Massive Shake-Up: CAC Targets 100,000 Companies For Delisting Over Non-Compliance

The Corporate Affairs Commission (CAC) has issued a firm warning to over 100,000 registered companies, threatening to remove their names from its registry due to prolonged inactivity and consistent failure to comply with statutory obligations under the Companies and Allied Matters Act (CAMA) 2020.

In a public notice released over the weekend, the CAC announced that the move is part of a broader effort to sanitize Nigeria’s corporate landscape, enforce regulatory compliance, and align with anti-money laundering standards.

According to the notice, the affected companies have been dormant for at least 10 years, have ceased operations, or failed to meet key regulatory requirements—particularly filing annual returns and declaring Persons with Significant Control (PSC).

“Companies removed from the register will be considered dissolved from the date of publication. Engaging in any transactions with such entities is unlawful,” the CAC warned.

90-Day Compliance Window

The Commission has given affected companies a 90-day grace period from the date of the notice to update their records, including filing all outstanding annual returns.

Firms must also send activation emails to activation@cac.gov.ng (where applicable) to maintain their active status.

“Any company struck off the register may not continue operations unless reinstated by a Federal High Court order,” the Commission added.

This enforcement action is supported by Section 692(4) of CAMA 2020, which empowers the CAC to delist companies that fail to fulfill basic regulatory requirements.

The notice reminded the public of a similar initiative in July 2023, which led to the delisting of several non-compliant firms in November 2023 after the statutory grace period expired.

The CAC emphasized that this initiative reflects global best practices, aiming to promote transparency in company ownership, combat financial crimes, and boost public confidence in Nigeria’s corporate regulatory system.

Businesses and individuals are strongly advised to verify the legal status of any company before entering into any transactions, as dealings with dissolved companies are null and void under Nigerian law.