The Corporate Affairs Commission (CAC) has deregistered more than 400,000 companies nationwide for failing to file their statutory annual returns, marking one of the most sweeping regulatory clean-up exercises in the Commission’s history.
The mass deregistration, carried out in 2025, is part of broader reforms aimed at sanitising Nigeria’s corporate registry, removing dormant entities and curbing the misuse of shell companies for illegal 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 to commemorate its 35th anniversary.
Under the Companies and Allied Matters Act (CAMA) 2020, all registered companies are required to file annual returns to confirm their operational status and compliance with statutory obligations. Companies that fail to meet this requirement over an extended period are liable to be struck off after due notice.
Magaji explained that many of the deregistered companies had long ceased operations and no longer complied with legal requirements, a situation he said undermined transparency and weakened investor confidence.
“In 2025 alone, we deregistered over 400,000 companies. Most of these were inactive entities that failed to file annual returns. Such shell companies pose serious risks to economic transparency and the integrity of our corporate system, hence the need for this clean-up,” he said.
He stressed that maintaining a credible and up-to-date corporate register is essential for economic planning, investment decisions and effective regulation, noting that investors and financial institutions rely heavily on CAC records to assess business risks.
According to him, the exercise aligns with 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.
Reflecting on the Commission’s evolution, Magaji noted that the CAC, established in 1991, has transformed from a manual, paper-based institution into a fully digital organisation.
“From operating manually in a single office, the CAC has evolved into a fully digital institution. Today, our services are accessible globally, 24 hours a day, seven days a week,” he said.
He added that digitisation has significantly reduced the need for physical visits to CAC offices, supporting the Federal Government’s ease-of-doing-business agenda and lowering compliance costs for businesses.
On support for small businesses, the Registrar-General revealed that the CAC, in collaboration 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.
He said the initiative was designed not only to formalise businesses but also to link them to training, capacity building and other support services.
Magaji also highlighted the operationalisation of Nigeria’s Beneficial Ownership Register, which allows regulators, law enforcement agencies and the public to identify individuals who ultimately own or control companies operating in the country.
“This is a major milestone for corporate transparency and accountability,” he said.
On staff welfare, he announced plans to establish a healthcare facility for CAC employees in 2026, alongside expanded welfare programmes including improved career progression, prompt settlement of entitlements, and housing and car loan schemes.
The fitness walk, attended by CAC management and staff, formed part of activities marking the Commission’s 35 years of service in regulating corporate Nigeria and supporting national economic development.
