CAC issues 90-day ultimatum

By Philippine Duru

philippineobetoduru@gmail.com

08034905774

The Corporate Affairs Commission (CAC) has commenced another nationwide compliance enforcement exercise, issuing a 90-day notice to approximately 100,000 companies to regularise their statutory records or face deregistration from Nigeria’s official register of companies.

The Commission announced the move in a public notice, describing it as the sixth batch of companies slated for removal under the provisions of Sections 692(3) and (4) of the Companies and Allied Matters Act (CAMA), 2020. The exercise is aimed at sanitising the corporate register by removing inactive and non-compliant entities.

According to the CAC, the names of the affected companies have already been published on its official website, and the affected firms have 90 days from the date of the notice to file all outstanding Annual Returns and update their Persons with Significant Control (PSC), also known as Beneficial Ownership, information.

In the notice, the Commission warned that failure to comply within the stipulated period would result in the companies being struck off the register without any further notice. It urged all affected companies to promptly regularise their records and forward evidence of compliance through the designated CAC communication channel.

The CAC explained that the exercise forms part of its broader mandate to maintain an accurate and credible companies register, improve corporate governance, and ensure that only active and compliant businesses remain legally recognised in Nigeria. The Commission believes that a clean and up-to-date corporate register will enhance investor confidence, improve transparency, and strengthen Nigeria’s business environment.

Under the Companies and Allied Matters Act, every registered company is required to file annual returns with the Commission to confirm that it remains operational and compliant with statutory obligations. For incorporated companies, annual returns are due within 42 days after each anniversary of incorporation, while registered business names are expected to file their returns annually before June 30. Failure to meet these obligations attracts statutory penalties and could ultimately lead to deregistration.

The Commission also emphasised the importance of submitting information on Persons with Significant Control, noting that beneficial ownership disclosure is a key component of Nigeria’s efforts to combat money laundering, terrorist financing, tax evasion, and other illicit financial activities while aligning the country’s corporate governance framework with international standards.

This is not the first large-scale enforcement exercise by the CAC. Earlier in the year, the Commission announced plans to remove another batch of about 100,000 inactive companies, while in 2025 it disclosed that more than 400,000 companies had been deregistered as part of an ongoing cleanup of the national corporate register.

Business owners whose companies appear on the published list have been advised to act immediately by filing all outstanding statutory returns and updating their beneficial ownership information within the 90-day grace period to avoid losing their legal status. The Commission reaffirmed its commitment to providing efficient regulatory services while promoting transparency, accountability, and compliance across Nigeria’s corporate sector.