CAC Set To Delist 100,000 Companies

CAC Set To Delist 100,000 Companies

The Corporate Affairs Commission (CAC) is set to remove 100,000 inactive companies from Nigeria’s corporate registry due to their failure to file annual returns for over ten years.

These entities have been granted a 90-day window to fulfill the requirement or risk being permanently struck off the register

According to a notice published on its official website, the CAC cited powers under Section 692 (3) and (4) of the Companies and Allied Matters Act (CAMA) 2020 to strike off the names of non-compliant companies.

Companies identified as inactive or not carrying on any business for at least ten years were included in the list.

The list of affected entities has been made publicly available on the CAC portal.

The CAC warned that it is illegal for any delisted company to continue conducting business, as such entities are deemed dissolved by law.

Restoration can only occur through a Federal High Court order, highlighting the severity of permanent removal.

This development follows a previous clean-up in 2024 during which the CAC delisted over 80,000 defaulting companies after a similar 90-day compliance window. Approximately 5,000 firms subsequently complied, avoiding dissolution.

Registrar-General of the CAC, Garba Abubakar, reaffirmed that nearly 90% of registered companies in Nigeria are dormant, underscoring the urgency for this regulatory action.

CAC emphasised the need to eliminate “ghost companies” that clutter the registry without contributing to economic activity.

Affected companies have been urged to review the published list and act promptly. Those who believe they were mistakenly included may contest their status and provide documentation of compliance to the commission via mail.

CAC also stressed enhanced disclosure requirements around Persons with Significant Control (PSC). Companies must ensure updated ownership records as part of annual filings to maintain compliance and transparency.

Businesses and stakeholders have been advised to verify the legal status of firms before engaging in contracts or transactions. A dissolved company has no legal standing, and entering into agreements with such entities could result in legal ramifications.

The delisting initiative is part of broader efforts to strengthen corporate governance, improve data integrity, and align with international anti-money laundering standards.

Section 692 of the CAMA mandates that companies must file annual returns within 42 days after their incorporation anniversary. Business names must be renewed before June 30 each year. Failure to comply invites penalties and the risk of being struck off the registry.

With the grace period now open, the CAC’s directive signals a fresh start for Nigeria’s business registry. By pruning inactive entities, the commission aims to enhance transparency and accountability across the corporate landscape.

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