As part of the Corporate Affairs Commission (CAC)‘s 35th-anniversary celebration in Abuja, Registrar-General Hussaini Ishaq Magaji, SAN, announced a major crackdown on corporate fraud. The commission has handed over 263 illegal entities to the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution, signaling a “zero-tolerance” approach to system manipulation.
This purge is part of a broader effort to sanitize Nigeria’s corporate database and ensure that all active businesses are traceable and tax-compliant.
1. The Breakdown of Illegal Entities
The discovered companies were categorized into two main groups based on how they entered the registry:
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System Insertion (248 Entities): These “fake” companies were fraudulently inserted into the CAC’s digital database through unlawful technical means. They lacked traceable corporate identities and were not contributing to national revenue.
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Suspicious Entities (15 Entities): An additional 15 companies were identified during routine audits as having highly suspicious profiles and were forwarded for deeper financial investigation.
2. Internal Disciplinary Actions
The “clean-up” was not limited to external entities. Magaji revealed that the commission has taken decisive steps to address internal collusion:
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ICPC Handover: Three CAC staff members have been surrendered to the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
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The Allegations: These employees are accused of unauthorized and suspicious tampering with official company records, likely facilitating the illegal insertions mentioned above.
3. Warning to Financial Institutions
In a stern address to the banking sector, the Registrar-General criticized some financial institutions for undermining the country’s anti-corruption efforts.
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The “Inactive” Flag: The CAC has flagged hundreds of thousands of companies as “Inactive” for failing to disclose their Persons with Significant Control (PSC) or file annual returns.
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The Loophole: Magaji noted with concern that despite these flags, some banks continue to allow these non-compliant companies to operate accounts and conduct multi-million naira transactions.
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The Directive: Banks are urged to stop enabling these entities, as they pose a systemic risk to the Nigerian economy.
CAC Integrity Drive: 2026 Snapshot
“The fight against corruption requires sacrifice and institutional courage. We have taken these decisive steps to eliminate the chances of compromise and demonstrate that our processes cannot be bought.” — Hussaini Ishaq Magaji, SAN, February 2026.
