Amanze ChinonyeThe Corporate Affairs Commission (CAC) has announced plans to delist 100,000 dormant companies from its register, in what it described as the fifth phase of its regulatory cleanup exercise.
The move targets entities that have failed to file annual returns or meet other statutory obligations for over a decade, in violation of the Companies and Allied Matters Act (CAMA) 2020.
Join our WhatsApp ChannelIn a public notice issued on Tuesday, the CAC stated that it has commenced the process of delisting the non-compliant entities and has granted a 90-day grace period for affected companies to regularize their filings and avoid dissolution.
“This regulatory action is in line with Section 692(3) and (4) of the Companies and Allied Matters Act, 2020. Companies that fail to comply within the 90-day window shall be struck off the register and deemed dissolved,” the Commission said in a statement published on its X handle (formerly Twitter) and on its website.
The list of affected companies has been published on the Commission’s website, and the CAC has urged stakeholders to verify the status of their registered businesses. Companies wishing to remain active must file all outstanding annual returns, provide or update details of Persons with Significant Control (PSC), and send an activation request via email to the Commission along with proof of compliance. The 90-day window will elapse by late October 2025, after which the delisting becomes final. Once struck off, companies lose their legal standing and can no longer operate as corporate entities.
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Registrar-General of the CAC, Hussaini Ishaq Magaji(SAN), emphasized that the cleanup exercise is not meant to punish businesses but to enhance transparency and regulatory compliance in the corporate environment. “Dormant and untraceable companies pose a risk to the economy. They can be used for illicit financial flows, tax evasion, and other criminal purposes. This strike-off is necessary to ensure the integrity of the corporate registry,” Hussaini said.
He also noted that the Commission had observed a recurring pattern of companies incorporating for short-term contract bids and abandoning compliance obligations soon after.
Legal experts warn that companies struck off the CAC register are no longer recognized as legal persons. This means their bank accounts may be frozen by financial institutions, they cannot initiate or defend lawsuits in court, and existing contracts, licenses, and obligations could be rendered void. Directors and stakeholders may also lose access to company assets.
“Once struck off, a company ceases to exist in the eyes of the law. Any person dealing with such an entity does so at their own risk,” said corporate law specialist, Barrister Amaka Okonkwo.
Companies that miss the October deadline may still seek restoration, but only by applying to the Federal High Court, a process that involves legal fees, court filings, and possible penalties. Once court approval is obtained, the company must notify the CAC and re-file all relevant documents. The Commission advised such companies to act swiftly now rather than go through the costly and time-consuming process of reinstatement.
This is not the first time the CAC has purged dormant firms. Similar exercises in 2021 and 2023 saw thousands of inactive businesses removed from the register. While many welcomed the move for enhancing corporate integrity, critics argued that limited awareness and high filing costs discourage compliance, especially among Micro, Small, and Medium Enterprises (MSMEs). Nonetheless, the Commission has stated it will not reverse its position, noting that companies had more than sufficient time to fulfill basic obligations like annual returns.
The CAC has encouraged companies to confirm their registration status via its company search portal, file overdue annual returns on the e-services platform, update beneficial ownership information, and submit evidence of compliance before the October 29 deadline. Failure to do so will result in the company being formally struck off and dissolved.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
