The Corporate Affairs Commission (CAC) has cautioned Nigerians against registering businesses without immediate plans to translate them into action. Mr. Justine Nidia, the Director of Compliance at CAC, emphasized the importance of having a concrete business idea before proceeding with the registration process in an interview with the News Agency of Nigeria on Sunday.
Nidia discouraged the practice of registering companies and keeping them dormant, referring to such entities as “shelf companies.” He stated that these inactive companies are not beneficial to the economy and are eventually delisted from the register of companies.
The director explained that delisting aims to discourage the existence of shelf companies, which are registered but remain redundant. He noted that the commission had initially identified around 100,000 companies for delisting, giving a 90-day period for those wishing to remain in business to file annual returns.
After the initial publication, approximately 5,000 companies responded by filing their annual returns, leaving around 95,000 companies slated for delisting. Nidia added that the commission issued another publication, providing an additional one-month period for companies that have filed returns but are still on the list to submit evidence.
Commending the government’s efforts to create a conducive business environment, Nidia highlighted the CAC’s four-point agenda aligned with President Bola Tinubu’s mandate. The agenda focuses on diversification of the revenue base, enforcement of compliance, promotion of industrial harmony, and improvement of human capital to enhance the commission’s productivity.
