The Corporate Affairs Commission (CAC) has issued a warning to commercial banks against permitting inactive or non-compliant companies to carry out financial transactions.
The commission disclosed that it has forwarded 263 illegally registered companies to the Economic and Financial Crimes Commission (EFCC) for investigation and possible prosecution.
Speaking at an event in Abuja to mark the CAC’s 35th anniversary, the Registrar-General and Chief Executive Officer of the commission, Hussaini Ishaq Magaji (SAN), revealed that 248 of the firms were fraudulently added to the CAC database, while 15 others were later uncovered and referred to the EFCC.
“In the year under review, we submitted a list of 248 fake company registrations to the EFCC. These entities were illegally inserted into our system through unlawful means,” Magaji said.
He explained that the firms were operating in Nigeria without verifiable corporate identities and were not contributing to national revenue.
“We subsequently identified and submitted an additional 15 such entities for further investigation,” he added.
According to Magaji, the affected companies had been active within the financial system without proper documentation or compliance with tax obligations.
The CAC boss cautioned banks against facilitating transactions for such entities, stressing the need for stricter compliance measures to safeguard the integrity of the corporate registry and Nigeria’s financial system.
He noted that the action forms part of broader reforms aimed at cleaning up the commission’s processes and curbing corporate fraud.
Magaji also disclosed that three CAC staff members had been handed over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over alleged involvement in unauthorised and suspicious activities linked to company records.
“These steps were taken to eliminate any risk of compromise and to reinforce integrity within our operations,” he said.
He reaffirmed the commission’s zero-tolerance stance on corruption, adding that fighting corruption within public institutions requires courage, discipline, and a sustained commitment to transparency and accountability.