The Great Clean-Up: CAC Delists 400,000 Companies to Sanitize Registry

In a major move to bolster Nigeria’s economic integrity, the Corporate Affairs Commission (CAC) has delisted more than 400,000 inactive and non-compliant companies from its official register. Announced by Registrar-General Hussaini Ishaq Magaji during the Commission’s 35th-anniversary celebrations in February 2026, the exercise targeted “shell companies” that posed significant risks to transparency and investor trust.

This regulatory sweep is part of a broader transformation of the CAC from a manual, location-bound registry into a fully digital corporate regulator.

1. Why the 400,000 were Delisted

The massive de-registration effort, primarily carried out throughout 2025, focused on entities that had become “threats” to the economy.

• Failure to File Returns: Most affected companies had failed to file statutory annual returns for several years, a key indicator of dormancy.

• Shell Company Risks: Delisting these entities prevents their use in illicit financial flows, money laundering, or fraudulent contracts.

• Database Credibility: The goal is to ensure that the national register only contains active, tax-paying, and verifiable businesses, giving local and foreign investors a reliable “source of truth.”

2. Digital Transformation: “Anywhere, Anytime”

The CAC marks its 35th year (1991–2026) as Nigeria’s first end-to-end fully digital government agency.

• Global Access: Nigerians at home and in the diaspora can now register businesses, file returns, and manage corporate affairs 24/7 without visiting a physical office.

• Beneficial Ownership Register: The Commission has fully operationalized a central register that exposes the ultimate individuals behind corporate entities, eliminating the anonymity often used for corporate abuse.

• AI and Automation: The CAC is deploying AI for business name reservations and has introduced API services to support banks, embassies, and security agencies in real-time verification.

3. Support for the Grassroots (MSMEs)

While the CAC is cracking down on non-compliance, it is also lowering the barrier for legitimate small businesses.

• Free Registrations: In 2025, the CAC facilitated the free registration of 250,000 MSMEs in partnership with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

• Formalization Drive: This initiative helped bring over four million informal businesses into the tax net, providing them with legal recognition and access to credit.

4. Staff Welfare and Institutional Growth

To sustain its digital efficiency, the Commission is investing heavily in its workforce:

• Healthcare & Housing: Plans are underway to establish a CAC-managed hospital by the end of 2026 to serve staff and retirees.

• Loan Schemes: New housing and car loan programs have been introduced to boost employee morale and career progression.

The Evolution of the CAC (1991 vs. 2026)

“We want to know the ultimate people behind any company in Nigeria. You just visit our Beneficial Ownership Register… there is nowhere to hide.” — Hussaini Ishaq Magaji, Registrar-General of the CAC.