CAC To Delete 100,000 Firms Over Failure To File Annual Returns

The Corporate Affairs Commission (CAC) has announced plans to strike off 100,000 companies that have failed to file their annual returns in the last decade.

The registrar-general/CEO of the CAC, Alhaji Garba Abubakar, made this revelation during a Training Workshop on the Use of the Beneficial Ownership Register(BOR) in Lagos.

According to Garba Abubakar, the affected companies will receive notices of striking off before the commission takes action, as stipulated in section 692 of the CAMA, 2020.

However, he said, these companies have the opportunity to be relisted upon payment of their outstanding debts and an order from the court, as provided by the law. He urged companies to ensure timely payment of their annual returns to avoid being struck out.

Speaking about Africa’s first Beneficial Ownership Register, which was built by the CAC with the assistance of the World Bank, the registrar-general emphasised its potential to curb corruption, money laundering, and terrorism financing.

He called on stakeholders, including investigating agencies, legal practitioners, journalists, and civil society organisations, to utilise the BOR effectively in fulfilling their responsibilities.

The chairman of the Nigerian Bar Association(NBA) section on Business Law, Dr. Adeyeye Adefulu, applauded CAC for achieving another significant milestone and pledged the NBA-SBL’s continued support and collaboration with the commission. He urged members to utilise the knowledge gained during the training to benefit the Nigerian economy.

While highlighting the importance of the BOR in combating money laundering and terrorism financing, the president of the Association of Bureau De Change Operators of Nigeria (ABDCON), Aminu Gwadabe, emphasised the need for professionals to exercise due diligence when dealing with clients.

The workshop featured presentations from the Special Control Unit against Money Laundering (SCUML), the Nigeria Financial Intelligence Unit (NFIU), and the Securities and Exchange Commission (SEC), providing valuable insights into the fight against financial crimes and illicit activities.

As CAC takes decisive steps to enforce compliance and promote financial transparency, stakeholders are called upon to play their part in ensuring the integrity of Nigeria’s business landscape.