In 2025, Nigeria’s Corporate Affairs Commission (CAC) will have deleted over 400,000 inactive and non-compliant firms from its official registry, as part of a significant effort to improve the precision and reliability of the national companies database and strengthen corporate governance. Registrar-General Hussaini Magaji made this announcement at a “Celebration Walk” event organised by the CAC in Abuja on Saturday.
Magaji clarified that the deregistration aimed at firms that had become inactive, did not submit annual returns, or otherwise disregarded their legal obligations for long durations—typically existing solely on paper without active business activities.
“In 2025, the commission removed more than 400,000 companies from the register,” Magaji mentioned, highlighting that this action was crucial to mitigate risks related to economic transparency and guarantee that the register accurately reflects operational, compliant businesses.
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The exercise is part of wider reforms, such as the CAC’s transition to a completely digital online system that allows for business registration and additional services remotely accessible 24/7 from any location, including Nigerians abroad. This modernisation has decreased physical visits, shortened delays, lowered chances for corruption, and enhanced Nigeria’s overall business environment.
To enhance entrepreneurship, the CAC collaborated with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to offer free business registrations for 250,000 entrepreneurs, assisting in lowering barriers to formalization.
Moreover, Magaji emphasised the implementation of a beneficial ownership registry, which enhances transparency by making the actual owners of businesses publicly known. This instrument has received global acclaim as a critical measure in Nigeria’s battle against financial offences and money laundering.
The registrar-general reiterated the commission’s dedication to rigorous enforcement, warning that ongoing non-compliance will lead to continued removal from the register. With these reforms, the CAC aims to create a more transparent and business-friendly environment in Nigeria.
