The Corporate Affairs Commission (CAC) has uncovered 248 fake companies and reported them to the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution.
Registrar-General Hussaini Magaji (SAN) disclosed this on Tuesday in Abuja during an Anti-Corruption Day event marking the Commission’s 35th anniversary.
He also accused some banks of weakening Nigeria’s corporate compliance system by allowing inactive companies to operate freely.
Magaji said some financial institutions continue to recognise companies that the CAC has flagged as inactive.
“At CAC today, no company without full disclosure of its Persons with Significant Control (PSC) qualifies as compliant,” he said.
He explained that the Commission marks companies that fail to disclose their PSC as inactive. Such companies, he added, should not conduct credible transactions.
Despite this, some banks still allow them to open accounts and transact.
“This is a major weakness in our national compliance chain. We must stop it,” Magaji warned.
He stressed that regulators must speak with one voice. According to him, non-compliant companies must not enjoy the privileges of legality.
Internal Cleanup and Staff Sanctions
Magaji said the Commission has strengthened internal controls to demonstrate zero tolerance for corruption.
He handed over three CAC staff members to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over alleged misconduct. The case involves suspicious tampering with company records.
He said the action aimed to protect the integrity of the Commission’s processes.
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Magaji revealed that criminals illegally inserted 248 fake company registrations into the CAC database.
He submitted the list to the EFCC for investigation. The Commission later forwarded an additional 15 suspicious entities for further scrutiny.
According to him, the fake companies lacked traceable corporate identities. They also failed to contribute to national revenue through taxation.
He noted that no legitimate legal challenge has followed the removal of the illegal registrations.
Call for Single Beneficial Ownership Register
Magaji urged stakeholders to support the creation of a single national register for beneficial ownership information.
He criticised the current fragmented system. Some sectors, including the extractive industry and NEPZA, maintain separate registers outside the CAC database.
“This duplication creates loopholes. It weakens our integrity framework and complicates enforcement,” he said.
He insisted that the CAC has the legal mandate and structure to serve as the central repository for beneficial ownership data.
Push for Stronger Legal Backing
Magaji called on lawmakers to elevate the Persons with Significant Control Rules into an Act of the National Assembly.
He said stronger legislation would help authorities tackle sophisticated corporate abuses.
He also warned against the practice of listing companies, instead of individuals, as beneficial owners. Such arrangements, he said, create layers of concealment and undermine accountability.
Magaji described the fight against corruption as a shared national responsibility.
He urged agencies such as the EFCC, ICPC, Nigeria Financial Intelligence Unit (NFIU), and the National Drug Law Enforcement Agency (NDLEA) to deepen cooperation.
“Our collaboration must be sustained and institutionalised. It must deliver measurable outcomes for Nigeria,” he said.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
