Over 400,000 Companies Face Delisting as CAC Cleans Up Records

Over 400,000 Companies Face Delisting as CAC Cleans Up Records

The Corporate Affairs Commission (CAC) has commenced the removal of over 400,000 inactive companies from Nigeria’s official corporate register, citing prolonged non-compliance with statutory requirements under the Companies and Allied Matters Act (CAMA).

According to the commission, the affected companies failed to file annual returns and other mandatory post-incorporation documents for several years, despite repeated notices and grace periods granted by the regulator.

The CAC explained that the exercise is part of ongoing reforms aimed at sanitising the country’s corporate database, improving transparency, and ensuring that only compliant and operational entities remain on the register.

Under CAMA, registered companies are required to file annual returns to confirm their operational status, ownership structure, and compliance with regulatory obligations. Failure to do so for consecutive years renders such companies liable to be struck off.

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The commission noted that many of the delisted entities have been dormant for years, with no evidence of business activity, making their continued presence on the register misleading to investors, regulators, and the general public.

CAC added that affected companies still have the option of reinstatement, provided they regularise their status by filing outstanding returns, paying applicable penalties, and meeting other statutory requirements within the allowed timeframe.

The mass deletion exercise is also expected to strengthen Nigeria’s ease of doing business ranking by improving the accuracy of corporate data and reducing the risks associated with shell companies and corporate abuse.

Business experts say the move will help curb financial crimes, enhance corporate governance, and improve confidence in Nigeria’s business environment, especially for foreign investors who rely on CAC records for due diligence.

The CAC urged company directors, secretaries, and business owners to regularly check their compliance status on the commission’s portal to avoid being struck off in future clean-up exercises.

Over 400,000 Companies Face Delisting as CAC Cleans Up Records