The Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Magaji (SAN), on Tuesday, accused some banks and financial institutions of weakening Nigeria’s anti-corruption framework by allowing inactive and non-compliant companies to continue operating.
Speaking in Abuja during an Anti-Corruption Day event marking CAC’s 35th anniversary, Magaji revealed that 248 fake company registrations had been reported to the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution. He also disclosed that three CAC staff members were handed over to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for alleged misconduct involving tampering with company records.
Magaji stressed that companies failing to disclose their Persons with Significant Control (PSC) are flagged as inactive and should not be allowed to transact. He warned that some banks ignore this sanction, enabling such companies to operate freely. “This is a major weakness in our national compliance chain. We must join hands to stop it,” he said.
He called for a single, harmonised national register for beneficial ownership information, noting that Nigeria’s current fragmented system creates loopholes for corruption and money laundering. Magaji argued that CAC is legally positioned to serve as the central repository for beneficial ownership data and urged stakeholders to support reforms that would strengthen transparency.
Highlighting global trends, he pointed out that beneficial ownership disclosure is now a critical issue in governance worldwide and urged the elevation of PSC rules into an Act of the National Assembly to provide stronger enforcement. He also criticised the practice of declaring companies, rather than individuals, as beneficial owners, saying it undermines accountability.
Magaji concluded by emphasising that the fight against corruption requires sustained collaboration among agencies such as EFCC, ICPC, the Nigeria Financial Intelligence Unit, and the NDLEA, with structured information sharing and joint investigations to achieve measurable outcomes.
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