100,000 firms risk delisting as CAC enforces compliance

Nigeria's Corporate Affairs Commission (CAC) has begun a new enforcement drive, putting approximately 100,000 companies at risk of being delisted from the country's official register. The commission cited the failure of these companies to meet their statutory filing obligations as the reason for the action.

The CAC announced the exercise in a public notice, stating that it is being conducted under Sections 692(3) and (4) of the Companies and Allied Matters Act, 2020. Companies affected by this measure have been given a 90-day grace period to rectify their records. This includes filing all outstanding annual returns and submitting crucial information regarding Persons with Significant Control, also known as beneficial ownership details.

According to the commission, the names of the 100,000 companies facing potential delisting have already been published on its official website. Firms that choose to comply with the directive are instructed to submit evidence of their compliance to the CAC via a designated email address. The commission issued a stern warning: companies that fail to meet the 90-day deadline will be removed from the register without further notification.

This latest enforcement action is part of the CAC's ongoing efforts to clean up Nigeria's corporate registry. The goal is to remove inactive companies and those that have consistently neglected their legal duties. The commission emphasizes that maintaining an accurate and reliable register is vital for enhancing transparency in Nigeria's corporate landscape, bolstering investor confidence, and ensuring that only active and compliant businesses remain on its database. This is not the first time the CAC has undertaken such a large-scale compliance exercise; earlier this year, it announced plans to strike off another 100,000 companies due to prolonged inactivity and non-compliance.

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This is to notify the General Public and Esteemed Customers that the Corporate Affairs Commission has commenced another round of striking off names of companies from the Register pursuant to the provisions of Section 692 (3) and (4) of the Companies and Allied Matters Act, 2020. The list of the affected 100,000 companies can be accessed on the Commission’s website. The affected companies are hereby advised to take steps to file all outstanding Annual Returns (and, by extension, Persons with Significant Control/Beneficial Ownership information) and regularise their records within ninety (90) days of this notice. Evidence of compliance should be sent to the designated email address. Please note that companies that fail to comply within the stipulated timeline shall be struck off the Register without further notice. The commission remains committed to providing prompt and efficient services to the satisfaction of our valued customers.