The Corporate Affairs Commission (CAC) has officially removed over 400,000 inactive and non-compliant companies from its register. This massive cleanup, announced by the Registrar-General Hussaini Ishaq Magaji during the commission's 35th anniversary,

 

The Corporate Affairs Commission (CAC) has officially removed over 400,000 inactive and non-compliant companies from its register. This massive cleanup, announced by the Registrar-General Hussaini Ishaq Magaji during the commission's 35th anniversary, targets entities that failed to file annual returns for several years and were largely considered "shell" or "ghost" companies. 

Key details regarding this enforcement exercise include:

• Primary Reason for Delisting: Most affected firms were dormant and had not submitted the mandatory Annual Returns required by the Companies and Allied Matters Act (CAMA) 2020.
• Legal Consequences: Delisted companies lose their legal status as corporate entities and are prohibited from conducting business, entering contracts, or operating bank accounts under their registered names.
• Restoration Process: A company that has been struck off the register can only be restored through an order from the Federal High Court.
• Digital Transformation: The move is part of the CAC's shift to a fully digital registry to improve transparency and enhance the ease of doing business in Nigeria.
• Verification: Business owners can verify their current status by using the CAC Public Search tool on the commission's website. 

To avoid being included in future delisting phases, active companies must log into the CAC Registration Portal to update their annual returns and beneficial ownership information.