The Corporate Affairs Commission (CAC) has struck off over 400,000 “companies” from its register in 2025 alone. Far from a simple administrative exercise, this move represents a massive de-cluttering of the national register, effectively resetting Nigeria’s business data. For context, this number is larger than the entire population of some small countries. It means hundreds of thousands of business bank accounts are now frozen, and many company names are available again.
Hussaini Magaji, the Registrar-General of the CAC, shared this number during the commission’s 35th-anniversary celebrations in Abuja. He was clear about the goal: to “clean up” the system and make sure the companies on the register are actually helping the economy.
This news shouldn’t surprise you if you’ve been following recent stories. For nearly two years, the CAC warned that they would take this action. Since 2024, they published lists of “inactive” companies and told directors that if they didn’t submit their annual returns, some going back ten years, they would be removed.
The reason for this removal is straightforward: Annual Returns. In Nigeria, keeping a company active isn’t just a one-time job. You must inform the government each year that your company is still operating, even if you made no profit. But for many small business owners facing inflation and high fuel prices, filing papers for a dormant company was not a priority.
So, the CAC decided to act.
“In 2025 alone, the commission removed over 400,000 companies,” Magaji said. He presented it as a win for transparency and investor trust. The idea is that a credible business environment cannot exist if many registered companies are inactive.
However, there’s an ironic twist. While the CAC was deleting those 400,000 old companies, they also registered 250,000 new ones for free. Magaji highlighted that the commission, with SMEDAN’s help, offered free registration to encourage new small businesses last year.
So, we are seeing a cycle. Old, struggling businesses are disappearing, while new, hopeful ones are being added. This reflects the broader Nigerian economy—unstable, risky, and always changing.
For the 400,000 business owners caught in this massive delisting, the loss of corporate status is only the beginning of their troubles. Legally, their assets now belong to the state. Practically, this means if they try to use their old company account to receive money now, they could face big problems at the bank.
The message from Abuja is clear: it’s no longer acceptable to keep a company just “in case.” If you’re not active, you’re not a company. And for the new 250,000 businesses entering the register? They need to start saving for their annual returns right away. The deadline is already approaching.
