Nigerian CAC to delist 100,000 inactive companies, issues 90-day ultimatum

Summary

• The Corporate Affairs Commission (CAC) of Nigeria has announced plans to delist approximately 100,000 companies from its register due to prolonged inactivity and non-compliance with statutory requirements under the Companies and Allied Matters Act (CAMA) 202
• This move, part of a broader effort to sanitize Nigeria’s corporate registry, targets companies that are dormant, not carrying on business, or have failed to file annual returns and disclose Persons with Significant Control (PSC)
• Affected companies have been given a 90-day grace period, starting from 29 July 2025, to regularize their status or face dissolution, with consequences including losing legal operating status
• This marks another significant delisting exercise by the CAC, reinforcing its commitment to transparency, reducing financial crime, and enhancing the ease of doing business in Nigeria

Abuja, Nigeria – The Corporate Affairs Commission (CAC) of Nigeria has commenced a major cleanup of its corporate register, announcing on 29th July 2025, its intention to delist approximately 100,000 companies due to prolonged inactivity and non-compliance with statutory requirements outlined in the Companies and Allied Matters Act (CAMA) 2020. This action is a key component of the CAC’s ongoing efforts to sanitize Nigeria’s corporate landscape, ensuring that only active and compliant entities remain registered.

The CAC has identified these 100,000 companies as either dormant (inactive for at least 10 years), not carrying on business, or failing to meet crucial regulatory obligations, particularly the annual filing of returns and the disclosure of Persons with Significant Control (PSC). The enforcement is specifically empowered by Section 692 (3) and (4) of CAMA 2020, which authorizes the Commission to strike off defunct or dormant companies from its register.

A 90-day grace period has been extended to the affected companies, commencing from the date of the public notice (29 July 2025). During this window, companies must file all outstanding annual returns and regularize their status to avoid delisting.

To activate their status, companies should submit their outstanding returns and notify the CAC via email at activation@cac.gov.ng. Companies that believe their inclusion on the delisting list is erroneous can contest it by emailing compliance@cac.gov.ng within 30 days, providing verifiable proof of compliance.

The consequences of delisting are severe: once a company is removed from the register, it becomes illegal for it to continue operating under its registered name, as it is deemed dissolved. The only recourse for a delisted company to be restored to the register is through a Federal High Court order.

The CAC has also advised stakeholders and the general public to diligently verify the status of companies before engaging in any business transactions, as dealings with dissolved entities are considered void under Nigerian law.

This is not an unprecedented move by the CAC. The Commission has undertaken similar delisting exercises in previous years, including in July 2023 (where 91,843 companies were removed), 2017 (44,000 companies), 2018 (over 40,000 companies), and 2024 (80,429 companies, including some notable names). These consistent actions underscore the CAC’s resolve to enforce compliance.

The broader purpose of this delisting drive aligns with international best practices aimed at enhancing transparency in company ownership, curbing financial crime, and bolstering public trust in Nigeria’s corporate regulatory framework. It forms part of the government’s wider reforms to foster a robust and accountable business ecosystem, particularly in line with anti-money laundering standards and initiatives promoting the ease of doing business.

The CAC has reiterated that registering companies without plans for operationalization, often referred to as “shelf” or “briefcase” companies, is detrimental to the economy, necessitating their removal from the official register.

The latest enforcement action, supported by Section 692 of CAMA 2020, follows the CAC’s ongoing efforts to modernize its operations, including the introduction of the Intelligent Company Registration Portal (ICRP).

A comprehensive list of the affected companies has been published on the CAC’s official website (www.cac.gov.ng).