The Corporate Affairs Commission (CAC) has transferred 248 cases of fake company registrations to the Economic and Financial Crimes Commission (EFCC) for investigation, intensifying efforts to curb corporate fraud and misuse of registered entities in Nigeria.
The Commission also raised concerns about weaknesses in the country’s corporate regulatory system, calling for urgent legislative reforms to close anti-corruption loopholes and strengthen enforcement mechanisms.
Speaking during Anti-Corruption Day at CAC’s 35th anniversary celebration, Registrar-General and Chief Executive Officer, Hussaini Magaji, said the fraudulent registrations—illegally inserted into the Commission’s database—pose serious risks to national revenue, regulatory compliance, and investor confidence.
He explained that the affected entities operated without verifiable corporate identities and did not contribute to government revenue through taxation. According to him, the cases were uncovered during an internal review, which prompted their referral to the EFCC for investigation and possible prosecution. An additional 15 suspicious entities have also been identified for further action.
In a rare disclosure of internal accountability measures, Magaji revealed that three CAC staff members have been referred to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over alleged misconduct, including unauthorized alterations of company records.
The registrar-general emphasized that the Commission maintains a zero-tolerance stance on corruption and the abuse of corporate data.
He noted that while Nigeria has made progress in establishing beneficial ownership transparency systems, structural weaknesses persist. In particular, he pointed to the existence of separate beneficial ownership registers maintained by certain sectors outside CAC’s central database, describing the arrangement as fragmented and vulnerable to regulatory gaps.
Magaji advocated the establishment of a unified national beneficial ownership register under CAC’s statutory authority to enhance coordination, eliminate duplication, and support intelligence-driven investigations.
He also expressed concern that companies flagged as inactive or non-compliant—particularly those that fail to disclose Persons with Significant Control (PSC)—continue to conduct transactions through financial institutions. He urged regulators and financial institutions to ensure that non-compliant entities do not retain the privileges of legitimate operations.
According to him, allowing such companies to transact undermines the rule of law and weakens regulatory enforcement.
The registrar-general acknowledged resistance to some of CAC’s enforcement actions, including criticisms directed at the Commission’s leadership. However, he maintained that all measures taken were lawful and necessary, noting that no valid legal challenge has been brought against the removal and reporting of the fake registrations.
Highlighting CAC’s central role in combating corporate fraud, Magaji said the Commission’s corporate records are critical tools for tracing ownership structures, dismantling illicit financial networks, and supporting law enforcement agencies.
He further warned against the practice of listing corporate entities rather than individuals as beneficial owners, describing it as a tactic that creates additional layers of concealment and undermines accountability.
Magaji stressed that tackling corporate fraud requires sustained collaboration among anti-corruption bodies, including the EFCC, ICPC, and the Nigerian Financial Intelligence Unit (NFIU).
He concluded by urging stakeholders to institutionalize structured cooperation with CAC, emphasizing that the fight against corporate corruption is a collective national responsibility that demands coordinated and long-term commitment.