CAC Reports 248 Fake Company Registrations to EFCC, Accuses Banks of Aiding Corruption
- The CAC accused some banks of allowing inactive and non-compliant companies to operate and transact
- It reported 248 fake company registrations to the EFCC and handed over three staff members to the ICPC
- Companies that fail to disclose their Persons with Significant Control were flagged as inactive by the CAC
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Magaji (SAN), has accused some banks and financial institutions of weakening Nigeria’s anti-corruption framework by allowing inactive and non-compliant companies to continue operating.
Source: Twitter
Magaji made the remarks on Tuesday in Abuja during an Anti-Corruption Day presentation and panel discussion held as part of activities marking the commission’s 35th anniversary.
CAC flags banks over inactive companies
According to the CAC boss, companies that fail to disclose their Persons with Significant Control (PSC) are flagged as inactive and are not recognised as compliant by the commission.
“At CAC today, no company without full disclosure of its Persons with Significant Control is recognised as compliant. Companies that fail to disclose their PSC are flagged as inactive, and such status renders them unfit for credible transactions,” he said.
Magaji, however, expressed concern that some financial institutions continue to allow such flagged companies to open bank accounts and carry out transactions.
He noted that even when the CAC may flag such companies as inactive, some banks continue to allow these inactive companies to operate and transact freely.
He stressed that Nigeria’s regulatory institutions must enforce compliance uniformly, warning that non-compliant companies should not enjoy the privileges of legality.
CAC reports fake registrations, staff to anti-graft agencies
Magaji also disclosed that the commission handed over three staff members to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over alleged misconduct involving unauthorised tampering with company records.
He said the action was taken to strengthen internal integrity and demonstrate zero tolerance for corruption.
In addition, the CAC reported 248 fake company registrations discovered in its system to the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution. An additional 15 entities were also submitted for further investigation.
According to him, the affected entities lacked traceable corporate identities and did not contribute to government revenue through taxation.
Call for single national beneficial ownership register
The Registrar-General renewed his call for the establishment of a single, harmonised national register for beneficial ownership information, warning that Nigeria’s current fragmented system creates regulatory loopholes.
He explained that some sectors, including the Extractive Industry and the Nigeria Export Processing Zones Authority (NEPZA), maintain separate beneficial ownership registers outside the central CAC database.
“This situation creates duplication, inconsistencies, and regulatory loopholes. It weakens our national integrity framework and complicates law enforcement efforts,” he said.
Magaji maintained that the CAC is legally positioned to serve as the central repository for beneficial ownership data in Nigeria. He urged stakeholders to support reforms aimed at consolidating the registers.
According to him, a unified system would enhance verification processes, improve transparency, and strengthen Nigeria’s compliance with global anti-money laundering and counter-terrorism financing standards.
Source: Facebook
Push for stronger legal backing
Magaji further called for the Persons with Significant Control Rules to be elevated into an Act of the National Assembly to provide a stronger legal foundation for enforcement.
He also raised concerns about some large corporations declaring other companies, rather than individuals, as beneficial owners, describing the practice as a loophole that undermines accountability.
The CAC boss concluded by urging sustained collaboration among anti-corruption and law enforcement agencies, including the EFCC, ICPC, Nigeria Financial Intelligence Unit, and the National Drug Law Enforcement Agency.
CAC removes 400,000+ non-compliant firms
Legit.ng earlier reported that the CAC delisted over 400,000 inactive and non-compliant companies from its register to protect the integrity of Nigeria’s corporate records.
The commission’s shift to a fully digital registration system allows entrepreneurs to register businesses remotely, improving the ease of doing business.
It recently partnered with SMEDAN to provide free registration for 250,000 small businesses and launched a beneficial ownership register.
Source: Legit.ng
