CAC To Delist 100,000 Dormant Companies, Gives 90-day Ultimatum

The Corporate Affairs Commission (CAC) has threatened to delist 100,000 companies from its register over prolonged inactivity and non-compliance with statutory requirements under the Companies and Allied Matters Act (CAMA).

The move is part of the Commission’s efforts to sanitise Nigeria’s corporate registry and ensure that only active and compliant entities remain in the system.

It also aligns with ongoing efforts to enhance transparency in the company’s ownership and governance in line with anti-money laundering standards.

A public notice issued by the Commission said the affected companies had been identified as either not carrying on business, inactive for at least 10 years, or failing to meet regulatory obligations, particularly the annual filing of returns and disclosure of Persons with Significant Control (PSC).

The CAC has given these companies a 90-day window from the date of publication to regularise their status.

However, to avoid being struck off, affected companies must promptly file all outstanding annual returns and send activation emails to [email protected], where applicable.

The notice emphasised, “It shall be unlawful for any company struck off the Register of Companies to continue carrying on business unless it is restored by an order of the Federal High Court. ” It reminded the public of a similar notice in July last year, where it delisted several companies in November.

The Commission said it invoked its powers under Section 692 (4) of CAMA 2020 to strike off companies that failed or refused to update their annual returns within the stipulated time frame. The delisted companies were deemed dissolved, effective from the date of publication.

“The general public may recall that the Commission issued a Notice of Intention to strike off the names of Companies, which the Commission has reasonable cause to believe are not carrying out business or are otherwise dormant because they have not filed Annual Returns for 10 years. A statutory period of 90 days was given to such companies to file the requisite annual returns and send activation emails to [email protected],” the Commission stated.

“Companies stricken off the register are deemed to have been dissolved from the publication date. It is illegal to enter into any transaction or deal with a company that has been dissolved,” the statement added.