CAC Moves to Delist 100,000 Dormant Companies, Grants 90-Day Grace Period
Abuja, – The Corporate Affairs Commission (CAC) has announced plans to strike off over 100,000 dormant companies from its register in a sweeping regulatory cleanup aimed at improving business transparency and compliance. Affected firms have been given a 90-day grace period to regularize their status or risk dissolution.
Why the Crackdown?
The CAC, Nigeria’s official company registry, stated that the move targets businesses that have failed to file annual returns, maintain updated records, or show evidence of active operations for an extended period.
“A bloated register with inactive companies undermines the integrity of Nigeria’s corporate database,” said CAC Registrar-General Alhaji Garba Abubakar. “This exercise will ensure only compliant and operational businesses remain recognized.”
Key Implications
- Revival Option: Companies marked for delisting can avoid removal by updating their filings, paying outstanding fees, and submitting proof of activity within the 90-day window.
- Loss of Legal Status: Struck-off firms will lose their corporate rights, including the ability to enter contracts, sue, or own assets in the company’s name.
- Debt and Liability Risks: Directors of dissolved companies may still face liabilities for unsettled obligations.
Mixed Reactions from Business Community
While industry groups like the Lagos Chamber of Commerce and Industry (LCCI) support the move as a way to reduce regulatory clutter, small business owners have raised concerns over potential unintended consequences.
“Some dormant companies are strategic reserves or projects on hold—not necessarily defunct,” said a financial consultant in Abuja. “The CAC should allow for clearer exemptions.”
Next Steps
The commission has pledged to publish the list of affected companies on its website and in national dailies, urging stakeholders to verify their status promptly.
Expert Advice:
- Check CAC Portal: Businesses should log in to the CAC’s online portal or visit their offices to confirm compliance status.
- Seek Professional Help: Legal and accounting experts advise affected firms to act swiftly to avoid penalties or irreversible dissolution.
This purge aligns with broader government efforts to streamline Nigeria’s business environment and curb misuse of corporate entities for illicit activities.
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