The Corporate Affairs Commission (CAC) in Nigeria has announced plans to strike off over 100,000 inactive companies from its registry. This bold move has sent ripples through the business sector of West Africa’s largest economy.

The delisting targets entities that have failed to file annual returns and comply with other statutory obligations. According to CAC, the action is aimed at cleaning up the corporate database and ensuring a more transparent and accountable business climate.

Analysts say this could improve investor confidence and align Nigeria’s corporate practices with global norms. However, some fear it may also affect small businesses still recovering from economic downturns.

The commission urges all affected companies to regularize their status or risk removal. The cleanup is expected to continue in phases.