CAC issues strong warning to companies

CAC issues strong warning to companies

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CAC issues strong warning to companies

Corporate Affairs Commission

CAC issues strong warning to companies . The Corporate Affairs Commission has warned Nigerians to refrain from establishing or registering firms that they do not intend to operate immediately.

Mr Justine Nidia, CAC’s Director of Compliance, made the call in an interview with the News Agency of Nigeria on Sunday.

Nidia stated that the commission does not encourage people to form corporations if they do not have a business plan that can be translated into action.

“It is not advisable to register a company and keep it in your briefcase because that is not helpful to the economy,” he added.

According to the director, such firms are referred to as shelf companies and are discouraged from remaining on the CAC company register; hence, they are delisted.

“The idea behind delisting companies is to avoid being seen as encouraging shelf companies.”

“By shelf companies, we mean registered companies that are no longer active or are inactive.”

“As a result, they are not required to be on the company register.” “The proper thing to do is to remove or strike them off the register,” Nidia explained.

He stated that the committee has produced an initial list of approximately 100,000 companies that will be delisted.

“We gave those who believe they will still be in business 90 days, which has now passed, to file annual returns in order to avoid delisting.”

“Approximately 5,000 companies responded after the initial publication to file their annual returns, with the remaining approximately 95,000 to be delisted.”

“We recently issued another publication requesting that companies that have filed their returns and whose names are still on the list get back to us.”

“As a result, we do not delist a company that has already filed its return.” So we’ve given an extra month, after which we’ll publish the final list,” Nidia explained.

The CAC director praised the current government, led by President Bola Tinubu, for its efforts to create an environment conducive to corporate growth in the country.


Nidia stated that the commission, in accordance with Tinubu’s mandate, devised a four-point agenda to guide CAC’s operations.

“The renewed hope agenda’s strategic direction informed the need to develop my four-point agenda aimed at repositioning the commission for greater productivity.”

“The four-point agenda is diversification of revenue base, enforcement of compliance, promotion of industrial harmony, and improvement of human capital,” he said.

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