CAC Deregisters Over 400,000 Companies in 2025 Over Non-Compliance

CAC Deregisters Over 400,000 Companies in 2025 Over Non-Compliance

  • Business
  • February 8, 2026
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The Corporate Affairs Commission (CAC) has deregistered more than 400,000 companies across Nigeria in 2025 over prolonged inactivity and failure to comply with statutory obligations, particularly the non-filing of annual returns.

The sweeping action, announced by the Commission, is part of efforts to sanitise Nigeria’s corporate register and strengthen transparency, accountability, and ease of doing business in the country.

According to the CAC, the affected entities had consistently failed to meet basic legal requirements under the Companies and Allied Matters Act (CAMA), including keeping their annual returns up to date, despite multiple public notices and grace periods issued over the years.

The Commission explained that maintaining an accurate and credible register is critical for investors, regulators, financial institutions, and the general public, noting that inactive and non-compliant companies undermine trust in the corporate system.
“Companies that fail to file annual returns for a prolonged period are deemed inactive and in breach of the law. Deregistration is a lawful step to ensure the integrity of our records,” the CAC stated.

The exercise affects both private and public companies, as well as business names that have shown no evidence of operations or compliance for several years. The CAC stressed that the deregistration does not absolve directors or proprietors of any existing liabilities incurred before the companies were struck off.

However, the Commission disclosed that affected companies may apply for relisting, provided they can show evidence of genuine business activity and fulfil all outstanding statutory obligations, including payment of penalties and filing of overdue returns.

Business and legal experts have described the move as a positive step toward cleaning up Nigeria’s corporate space, while also urging entrepreneurs and company owners to take compliance matters more seriously.

The CAC advised all registered entities to regularly check their compliance status on the Commission’s portal and ensure timely filing of annual returns to avoid sanctions.

Kwale Post reports that the deregistration exercise is expected to improve the reliability of corporate data in Nigeria and boost investor confidence in the long run.