-
CAC flags banks for regulatory lapses
-
248 fake company registrations sent to EFCC
-
Three CAC staff handed to ICPC over misconduct
The Corporate Affairs Commission (CAC) has accused some banks and financial institutions of undermining Nigeria’s anti-corruption and regulatory compliance efforts by allowing inactive and non-compliant companies to continue operating and conducting financial transactions.
The accusation was made by the Registrar-General of CAC, Hussaini Magaji (SAN), on Tuesday in Abuja during an Anti-Corruption Day presentation and panel discussion marking the Commission’s 35th anniversary.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
Magaji said the Commission had forwarded 248 suspected fake company registrations to the Economic and Financial Crimes Commission (EFCC) for investigation and possible prosecution.
He also disclosed that three CAC staff members were handed over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over alleged professional misconduct.
Addressing representatives of anti-corruption and law enforcement agencies, Magaji warned that Nigeria’s corporate regulatory system would remain vulnerable if compliance enforcement was not uniformly applied.
He stated that any company that fails to fully disclose its Persons with Significant Control (PSC) is classified as inactive and considered unfit for legitimate transactions.
Magaji expressed concern that despite being flagged by CAC, some inactive companies were still being allowed by banks to open accounts, operate, and transact freely.
READ ALSO: FIRS Confirms NIN, CAC Numbers as Official Tax ID From 2026
He described the practice as a major weakness in Nigeria’s national compliance framework and called for stronger collaboration among regulatory institutions.
The CAC Registrar-General stressed that non-compliant companies should not benefit from the privileges of legality under any circumstances.
He said CAC had implemented internal reforms to strengthen transparency and integrity within the Commission.
Magaji disclosed that 248 fictitious company registrations were unlawfully inserted into the CAC database and subsequently reported to the EFCC.
He added that the entities lacked verifiable corporate identities, failed to meet tax obligations, and did not contribute to government revenue.
According to him, an additional 15 suspicious entities have also been submitted for further investigation.
Magaji noted that no legal challenge had been filed against the Commission regarding the removal and reporting of the illegal registrations.
He renewed calls for the establishment of a unified national beneficial ownership register, warning that Nigeria’s fragmented system creates loopholes that enable corruption, money laundering, and illicit financial activities.