CAC deregisters over 400,000 inactive, non-compliant companies in 2025

The Corporate Affairs Commission (CAC) deregistered over 400,000 companies in 2025, citing prolonged inactivity and failure to meet statutory compliance requirements.

This disclosure was made by the Registrar-General of the commission, Hussaini Magaji, during activities marking CAC’s 35th anniversary celebration held in Abuja on Saturday.

According to the commission, the large-scale deregistration forms part of deliberate efforts to sanitise Nigeria’s corporate registry, remove dormant entities, and strengthen confidence in the country’s business regulatory framework.

Magaji said many of the affected companies had either ceased operations for years or consistently failed to comply with key regulatory obligations under the Companies and Allied Matters Act (CAMA), particularly the filing of annual returns and disclosure of Persons with Significant Control.

What CAC is saying

“In 2025 alone, the commission deregistered over 400,000 companies in a bid to clean up its database from inactive and non-compliant entities,” Magaji said.

He explained that maintaining an accurate and credible companies register is critical to transparency, investor confidence, and the overall integrity of Nigeria’s business environment.

According to him, inactive companies distort economic data, weaken regulatory oversight, and create loopholes that could be exploited for financial misconduct.

Support for MSMEs

Beyond enforcement, Magaji disclosed that the commission facilitated free business registrations for 250,000 entrepreneurs in collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

He said the initiative was designed to reduce the cost of business formalisation and encourage Micro, Small and Medium Enterprises (MSMEs) to operate within the formal economy.

The programme, he noted, aims to ease entry barriers for small businesses, expand participation in the regulated sector, and promote inclusive economic growth.

Backstory

The mass deregistration follows earlier announcements by the CAC on plans to delist at least 100,000 companies that had remained inactive for over a decade or failed to meet statutory requirements.

In a public notice issued at the time, the commission gave affected companies a 90-day window to regularise their status by filing outstanding annual returns and completing necessary compliance steps, including disclosure of beneficial ownership.

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Companies that failed to comply within the stipulated period were subsequently removed from the register.

More insights

Magaji also revealed that the CAC has operationalised a Beneficial Ownership Register, allowing the public to identify the ultimate owners of companies operating in Nigeria. He described the register as a major milestone in promoting corporate transparency and combating financial crimes.

On internal reforms, he said the commission has introduced housing and vehicle loan schemes for staff and is planning to establish a health facility to support serving and retired employees.

What you should know

The CAC has continued to digitise its operations to improve service delivery and ease of doing business in Nigeria. In July 2025, the commission launched an AI-powered registration portal designed to accelerate company registration, enable instant name reservations, and significantly reduce processing times.

The system allows business registration certificates to be issued in under 30 minutes once a user’s National Identification Number (NIN) is verified, marking a major shift from traditional in-office procedures to fully remote, technology-driven processes.

The commission also recently removed 247 companies from its database for operating with false Registered Certificate (RC) numbers, reinforcing its zero-tolerance stance on corporate fraud and non-compliance.