The Corporate Affairs Commission (CAC) has announced plans to delist approximately 100,000 companies from its register, citing their failure to file annual returns for over a decade.
The regulatory body has given these dormant companies a 90-day grace period to submit all outstanding annual returns or face permanent removal from the database, as part of efforts to sanitize Nigeria’s business environment.
In a statement released on its website on Tuesday, the CAC emphasized that the action aligns with Section 692 (3) (4) of the Companies and Allied Matters Act (CAMA) No. 3 of 2020, which authorizes the commission to strike off defunct or dormant companies.
“This is to inform the general public that the commission intends to strike off from the register names of companies that have not filed annual returns for a period of 10 years,” the CAC stated.
A full list of the affected companies has been published on the commission’s website, the 90-day grace period, which allows companies to file their outstanding returns and notify the CAC via email at activation@cac.gov.ng to avoid delisting.
The commission has warned that it is illegal to conduct business under the name of a delisted company, as such entities are deemed dissolved.
Companies that believe they were wrongly listed can contest their inclusion by emailing compliance@cac.gov.ng within 30 days, providing proof of compliance.
This move follows a similar initiative in 2024, when the CAC delisted 80,429 companies, including notable names like Innoson “Vinod” International Limited and Dantama Biscuits Factory Ltd, after they failed to meet the filing deadline.
The commission noted that approximately 5,000 companies complied during the previous 90-day window, reducing the number of delisted entities from an initial 91,843.
The CAC’s ongoing efforts aim to address the issue of “ghost companies” that exist only on paper, often used to secure contracts without contributing to Nigeria’s economic growth.
Registrar General Garba Abubakar previously highlighted that nearly 90% of registered companies in Nigeria are dormant, and the need for regulatory action to ensure compliance and transparency.
Stakeholders have been urged to verify the status of companies before engaging in transactions, as dealing with a dissolved entity could result in legal consequences.
The CAC reiterated that only a Federal High Court order can restore a delisted company to the register, emphasizing the seriousness of the delisting process.
As the grace period counts down, the CAC’s actions signal a renewed commitment to fostering a robust and accountable business ecosystem in Nigeria, while raising questions about the operational challenges facing thousands of registered companies.
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