CAC has accused banks of aiding non-compliant firms and uncovered 248 fictitious companies in anti-corruption crackdown.
NewsOnline Nigeria reports that the Corporate Affairs Commission (CAC) has accused some banks and financial institutions of weakening Nigeria’s anti-corruption and regulatory compliance framework by allowing inactive and non-compliant companies to continue operating and conducting financial transactions.
The Registrar-General of the CAC, Hussaini Magaji, made the allegation on Tuesday in Abuja during an Anti-Corruption Day presentation and panel discussion held to mark the Commission’s 35th anniversary.
Magaji disclosed that the Commission recently uncovered 248 fictitious company registrations that were illegally inserted into its database. The cases have been forwarded to the Economic and Financial Crimes Commission (EFCC) for investigation and possible prosecution.
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He also revealed that three CAC staff members were handed over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over alleged professional misconduct involving unauthorised tampering with company records.
Addressing representatives of anti-corruption and law enforcement agencies, Magaji warned that Nigeria’s corporate regulatory system would remain vulnerable if compliance rules were not uniformly enforced across institutions.
“At CAC today, no company without full disclosure of its Persons with Significant Control (PSC) 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 stated.
Despite these safeguards, Magaji expressed concern that some financial institutions continue to open accounts and transact with companies flagged as inactive.
“While CAC may flag such companies as inactive, some financial institutions, particularly banks, still allow them to operate and transact freely. This is a major weakness in our national compliance chain. We must work together to close this gap,” he said.
He stressed that non-compliant companies should not enjoy the privileges of legality, adding that effective enforcement across regulatory bodies is essential to strengthening Nigeria’s anti-corruption drive.
On internal reforms, Magaji said the Commission has intensified transparency measures, including surrendering three staff members to the ICPC to protect the integrity of its processes.
In addition to the 248 fictitious firms, he revealed that 15 other suspicious entities had been identified and referred for further investigation. According to him, none of the affected entities has filed a legitimate legal challenge against the Commission’s actions.
Magaji also renewed his call for the establishment of a unified national register for beneficial ownership information, warning that Nigeria’s fragmented system creates loopholes that can be exploited for money laundering and other illicit financial activities.
At the event, the Chairman of the ICPC, Musa Adamu Aliyu, represented by ICPC spokesperson Demola Bakare, emphasised the critical role of transparency in national development. He described the CAC as a central institution in Nigeria’s economic and entrepreneurial ecosystem, noting that corporate transparency directly strengthens overall national accountability.
Aliyu highlighted key reforms such as the Companies and Allied Matters Act (CAMA) 2020, beneficial ownership regulations, open procurement systems, asset declaration frameworks, and the Freedom of Information Act as pillars of Nigeria’s transparency architecture.
While acknowledging progress, he said enforcement gaps, inter-agency collaboration challenges, and resistance from vested interests remain significant hurdles.
“Transparent economies attract investment, strengthen SMEs, create sustainable jobs, and mobilise domestic revenue more effectively. For Nigeria, transparency reduces dependence on borrowing and creates fiscal space for infrastructure, education, and healthcare,” he said.
