The Corporate Affairs Commission (CAC) has deregistered more than 400,000 inactive and non-compliant companies from Nigeria’s official corporate register in 2025.
The commission described the move as a major regulatory clean-up aimed at improving transparency and strengthening investor confidence in Nigeria’s business environment.
Registrar-General Hussaini Ishaq Magaji (SAN) said the affected companies were removed because they failed to file annual returns for years or had no evidence of active business operations.
According to him, keeping such dormant companies on the register weakens the credibility of Nigeria’s corporate data.
Why CAC Took the Action
Under the Companies and Allied Matters Act (CAMA) 2020, all registered companies are required to file annual returns and keep their records updated.
Failure to comply for a long period makes a company liable for deregistration.
CAC explained that inactive or “shell” companies can distort economic records and may also be used for fraudulent activities.
Removing them helps ensure the corporate database reflects only active and compliant businesses.
The announcement was made during activities marking CAC’s 35th anniversary in Abuja, where officials said the clean-up aligns Nigeria’s regulatory system with global best practices.
New Reforms Introduced by CAC in 2025
Beyond the mass deregistration, the commission also unveiled several key reforms:
Full digitalisation of operations, allowing 24/7 online business registration and management
Partnership with SMEDAN to provide free business registration for 250,000 entrepreneurs
Launch of a Beneficial Ownership Register to reveal the true owners of companies and combat money laundering
According to CAC, these reforms are designed to reduce bureaucracy, promote transparency, and encourage more Nigerians to formalize their businesses.
What This Means for Business Owners
CAC officials say the clean-up sends a strong message that compliance is no longer optional. Companies that fail to meet statutory obligations risk being removed from the official database.
The commission stressed that maintaining an accurate corporate registry is key to attracting both local and foreign investors who rely on credible business data.
