CAC Cracks Down: Companies Must Reveal Beneficial Owners Holding 5%+ Shares or Face Sanctions

The Corporate Affairs Commission (CAC) has sent a clear warning to all Nigerian companies: disclose the real individuals behind your ownership or face penalties. Any person or entity holding 5% or more of shares or voting rights must now reveal the ultimate beneficial owner, signaling an uncompromising push for corporate transparency.

This enforcement marks a critical step in tackling corporate opacity and financial crime. Even when ownership is hidden through trusts, nominees, or layered structures, the CAC expects full disclosure of the decision-makers steering these companies.

Experts say this is more than a regulatory formality—it is a mandate for accountability and investor protection. Companies failing to comply risk hefty fines, operational restrictions, or criminal liability, underlining the seriousness of this directive.

For Nigeria’s business community, the message is unequivocal: transparency isn’t optional; it’s legally enforceable. The CAC’s move aligns domestic regulations with global standards for anti-money laundering, governance, and investor confidence, reshaping how companies operate across the nation.

The Corporate Affairs Commission (CAC) demands full disclosure of individuals holding 5%+ shares or voting rights in Nigerian companies. Non-compliance may attract fines, sanctions, and criminal liability as transparency enforcement tightens.