CAC Gives 100,000 Nigerian Companies 90 Days to Avoid Deregistration in Sixth Compliance Exercise

The Corporate Affairs Commission (CAC) has commenced the sixth phase of its nationwide compliance exercise, placing another 100,000 companies at risk of being removed from Nigeria’s corporate register unless they regularise their statutory filings within 90 days.

In a public notice issued on Wednesday, the Commission directed the affected companies to file all outstanding Annual Returns, submit their Persons with Significant Control (PSC), also known as Beneficial Ownership information, and update their records. Companies that fail to comply within the stipulated period will be struck off the register without further notice. Evidence of compliance must be submitted to the Commission through its designated email address.

The Commission said the exercise is being conducted in accordance with Section 692(3) and (4) of the Companies and Allied Matters Act (CAMA) 2020.

The latest exercise forms part of an ongoing compliance campaign that began in mid-2025, with each phase targeting approximately 100,000 companies. By February this year, Registrar-General Hussaini Magaji disclosed that the CAC had already removed more than 400,000 companies from the corporate register, reflecting the cumulative outcome of earlier phases.

What leads to deregistration?

Companies are typically marked for deregistration after prolonged inactivity or repeated failure to meet statutory obligations, particularly the filing of Annual Returns and the disclosure of Persons with Significant Control.

Under CAMA 2020, companies are required to file Annual Returns within 42 days of each Annual General Meeting, while business names must file annual returns before 30 June each year. The requirement applies even where a business has not traded or generated any income.

Why beneficial ownership disclosure matters

The PSC disclosure requirement is designed to identify the individuals who ultimately own or control a company, even where ownership is held through multiple corporate entities or other legal structures.

Nigeria introduced the regime to align with international transparency standards promoted by organisations such as the Financial Action Task Force (FATF). The objective is to strengthen corporate transparency, curb money laundering, reduce the misuse of shell companies and make it more difficult to conceal the true ownership of businesses.

While PSC disclosure is now mandatory for newly incorporated companies, the current compliance exercise extends the requirement to older companies that were incorporated before the rule came into effect or have yet to comply.

Deregistration carries significant legal implications. Under CAMA, a company that has been struck off the register cannot lawfully continue operations unless it is restored by an order of the Federal High Court. The CAC and corporate compliance advisers have consistently warned that restoring a deregistered company is considerably more time-consuming, costly and burdensome than maintaining compliance through routine statutory filings.

Compliance drive complements digital transformation

The compliance campaign comes as the Commission continues one of the most extensive digital transformation programmes in its history.

Over the past two years, the CAC has digitised key services, including company incorporation, Annual Returns filing, PSC submissions, name reservations and certificate issuance.

In 2025, the Commission introduced an AI-assisted registration portal, which it says can issue a certificate of incorporation in less than 30 minutes once an applicant's National Identification Number has been successfully verified. It also integrated company registration with tax administration, allowing a company's CAC registration number to automatically serve as its Tax Identification Number (TIN).

Together, the digital transformation and compliance enforcement initiatives are aimed at creating a more accurate and reliable corporate register. While faster online registration encourages business formation, the removal of dormant and non-compliant entities improves the quality and integrity of the register.

A cleaner corporate database also benefits banks, investors and business partners by making it easier to verify legitimate businesses. It supports tax authorities with more accurate records of active companies and strengthens efforts to combat fraud, money laundering and the misuse of shell companies.

More broadly, the reforms reinforce Nigeria's commitment to improving corporate governance and aligning its business environment with international best practices.

For the 100,000 companies listed in the sixth batch, the message is clear: comply within 90 days by filing outstanding Annual Returns, disclosing beneficial ownership information and updating company records, or face removal from Nigeria's corporate register.