The Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Magaji (SAN), has accused some banks and financial institutions of weakening Nigeria’s anti-corruption and compliance framework by allowing inactive and non-compliant companies to operate freely.
Magaji revealed that the CAC reported 248 fake company registrations to the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution. Additionally, three CAC staff members were handed over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for alleged internal misconduct.
The disclosures were made on Tuesday in Abuja during an Anti-Corruption Day presentation and panel discussion, held to mark the CAC’s 35th anniversary. Speaking on “Transparency for Development: The Nigeria Experience,” Magaji warned that the corporate regulatory system remains vulnerable unless compliance is enforced uniformly.
“Companies that fail to disclose their Persons with Significant Control (PSC) are flagged as inactive and are unfit for credible transactions. Yet, some financial institutions continue to allow these companies to operate, open accounts, and transact freely. This is a major weakness in our national compliance chain,” he said.
Magaji stressed that non-compliant companies should not enjoy the privileges of legality, adding that collective enforcement is essential for a credible corporate ecosystem.
To strengthen internal integrity, he said, “We surrendered three staff members to the ICPC for alleged misconduct involving unauthorised tampering with company records. This eliminates compromise and reinforces zero tolerance for corruption.”
He also highlighted the 248 fake companies discovered within the CAC system, which operated without traceable corporate identities and did not contribute to national revenue. An additional 15 entities are under investigation. “No legitimate legal challenge has been brought against CAC regarding the removal of these illegal registrations,” he noted.
Magaji called for a single, harmonised national register for beneficial ownership, warning that Nigeria’s fragmented system, with separate registers in sectors like extractives and NEPZA, creates loopholes for corruption, money laundering, and illicit financial flows.
“A unified register would enhance verification, transparency, and compliance with global anti-money laundering and counter-terrorism standards. CAC is legally positioned to serve as the central repository for beneficial ownership data,” he said.
He also urged the elevation of the Persons with Significant Control Rules into an Act of the National Assembly to provide a stronger legal framework. Magaji warned against companies declaring other companies as beneficial owners, a practice that undermines accountability.
Concluding, he called for sustained collaboration among Nigeria’s anti-corruption and law enforcement agencies, including the EFCC, ICPC, Nigeria Financial Intelligence Unit, and NDLEA, emphasizing that the fight against corruption is a shared national responsibility.
The panel session was part of the commission’s 35th-year anniversary celebrations.