The Corporate Affairs Commission (CAC) has issued a 90-day ultimatum to approximately 100,000 companies across Nigeria to regularize their status or risk being removed from the commission's official register.
According to the regulatory body, the affected companies have either remained dormant for at least ten years or failed to fulfill critical regulatory obligations as stipulated under the Companies and Allied Matters Act (CAMA) 2020.
The primary violations highlighted by the CAC include failure to file annual returns and inadequate disclosure of Persons with Significant Control (PSC), both of which are mandatory requirements under Nigerian corporate law.
This sweeping action is part of the commission's broader initiative to sanitize Nigeria's corporate registry, enhance regulatory compliance, and align with international standards on anti-money laundering and corporate transparency.
The CAC has advised all affected businesses to file their outstanding annual returns within the 90-day grace period. Companies requiring reactivation have been directed to send activation emails to the commission's website to begin the regularization process.
This development comes amid increasing efforts by Nigerian regulatory authorities to enforce corporate governance standards and ensure that registered entities maintain active compliance with statutory obligations.
Business analysts note that this cleanup exercise could significantly impact Nigeria's corporate landscape, potentially removing thousands of shell companies and improving the overall integrity of the business environment.
The CAC has not specified what further actions might be taken against company directors who fail to comply with this directive beyond the delisting of their companies.
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