Nigeria’s Corporate Affairs Commission (CAC) has officially removed more than 400,000 inactive and non-compliant companies from its corporate registry in 2025 a major move aimed at sanitising the national register and boosting investor confidence in the country’s business environment.
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Registrar-General Mr. Hussaini Magaji, SAN, disclosed the development on Saturday in Abuja, during the Commission’s 35th anniversary celebrations.
He said the mass deregistration targets firms that had either remained dormant for years or failed to meet their statutory obligations under the Companies and Allied Matters Act (CAMA), particularly the compulsory filing of annual returns.
Key Highlights:
Over 400,000 companies struck off the CAC register in 2025 for inactivity and non-compliance.
Most affected entities had not filed annual returns or failed to meet legal reporting requirements.
CAC says cleaning up dormant and defaulting companies will strengthen transparency and credibility, and enhance confidence among local and foreign investors.
Mr. Magaji noted that maintaining an up-to-date and trusted corporate register is crucial to attracting investment and deterring the misuse of shell companies for illicit activities.
The Commission also highlighted its digital transformation, making business registration and compliance services accessible 24/7 online, bolstering Nigeria’s ease of doing business reforms.
In addition to the deregistration drive, CAC has partnered with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to facilitate free registration for 250,000 entrepreneurs, encouraging more small businesses to formalise and participate in the regulated economy.
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This sweeping corporate cleanup signals a stronger regulatory environment, improved business data integrity, and renewed confidence for investors all part of efforts to modernise Nigeria’s corporate sector and foster a more transparent and competitive economy.
Image Credit: Freepik
Source: Nairametrics
