CAC Warns Banks: Halt Inactive Companies' Transactions

The Corporate Affairs Commission (CAC) has strongly advised commercial banks to discontinue facilitating financial transactions for inactive and non-compliant companies. This significant directive, announced at the Commission's 35th-anniversary celebration in Abuja, follows the submission of 263 illegally registered entities to the Economic and Financial Crimes Commission (EFCC) for thorough investigation and potential prosecution.

Crackdown on Illegally Registered Entities

Hussaini Ishaq Magaji, SAN, the Registrar-General and Chief Executive Officer of the CAC, revealed these measures during the Commission’s 35th-anniversary event held in Abuja, Nigeria. He stated that 248 of the identified illegal entities were fraudulently embedded within the CAC system, with an additional 15 companies later pinpointed and referred to the EFCC for deeper inquiry.

According to Magaji, these companies have been operating within the Nigerian framework without legitimate corporate identities and, critically, without contributing to national revenue through taxation. This situation represents a substantial loss for the national economy and raises serious concerns about corporate governance.

Boosting Corporate Integrity and Revenue

“In the year under review, we submitted to the EFCC a list of 248 fake company registrations that were illegally inserted into our system through unlawful means,” Magaji confirmed. He further elaborated, “These were purported entities operating within Nigeria without traceable corporate identity and without contributing to national revenue. We also identified and submitted an additional 15 such entities for further investigation.”

These actions, Magaji emphasised, form a crucial part of the Commission's resolute efforts to purify its internal systems. They also underscore a zero-tolerance stance against corruption, even in the face of legal obstacles and personal attacks on staff.

Internal Accountability and Anti-Corruption Drive

Demonstrating commitment to accountability, Magaji also disclosed that three CAC staff members have been transferred to the Independent Corrupt Practices and Other Related Offences Commission (ICPC). These individuals are alleged to have been involved in suspicious and unauthorised dealings concerning company records.

“These actions were taken to eliminate the chances of compromise and to strengthen integrity within our processes,” Magaji asserted, reiterating that the battle against corruption demands both personal sacrifice and robust institutional courage.