Banking Alert! CAC Warns Financial Institutions, Transfers 263 Dormant Firms To EFCC

The Corporate Affairs Commission (CAC) has issued a stern warning to commercial banks against facilitating financial transactions for inactive or non-compliant companies.....KINDLY READ THE FULL STORY HERE▶

The commission recently referred 263 illegally registered firms to the Economic and Financial Crimes Commission (EFCC) for investigation and potential prosecution.

Hussaini Ishaq Magaji (SAN), Registrar-General and CEO of CAC, made the disclosure during the commission’s 35th anniversary event in Abuja. He explained that 248 of the firms had been fraudulently entered into the CAC system, while an additional 15 entities were later uncovered and also submitted to the EFCC for further scrutiny.

“In the year under review, we handed over a list of 248 fake company registrations that were unlawfully inserted into our records,” Magaji said. “These entities operated in Nigeria without traceable corporate identities and without contributing to national revenue. We also identified 15 additional entities for further investigation.”

The affected companies were conducting business within Nigeria’s financial system without proper documentation or tax compliance. The CAC cautioned banks to avoid enabling such entities to transact, emphasizing the need for stricter compliance measures to safeguard both the corporate registry and the broader financial system.

Magaji noted that these actions are part of CAC’s broader strategy to sanitize its processes and combat corporate fraud. He also revealed that three commission staff members had been handed over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for alleged involvement in unauthorized dealings related to company records.

“These measures are intended to eliminate opportunities for compromise and strengthen integrity within our operations,” he said.

The Registrar-General reiterated that CAC maintains a zero-tolerance stance on corruption, despite legal challenges and personal attacks faced during reform efforts. He stressed that combating corruption in public institutions requires courage, discipline, and an unwavering commitment to transparency and accountability.