The Registrar General of the Corporate Affairs Commission CAC Hussaini Magaji SAN has accused some banks and financial institutions of undermining Nigeria’s anti corruption and compliance framework by allowing inactive and non compliant companies to continue operating and transacting freely.
Magaji made the accusation on Tuesday in Abuja during an Anti Corruption Day presentation and panel discussion organised as part of activities marking the commission’s 35th anniversary. He spoke on the theme Transparency for Development The Nigeria Experience.
Addressing representatives of key anti corruption and law enforcement agencies the CAC boss said companies that fail to disclose their Persons with Significant Control PSC are flagged as inactive and should not be allowed to carry out legitimate business activities. He stressed that such companies are not recognised as compliant by the commission.
Magaji expressed concern that despite being officially classified as inactive some financial institutions especially banks continue to open accounts and permit transactions for these companies. He described the practice as a major weakness in Nigeria’s national compliance chain and called for uniform enforcement across all institutions.
According to him Nigeria’s regulatory ecosystem must speak with one voice insisting that non compliant companies should not enjoy the privileges of legality. He noted that collective enforcement is critical to strengthening transparency and accountability.
The CAC Registrar General also disclosed that the commission had reported 248 fake company registrations to the Economic and Financial Crimes Commission EFCC for investigation and prosecution. He said the entities were illegally inserted into the CAC system and operated without traceable corporate identities while contributing nothing to national revenue.
Magaji further revealed that three CAC staff members were handed over to the Independent Corrupt Practices and Other Related Offences Commission ICPC over alleged internal misconduct involving unauthorised tampering with company records.
He renewed calls for the creation of a single harmonised national register for beneficial ownership information warning that Nigeria’s fragmented system creates loopholes for corruption money laundering and illicit financial flows.
Magaji urged stronger collaboration among anti corruption agencies stressing that the fight against corruption is a collective national responsibility that requires sustained coordination and trust.
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