Nigeria’s Corporate Affairs Commission (CAC) has warned over 91,000 dormant companies, granting them a 90-day deadline to settle outstanding annual returns or face removal from its official register. This ultimatum targets companies that have failed to submit annual returns for the past decade. The announcement was made in a statement recently released on the CAC’s official website under the heading “NOTICE OF INTENTION TO STRIKE OFF COMPANIES FROM THE REGISTER.” According to the statement, the directive is under Section 692 (3) and (4) of the Companies and Allied Matters Act (CAMA) No. 3 of 2020.
CAMA mandates the Corporate Affairs Commission to remove from the Register the names of companies considered non-functioning or inactive due to non-compliance with annual return submissions. They have set a strict 90-day window for these companies to file their outstanding annual returns. Failure to do so will result in their names being struck off the Register. Every registered company and non-governmental organisation (NGO) must submit an annual return to them, regardless of whether the business is operational. This Regulation ensures that all entities remain accountable and up-to-date in their registration status.
Overdue firms were urged to file returns or face removal from the website.
Its statement emphasised the importance of compliance, urging all affected companies to file their overdue annual returns to avoid being removed from the official register. The commission has made the list of these companies available on its website, www.cac.gov.ng, for public viewing and verification. Also, their notice stated that companies listed as dormant over the past ten years are at risk of delisting under the provisions of Section 692 of CAMA. Companies that wish to retain their registration status must act within the 90-day grace period by submitting all pending annual returns and notifying them via email at [email protected].
They also underscored the legal implications of operating with a delisted company name. Any business using the name of a company removed from the register is considered illegal, as such companies are deemed dissolved under the country law. This move follows an announcement eight months ago when they first revealed its intention to delist 91,843 companies for failure to file annual returns. On December 5, 2023, the Commission provided an update indicating it was moving forward with striking off these companies following CAMA.
Stricter compliance will ensure accountable entities remain registered.
Also, they have issued a reminder for businesses that have previously submitted complete annual returns but still appear on the delisting list. These companies are advised to contact them to verify their removal from the list. Any difference should be reported to [email protected] within 30 days, accompanied by proof of filing. They clarified that once a company’s name is removed from the register, it cannot legally engage in business activities until a Federal High Court order reinstates its name.
This underscores the seriousness of maintaining compliance with annual return requirements to avoid operational disruptions. The CAC’s recent measures aim to enforce stricter compliance and ensure that only active and accountable entities remain in the official business register. Companies that fall under the jurisdiction of this new directive should take immediate action to prevent the loss of their legal status and avoid future complications. For further information and access to the full list of affected companies, stakeholders are encouraged to visit the CAC’s official website or contact the Commission directly through the provided email addresses.
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Overall, the Corporate Affairs Commission supports companies seeking assistance through its customer service channels. Stakeholders can access detailed guidance on filing requirements and deadlines by visiting their Help Desk or contacting the Commission’s support team. The Commission encourages companies to review their compliance status promptly and address any outstanding issues to avoid penalties. Lastly, businesses are advised to keep abreast of updates on their website, where real-time information and further instructions will be provided. Prompt action is crucial to protecting business operations and maintaining regulatory compliance.