure is necessary to rid the corporate database of inactive entities and boost confidence in Nigeria’s business environment.
90-day grace period begins
Affected companies have been given a 90-day ultimatum to regularise their status.
This includes filing outstanding annual returns, submitting required documents, and sending an activation email to activation@cac.gov.ng where applicable.
Failure to comply within the stipulated timeframe will lead to automatic delisting and loss of legal business recognition.
Legal consequences of being delisted
Once struck off, such companies will be considered dissolved and legally barred from operating or entering into business agreements.
Any transactions conducted under the name of a delisted entity would be regarded as unlawful and invalid.
To reverse the dissolution, companies would need to seek a court order from the Federal High Court—a lengthy and expensive process.
Access the full list on the CAC website
The CAC has made the list of affected companies publicly available on its official website.
Stakeholders, partners, and the general public are advised to check the list and verify the compliance status of entities they deal with.
This transparency move aims to protect unsuspecting business partners and investors from dealing with shell or inactive firms.
Transparency at the heart of reform
This action aligns with Nigeria’s commitment to international best practices on corporate governance and transparency.
By enforcing compliance and disclosing beneficial ownership, the CAC is working to combat the misuse of corporate structures for illicit financial flows and corruption.
It’s also a key part of Nigeria’s ongoing anti-money laundering and anti-terrorist financing reform agenda.
Active companies encouraged to comply
The CAC urges all registered companies to ensure they remain in good legal standing by fulfilling their annual obligations.
Entities unsure of their status can visit the commission’s portal or contact its offices nationwide for guidance.
With the clock ticking, compliance is now non-negotiable for survival in Nigeria’s formal business landscape.
CAC issues deadline to over 91,000 companies
Last year, the commission issued a similar notice, telling the public that it pencilled down over 90,000 companies for delisting.
The Corporate Affairs Commission (CAC) has issued a 90-day ultimatum to over 91,000 registered but dormant companies to file all their outstanding annual returns or be delisted from its database.
The affected companies have no annual returns for more than 10 years.
The commission disclosed this in a statement on its website on Wednesday, July 24, 2024.
Source: Facebook
The commission also recently increased its service fees, attributing it to high operational costs.
CAC integrates AI features for faster service delivery
Legit.ng earlier reported that as part of steps to improve ease for Nigerian businesses, the Corporate Affairs Commission (CAC) has launched an Artificial Intelligence (AI)-powered registration portal.
This marks a complete overhaul of the Company Registration Portal (CRP) and changes the way businesses will register names henceforth.
The Registrar-General/CEO of the Commission, Hussaini Ishaq Magaji, announced this innovation at the 2025 stakeholders’ forum.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
