Business owners on alert as CAC set to delist 100,000 companies, gives reasons

Femi Fabunmi 

The Corporate Affairs Commission (CAC) has issued a 90-day ultimatum to 100,000 companies at risk of being delisted from its register due to prolonged inactivity and non-compliance with statutory obligations under the Companies and Allied Matters Act (CAMA) 2020.

In a public notice, the CAC stated that the affected companies had either failed to carry on business, remained inactive for at least ten years, or neglected essential regulatory duties such as filing annual returns and disclosing Persons with Significant Control (PSC).

This action is part of the Commission’s broader effort to sanitise Nigeria’s corporate registry, boost compliance, and align with international standards for anti-money laundering and corporate governance transparency.

The Commission emphasized that once a company is struck off the register, it becomes illegal for it to continue operations unless restored by an order of the Federal High Court.

Affected companies have been advised to regularise their status within the 90-day window by filing all outstanding returns and, where necessary, contacting the CAC via [email protected].

This current exercise is in line with Section 692(4) of CAMA 2020, which authorises the CAC to strike off non-compliant companies.

The Commission recalled a similar enforcement drive in July 2023, which led to the delisting of several companies in November 2023 after they failed to comply.

According to the notice, any company struck off the register is considered dissolved from the date of publication, and entering into transactions with such entities is illegal.