CAC to Strike Off Companies from Register

What’s Happening?

The Corporate Affairs Commission (CAC) has officially commenced the process of delisting approximately 100,000 companies from its corporate registry. These are entities identified as dormant, inactive for 10 years or more, or in breach of statutory filing obligations under CAMA 2020.

Legal Basis: CAMA 2020 Sections 692(3) & (4)

Under Sections 692(3) and (4) of the Companies and Allied Matters Act 2020, CAC is empowered to strike off companies that:

• Fail to file Annual Returns on time (over a decade of default), and
• Neglect to update information regarding Persons with Significant Control (PSC) or beneficial ownership.

This is part of CAC’s efforts to cleanse the corporate registry, increase transparency and combat illicit financial operations

The 90-Day Grace Window

• CAC has given affected companies a 90-day compliance window from the date of public notice (around July 29–30, 2025) to:
  • File all outstanding Annual Returns, and
  • Update PSC / beneficial ownership data, and
  • Send activation email to activation@cac.gov.ng (for eligible filings)
• Failure to comply within this period means automatic strike-off and dissolution.

Consequences of Being Struck Off

Once a company is removed:

• It loses its legal entity status, corporate identity, and rights to do business,
• Any transactions under that name are considered illegal and invalid,
• Restoration requires a formal Federal High Court order, a process that is expensive and time‑consuming.

Why CAC Is Doing This

• To sanitize Nigeria’s corporate registrar, removing stale and inactive entities,
• To align with international anti‑money laundering (AML) and corporate governance standards,
• To improve business environment credibility by ensuring only active, compliant companies are registered

How It Affects Businesses

For Affected Companies:

• Check if your company is on the published list on CAC’s website.
• Immediately file any overdue Annual Returns, update PSC information, and send required email confirmations.

For Partners, Vendors & Investors:

• Use CAC’s published list to verify legitimacy of counterparties. Avoid dealings with companies pending removal or recently struck off.

For Companies in Good Standing:

• Maintain timely submissions yearly (Annual Returns within 42 days of each incorporation anniversary for companies; Business Names by June 30).
• Keep PSC / ownership information current to avoid future notices’

Key Snapshot

Final Summary

• When & What: Starting late July 2025, CAC is delisting ~100,000 companies for long-term inactivity and non‑compliance.
• Why: Based on Sections 692(3) and (4) of CAMA 2020, promoting transparency and regulatory discipline.
• Deadline: Affected companies have 90 days from notice to file Annual Returns, update PSC details, and send activation emails.
• Risk: Struck‑off entities lose legal status; transactions become invalid; restoration requires court action.
• Takeaway: Companies must prioritize statutory filings and ownership disclosures—or be removed from Nigeria’s business registry.

To avoid delisting of your company, contact us.

Adebayo Oluwole

Adebayo Oluwole is a seasoned chartered accountant and a member of Chartered Institute of Taxation of Nigeria with over twenty years of experience. His expertise cuts across accounting, auditing and taxation. He has helped hundreds of individuals translate their dreams into reality by offering them pre and post registration services. His focus is to help SMEs grow in the marketplace.