Around 100,000 Nigerian companies have been given a three-month deadline to update their regulatory records with the Corporate Affairs Commission (CAC) or risk being struck off the official register. The enforcement action, announced under Section 692 of the Companies and Allied Matters Act 2020, targets firms that have failed to file required annual returns or submit current information on Persons with Significant Control (PSC). The CAC has already identified the affected entities and published their details on its official website, giving each company until the end of the 90-day window to comply.
Companies must clear all outstanding filings and provide proof of compliance through the designated CAC channel before the deadline. Failure to act within this period will result in immediate removal from the register without further notice. The CAC emphasized that annual returns are critical for verifying a company’s active status and ensuring accurate records of directors, shareholders, registered addresses, and corporate structure. These filings are distinct from tax returns submitted to tax authorities, meaning a business can meet its tax obligations while still being in default with the CAC.
The directive also includes mandatory disclosure of Persons with Significant Control, which identifies individuals who own or influence a company, even through indirect arrangements. This information is vital for financial institutions and regulators combating money laundering, corruption, tax evasion, and the misuse of anonymous corporate structures. Complete and up-to-date PSC records help ensure transparency and support investigations into illicit financial activities.
Being struck off the register can have serious consequences beyond regulatory penalties. Banks, investors, customers, and government agencies often verify a company’s legal status before approving transactions, contracts, or credit facilities. An inactive status may disrupt account operations, financing applications, property dealings, licence renewals, and participation in public procurement. Businesses seeking investment may also face increased scrutiny if their statutory records are incomplete or outdated.
Directors are reminded that compliance is the company’s responsibility, not solely that of external accountants, lawyers, or company secretaries. Each business must confirm that filings have been successfully processed and accepted by the CAC, as mere initiation of payment or document preparation does not guarantee compliance. Affected companies should check their registration status, review changes in ownership, directorship, control arrangements, and registered addresses, and complete the necessary regularisation steps.
This enforcement round is part of the CAC’s ongoing effort to clean up Nigeria’s corporate registry. The commission previously removed over 400,000 dormant entities in 2025 and launched a similar action in early 2026 affecting approximately 100,000 companies. The initiative aims to enhance the accuracy and reliability of Nigeria’s corporate database, supporting transparency, economic growth, and regulatory efficiency. As the deadline approaches, businesses are urged to act promptly to avoid operational disruptions and legal complications.
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