By Otobong Gabriel, Abuja
In what may be the most aggressive clean-up of Nigeria’s corporate registry in recent years, the Corporate Affairs Commission (CAC) has de-registered over 400,000 inactive and non-compliant companies, signalling a major push to restore order, credibility, and transparency to the country’s business environment.
Registrar-General of the CAC, Hussaini Magaji, announced the development in Abuja, describing the action as part of a broader reform strategy to sanitise the national database and modernise service delivery.
According to him, thousands of dormant and abandoned businesses had long crowded the register, weakening oversight and undermining trust in Nigeria’s corporate records.
“The commission de-registered over 400,000 companies in a bid to clean up our database from inactive and non-compliant entities,” Magaji said.
Clearing the System of ‘Dead Weight’
For years, Nigeria’s business register has carried what experts often describe as “ghost companies” — entities that exist only on paper but have stopped operating or failed to meet statutory obligations.
Such companies create loopholes for fraud, distort official data, and complicate regulation.
By removing them, the CAC aims to produce a database that truly reflects active businesses, making monitoring easier for regulators and boosting confidence for investors and partners who rely on accurate corporate information.
In essence, the clean-up is about credibility as much as compliance.
From Queues to Clicks: CAC Goes Fully Online
Beyond the mass de-registration, the commission has also completed a full digital transformation of its services.
Magaji said the agency has moved away from its traditional manual, location-based operations to a 24/7 online, end-to-end system that allows entrepreneurs to register and manage companies from anywhere in the world.
“You can register your business from your room without coming to our offices. Today, CAC provides services anywhere, anytime,” he stated.
This shift eliminates long queues, paperwork bottlenecks, and the need for physical visits — problems that previously discouraged many small business owners from formalising their ventures.
The reform aligns with the Federal Government’s broader goal of improving Nigeria’s ease of doing business ranking.
Free Registration for 250,000 Entrepreneurs
In a parallel effort to support micro, small, and medium enterprises, the CAC partnered with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to offer free business registration to 250,000 entrepreneurs.
The initiative is designed to lower the cost of formalisation and bring more small businesses into the regulated economy.
For many startups, registration fees and bureaucracy have long been barriers. Removing those hurdles could help businesses access funding, contracts, and legal protections that come with formal status.
Boosting Transparency with Ownership Disclosure
The commission has also operationalised a beneficial ownership register, allowing the public to identify the true individuals behind companies operating in Nigeria.
This measure targets anonymous ownership structures often linked to corruption, tax evasion, and illicit financial flows.
By making ownership more transparent, the CAC hopes to strengthen accountability and align Nigeria with international corporate governance standards.
A Turning Point for Business Regulation?
Taken together, the reforms mark a significant shift in how corporate regulation is handled in Nigeria.
From deleting hundreds of thousands of inactive companies to embracing digital technology and supporting small businesses, the CAC appears to be repositioning itself as a modern service-driven regulator rather than a slow bureaucratic agency.
If sustained, these measures could reshape how easily Nigerians start and run businesses — and how confidently investors view the system.
For entrepreneurs, the takeaway is straightforward: formalising a business has never been easier — or more necessary.
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