CAC Warns Banks Over Inactive Firms, Hands 263 Companies To EFCC

The Corporate Affairs Commission (CAC) has warned commercial banks against allowing inactive and non-compliant companies to conduct financial transactions.

The commission revealed that it recently forwarded 263 illegally registered firms to the Economic and Financial Crimes Commission (EFCC) for investigation and possible prosecution.

Naija News reports that the Registrar-General and Chief Executive Officer of the CAC, Hussaini Ishaq Magaji (SAN), disclosed this during an event marking the commission’s 35th anniversary celebration in Abuja.

Magaji said 248 of the companies were fraudulently inserted into the CAC system, while an additional 15 entities were later discovered and submitted to the EFCC for further investigation.

“In the year under review, we submitted to the EFCC a list of 248 fake company registrations that were illegally inserted into our system through unlawful means,” he said.

“These were purported entities operating within Nigeria without traceable corporate identity and without contributing to national revenue.

“We also identified and submitted an additional 15 such entities for further investigation.”

According to him, the affected firms had been operating within Nigeria’s financial system without proper documentation or tax obligations.

The CAC boss cautioned financial institutions against enabling such entities to transact, stressing that stricter compliance measures were necessary to protect the integrity of the corporate registry and the financial system.

He noted that the move formed part of the commission’s broader effort to sanitise its processes and curb corporate fraud.

Magaji also disclosed that three staff members of the commission had been handed over to the Independent Corrupt Practices and Other Related Offences Commission for alleged involvement in suspicious and unauthorised dealings relating to company records.

“These actions were taken to eliminate the chances of compromise and to strengthen integrity within our processes,” he stated.

He added that the commission’s stance underscored its zero tolerance for corruption, despite legal pressures and personal attacks encountered in the course of reforms.

The Registrar-General stressed that tackling corruption within public institutions requires courage, discipline and sustained commitment to transparency and accountability.