For many business owners in Nigeria, incorporating a company with the Corporate Affairs Commission (CAC) feels like the final step in starting a business. Unfortunately, registration is only the beginning.
Every registered company has ongoing legal obligations under the Companies and Allied Matters Act (CAMA) 2020. One of the most important of these is filing Annual Returns and keeping the company’s statutory records up-to-date.
If your company has been operating under the radar without keeping its records updated, here is a breakdown of what the CAC is looking at, how we got here, and what you must do to save your company.
1. What is a “Strike-Off” and What Does the CAC Look At?
When the CAC “strikes off” a company, it removes its name from the official register of active businesses in Nigeria. Practically, the company loses its legal personality: it can no longer lawfully run operations, enter contracts, defend itself in court, or run its corporate bank accounts.
Under Section 692(3) and (4) of the Companies and Allied Matters Act (CAMA) 2020, the CAC is legally empowered to deregister any company it has “reasonable cause to believe” is dormant or inactive.
The CAC Compliance Checklist
Before the CAC puts a company’s name on a strike-off batch list, they review key administrative indicators:
- Failure to File Annual Returns: This is the biggest trigger. Under CAMA, every registered company must file annual returns to show they are active. If a company has neglected this obligation for several consecutive years (specifically up to 10 years for administrative delisting), they are classified as dormant.
- Absence of “Persons with Significant Control” (PSC) Records: In line with global anti-money laundering and transparency standards, companies are now strictly required to declare their beneficial ownership (ultimate owners who control at least 5% of the company). A failure to update PSC records is an immediate red flag.
- Failure to Update Corporate Records: If a company has moved its office address, changed directors, or altered its share structures without filing the corresponding notices with the CAC, it is flagged as non-compliant.
2. When is the “Batch 6” Strike-Off Happening?
The CAC officially commenced the Batch 6 strike-off process on Wednesday, July 15, 2026.
- The Grace Period: The CAC has granted all 100,000 affected companies a strict 90-day grace period from the date of the notice to regularize their accounts.
- The Deadline: This places the final deadline in mid-October 2026.
- The Penalty: If an affected company fails to file its outstanding annual returns, update its PSC info, and submit proof of compliance to struckoffcompanies@cac.gov.ng before the 90 days elapse, it will be struck off the register without any further notice.
3. The History and Pattern: How Did We Get Here?
The CAC’s aggressive compliance push is not a sudden whim; it is a systematically executed cleanup campaign that began in 2023.
The Timeline of Striking-Off Batches
Batch 1 Initial Warning
94,581 were initially listed,after the 90Days grace period, 91,194 were published for delition in December 2023
Outgrew it
Clients started asking for an RC number.
Upgraded to Ltd
Full conversion completed.