The Corporate Affairs Commission (CAC) has announced plans to remove about 100,000 dormant companies from its official register for failing to comply with the Companies and Allied Matters Act (CAMA), especially those inactive for over a decade.
This development was revealed through a public notice issued by the Commission and made available to the public. The notice stated that the affected companies had either failed to file their annual returns, not updated their Persons with Significant Control (PSC) records, or had stopped doing business altogether. Many of these firms, according to the CAC, have been dormant for at least 10 years.
The Commission warned that once delisted, it will become illegal for such companies to carry on any business in Nigeria unless they are officially restored by an order from the Federal High Court. The notice made it clear: “It shall be unlawful for any company struck off the Register of Companies to continue carrying on business unless it is restored by an order of the Federal High Court.”
The CAC gave the affected companies 90 days from the publication date to correct their compliance status by submitting all outstanding annual returns and meeting other statutory requirements. Failure to do so will result in permanent removal from the registry.
This move is part of the Commission’s ongoing efforts to clean up its records and ensure that only genuine, active, and compliant businesses are listed in the official register. The CAC cited Section 692 (4) of the CAMA 2020, which empowers the agency to delist companies that fail to meet their obligations under the law.
In July 2024, a similar notice was issued, after which several inactive companies were delisted in November 2024. The Commission said that such actions help improve the accuracy of its database, make company records more reliable for business transactions, and reduce the risk of fraud.
Business analysts believe the crackdown is aimed at promoting transparency and accountability in Nigeria’s corporate environment. Many dormant companies, they say, are used as fronts for illicit activity or are simply neglected over time due to poor management or changing business interests.
The Companies and Allied Matters Act (CAMA) 2020 requires every registered company in Nigeria to file annual returns, regardless of whether it makes profit or carries on business in a particular year. The Act also makes it mandatory for companies to disclose the identities of individuals who hold significant control over the business.
Legal experts have urged registered businesses to regularly update their records with CAC to avoid being struck off. The delisting could affect a company’s ability to open bank accounts, sign contracts, raise funds, or take legal action.
The CAC has advised directors and shareholders of affected companies to urgently take action if they wish to keep their registration active. Companies that fail to meet the deadline will not only lose their corporate status but will also need to go through a lengthy court process to be reinstated.
Meanwhile, the Commission is also working on improving its services through automation and digital transformation, allowing business owners to access services like registration, return filing, and PSC disclosures online. This, it says, will make it easier for companies to stay compliant.
The Commission has encouraged business owners to log into the CAC portal and check their compliance status. The 90-day countdown began from the date of publication, and the public has been notified through major media channels and the CAC’s official website.
By enforcing the law and clearing the register of inactive companies, the CAC says it aims to strengthen Nigeria’s corporate governance framework and ensure only responsible and law-abiding entities operate in the country.
