CAC Hands Over 248 Fake Registration Cases To EFCC

…Flags corporate non-compliance, urges legal reforms to close anti-corruption gaps

The Corporate Affairs Commission (CAC) said it had handed over 248 fake company registration cases to the Economic and Financial Crimes Commission (EFCC) for investigation, underscoring a deepening drive against corporate fraud and abuse of the corporate vehicle in Nigeria’s formal economy.

The CAC also raised the  alarm over loopholes in Nigeria’s corporate regulatory framework, calling for urgent legislative reforms to strengthen anti-corruption enforcement and prevent misuse of the corporate vehicle.

Registrar-general and chief executive officer of CAC, Hussaini Magaji, in his welcome address on Anti-Corruption Day at the Commission’s 35th anniversary celebration, said the fake registrations illegally inserted into CAC’s corporate database represent a significant threat to national revenue, regulatory compliance, and investor confidence.

“These purported entities were operating within the Nigerian system without traceable corporate identity and without contributing to national revenue through taxation. We have taken decisive action to ensure these anomalies are fully investigated and prosecuted,” he said.

The submission follows an internal review by CAC that revealed the registrations had been inserted through unlawful means, prompting referral to the EFCC’s investigative arm. An additional 15 suspect entities have also been flagged for further enforcement action.

In an unprecedented acknowledgment of internal checks, the registrar-general said CAC had also referred three members of its own staff to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over alleged misconduct, including unauthorised tampering with company records.

“These actions demonstrate our zero-tolerance position on corruption and organized abuse of corporate data,” he said.

The disclosures came amid broader concerns about corporate regulatory compliance and the manipulation of corporate identity for illicit financial activities, including money laundering and asset concealment.

While the Registrar-general lauded the progress Nigeria has made in establishing beneficial ownership transparency frameworks, he warned that systemic gaps particularly fragmented ownership registers across sectors have weakened enforcement capacity.

“At the moment, we operate a fragmented system where certain sectors maintain separate beneficial ownership registers outside the central national register managed by CAC. This situation creates duplication, inconsistencies, and regulatory loopholes that undermine law enforcement efforts,” he said.

He urged the creation of a single, harmonised national register for beneficial ownership, positioning CAC as the statutory repository capable of supporting coordinated, intelligence-driven investigations.

The registrar-general also highlighted a troubling trend where companies flagged as non-compliant due to failure to disclose Persons with Significant Control (PSC), continue to transact through financial institutions. He called for concerted action across regulators and financial institutions to ensure compliance status translates to enforcement outcomes.

“Non-compliant companies must not enjoy the privileges of legality,” he said, adding that the practice undermines the rule of law and corrodes regulatory effectiveness.

Acknowledging pushback against CAC’s internal enforcement measures, including personal attacks on its leadership, the registrar-general defended the Commission’s actions as necessary and lawful, with no legitimate legal challenge brought against the removal and reporting of the fake registrations.

Concluding his address, the registrar-general reiterated that the fight against corporate fraud and corruption is a national duty requiring sustained interagency cooperation, and not the responsibility of any single agency.

He called on the EFCC, ICPC, Nigerian Financial Intelligence Unit (NFIU), and other partners to strengthen collaboration with CAC to safeguard the integrity of Nigeria’s corporate ecosystem.

“Without coordinated, structured, and institutionalised collaboration, our collective efforts will fall short of delivering measurable outcomes for Nigeria,” he said.

Meanwhile, speaking on the fifth day of CAC’s 35th Anniversary Celebration, designated Anti-Corruption Day, the registrar-general and  chief executive officer, Hussaini Magaji, said the Commission has observed significant gaps that allow companies to operate outside legal and ethical compliance, undermining national anti-corruption efforts.

“Some companies continue to operate despite being flagged as inactive for failing to disclose their Persons with Significant Control (PSC) . Financial institutions must no longer allow non-compliant entities to transact. Our regulatory ecosystem must speak with one voice,” he said.

The registrar-general highlighted CAC’s frontline role in curbing corporate fraud, noting that the Commission maintains detailed corporate records crucial for tracing ownership, dismantling illicit structures, and supporting law enforcement.

In a demonstration of zero tolerance, he disclosed that CAC recently submitted 248 fake company registrations to the EFCC for investigation, while three staff members were referred to ICPC for alleged record tampering. An additional 15 companies with irregularities have been flagged for further inquiry.

“These actions show that internal integrity is as critical as external enforcement. No agency can fight corporate fraud alone; coordination and sustained collaboration are essential,” he said.

The Commission also highlighted systemic weaknesses in Nigeria’s beneficial ownership framework, where sector-specific registers outside CAC create duplication and regulatory loopholes.

“We must move toward a single, harmonised national register for beneficial ownership. Such a reform will reduce abuse, improve verification, and align Nigeria with global anti-money laundering standards,” he said.

He noted that recent international developments, including UK court decisions on property linked to Nigerian owners, underscore the global trend toward transparency but insisted that the passage of PSC Rules into law is vital to prevent sophisticated abuse of corporate entities.

The registrar-general further warned that disclosure of entities rather than individuals as beneficial owners undermines accountability and creates layers of concealment. “This is not just a CAC matter. It is a national reform issue requiring legislative action,” he said.

Concluding his address, the registrar-general urged all anti-corruption agencies and stakeholders to institutionalise collaboration with CAC, stressing that the fight against corruption is a shared national duty.