The Digest:
The Corporate Affairs Commission (CAC) has removed over 400,000 inactive and non-compliant companies from its official register in 2025. Registrar-General Hussaini Magaji stated that the mass delisting was conducted to clean up the national database and safeguard the integrity of the corporate registry. He highlighted the commission's transition to a fully digital, 24/7 service model, allowing entrepreneurs to register businesses remotely. Magaji also noted initiatives supporting small businesses, including a partnership with SMEDAN to facilitate free business registrations for 250,000 entrepreneurs. Additionally, he emphasized the operationalization of a public beneficial ownership register, aimed at promoting transparency and combating financial crimes by revealing the ultimate owners of Nigerian companies.
Key Points:
- The delisting purges the registry of defunct entities, creating a more accurate and reliable database for investors and regulators.
- It underscores a regulatory shift towards enforcing compliance and maintaining an active corporate environment.
- The digital transformation significantly enhances the ease of doing business by simplifying and expediting registration processes.
- Support for SMEs through free registrations lowers the barrier to formalization, potentially boosting tax compliance and economic growth.
- The beneficial ownership register represents a major step in aligning Nigeria with global anti-corruption and financial transparency standards.
The CAC's aggressive delisting and digital reforms mark a concerted effort to modernize Nigeria's corporate regulatory framework, promote transparency, and foster a more credible business climate.
Sources: Corporate Affairs Commission Statement, Media Reports
