In a significant move aimed at enhancing the reliability of Nigeria's corporate registry, the Corporate Affairs Commission (CAC) has officially deregistered more than 400,000 companies identified as inactive. Registrar-General Hussaini Magaji revealed this development during a fitness walk event in Abuja, aligning with the CAC's 35th anniversary celebrations. The initiative is part of a broader reform strategy designed to improve transparency in the corporate sector and bolster investor confidence in the Nigerian economy. Magaji stated that the deregistration primarily concerns companies that have failed to meet their statutory obligations, particularly the filing of annual returns.

The CAC's actions are critical in addressing the risks posed by dormant companies that contribute little to the economic framework and may create a facade of a thriving business environment. By removing these inactive entries from the corporate registry, the CAC aims to create a more reliable and trustworthy database for investors and stakeholders. Magaji emphasized the necessity of cleaning the registry to mitigate threats to economic operations, which have been exacerbated by the presence of these inactive companies.

This reform not only promotes corporate accountability but also seeks to restore public trust in the corporate landscape of Nigeria. As the country continues to grapple with economic challenges, the removal of non-compliant companies is a strategic step towards fostering a healthier business climate that can attract both local and foreign investors. The CAC's reform efforts signal a commitment to maintaining integrity within the corporate sector and ensuring that businesses operating in Nigeria adhere to the necessary legal frameworks.