Nigerian Corporate Affairs Commission Deregisters 400,000 Inactive Companies to Boost Economic Integrity

The Corporate Affairs Commission (CAC) in Nigeria has recently delisted 400,000 inactive companies from its corporate registry as part of a reform agenda to bolster transparency, safeguard the economy, and rebuild investor trust. The Registrar General of CAC, Hussaini Magaji San, made this announcement during the commission's monthly fitness walk event in Abuja, marking its 35th anniversary.

Magaji emphasized that these deregistered entities, mostly large companies, had failed to meet statutory obligations such as filing annual returns, posing risks to economic operations. The move is crucial for maintaining a clean registry, attracting local and foreign investments, and preventing misuse of corporate structures for illicit activities.

The CAC, established in 1991 under the Companies and Allied Matters Act of 1990, has evolved from a manual agency to a fully digital organization offering end-to-end services globally. Magaji highlighted the commission's support for small and medium enterprises, partnering with the Small and Medium Enterprises Development Agency of Nigeria to facilitate free registration for 250,000 MSMEs by 2025.

This initiative aims to enhance business support, training, and welfare for beneficiaries. The CAC's digitization efforts have streamlined business registration processes, eliminating the need for physical visits and enhancing service delivery.