The Corporate Affairs Commission (CAC) has announced a sweeping crackdown on dormant companies, deregistering over 300,000 entities within a year as part of its efforts to cleanse Nigeria’s corporate registration system.
In an exclusive interview with The Nation in Abuja, the Registrar General, Hussaini Ishaq Magaji, SAN, shed light on the unprecedented exercise.
“From October 16, 2023, when I assumed office, to date, we have witnessed an extraordinary level of deregistration.
In December 2023 alone, we deregistered over 100,000 companies. By February 2024, another 100,000 companies were removed, and recently, we deregistered an additional 100,000,” Magaji revealed.
The CAC chief explained that these companies had been inactive for over a decade, failing to meet their statutory obligation of filing annual returns.
He also warned of the potential risks posed by some of the entities, stating that they could serve as conduits for fraudulent activities.
“Our system is integrated with critical agencies, such as the Federal Inland Revenue Service (FIRS), security agencies, embassies, and banks. Once a company is marked as inactive on our portal, it cannot access banking services, process embassy documents, or engage in other operations,” he added.
This decisive action underscores the Commission’s commitment to maintaining a robust and transparent corporate environment in Nigeria.