“CAC Reads Riot Act: 100,000 Dormant Companies Face Delisting in Fresh Compliance Crackdown”

In a sweeping move to sanitize Nigeria’s corporate space, the Corporate Affairs Commission (CAC) has launched a fresh compliance drive targeting over 100,000 dormant companies that have failed to file their statutory annual returns. The initiative, boldly tagged “Comply or Be Delisted,” marks one of the most aggressive corporate cleanup campaigns in the Commission’s recent history.

The Registrar-General of CAC, Hussaini Ishaq Magaji, SAN, disclosed the development during a media briefing at the Commission’s headquarters in Abuja, stating that the action is aimed at strengthening transparency and restoring credibility to Nigeria’s business registry.

“A staggering number of companies—over 100,000—have not filed their annual returns in more than a decade. These companies have become dead weight on our system. We cannot allow a corporate environment where ghost firms thrive,” Magaji declared.

He explained that the move is backed by Section 692 of the Companies and Allied Matters Act (CAMA) 2020, which empowers the Commission to strike off companies that fail to comply with their statutory obligations.

The Compliance Window

As part of the crackdown, the CAC has issued a final 90-day window for affected companies to regularize their status or risk delisting. Notices have already been sent to defaulting firms and their directors through registered emails, newspapers, and the Commission’s website.

A CAC compliance officer, who spoke under anonymity, described the exercise as “a long-overdue step to clear out the registry and restore discipline in the business sector.”

Expert Insights: A Necessary Purge

Legal and economic experts say the Commission’s decision, while stern, is necessary to reposition Nigeria’s business climate for global credibility.

“Allowing thousands of inactive companies to remain on the register sends the wrong signal to both local and international investors,” said Barr. Ifeoma Anene, a Lagos-based corporate lawyer. “It undermines due diligence processes, encourages fraud, and complicates regulatory monitoring.”

Dr. Paul Oyekanmi, a senior lecturer in Business and Regulatory Policy at the University of Abuja, agrees. “This cleanup is essential. Many shell companies were registered years ago with no activity, and they distort economic data and weaken anti-money laundering frameworks,” he said.

Business Owners React

While some business owners welcome the move, others express concern over the short grace period.

Mr. Chinedu Obasi, the CEO of a small trading firm in Onitsha, admitted he had not filed returns since 2017. “Honestly, I didn’t know it was mandatory once the company wasn’t active. But now, with this deadline, I’m rushing to regularize everything,” he said.

Others, like Mrs. Rukayat Balogun, called for more education. “Many SMEs don’t have legal departments. The CAC should increase public sensitization, not just penalties,” she argued.

Digital Systems Strengthening Enforcement

Unlike past efforts that lacked enforcement bite, this crackdown is being supported by a revamped digital compliance tracking system. This system, officials say, now flags defaulters more efficiently and ensures swift automated notifications.

“Technology has made it easier for us to monitor defaulting entities. No one can claim ignorance anymore,” said a CAC official familiar with the new monitoring system.

Looking Ahead: A Stronger Corporate Registry

The CAC emphasized that the exercise is not a witch-hunt but a cleanup to ensure Nigeria’s corporate registry reflects active, compliant entities. The Commission urged companies to use the 90-day window wisely to avoid being struck off.

As the deadline looms, experts suggest this might usher in a new era of compliance culture in Nigeria’s corporate sector—one where legitimacy, transparency, and accountability take center stage.

“If done right and sustained, this could reset the corporate culture in Nigeria,” Dr. Oyekanmi concluded. “It’s not just about delisting names—it’s about setting a standard.”

Companies unsure of their status can visit the CAC website or contact the nearest CAC office for guidance. The clock is ticking.