CAC Pushes for Unified Ownership Register to Curb Illicit Funds in Nigeria

In a decisive move to strengthen Nigeria’s anti‑money‑laundering framework, the Corporate Affairs Commission (CAC) has announced plans for a unified ownership register. The register, slated for rollout later in 2026, will consolidate beneficial‑owner information across all registered entities, giving regulators a single source of truth to track illicit funds.

Why a Unified Ownership Register Matters

Money‑laundering schemes often thrive on opaque corporate structures that hide the true owners of assets. By collating ownership data into one searchable platform, the CAC aims to close loopholes that criminals exploit to move money across borders. The initiative aligns with global standards set by the Financial Action Task Force (FATF) and mirrors similar reforms in Ghana, South Africa and Kenya, where unified registers have already shown measurable impact.

Key Features of the Proposed Register

The register will be digital‑first, accessible to authorised agencies such as the Economic and Financial Crimes Commission (EFCC), the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC). It will capture:

• Beneficial owners holding more than 25% of share capital or voting rights.
• Directors and senior management details.
• Changes in ownership within a 30‑day reporting window.
• Cross‑border ownership links for multinational subsidiaries.

Data will be verified through a combination of self‑declaration, third‑party verification and periodic audits, ensuring accuracy while respecting legitimate privacy concerns.

Regulatory Landscape and International Alignment

Since Nigeria signed the 2022 FATF Action Plan, the government has been under pressure to tighten its anti‑terror financing and money‑laundering regimes. The unified ownership register is a concrete step toward meeting those commitments. It also dovetails with the African Union’s 2025‑2027 Financial Integrity Strategy, which encourages member states to adopt common beneficial‑owner registries.

Other African economies have already taken the plunge. Ghana’s Beneficial Ownership Register, launched in 2024, has led to a 15% increase in successful prosecutions of illicit finance cases, according to the Ghana Revenue Authority. South Africa’s Companies and Intellectual Property Commission (CIPC) reported a similar boost after its 2025 rollout.

Implementation Timeline and Stakeholder Engagement

The CAC has outlined a phased rollout:

1. Phase 1 (Q4 2026): Pilot testing with a sample of 5,000 companies across Lagos, Abuja and Port Harcourt.
2. Phase 2 (Q1 2027): Full‑scale integration for all newly incorporated entities.
3. Phase 3 (Q3 2027): Migration of existing companies into the register, with a grace period for compliance.

During Phase 1, the CAC will hold stakeholder workshops involving chambers of commerce, industry bodies, and legal firms to fine‑tune data collection processes. Feedback loops are built in to address concerns about data security and the administrative burden on small‑and‑medium enterprises (SMEs).

Impact on Nigerian Businesses and the Economy

For legitimate businesses, the register promises greater confidence from investors, banks and international partners. Transparent ownership structures reduce the risk of being inadvertently linked to illicit activities, which can otherwise result in frozen accounts or costly investigations.

SMEs, which form the backbone of Nigeria’s GDP, will benefit from clearer credit assessments. Banks can now verify ultimate owners quickly, speeding up loan approvals and lowering compliance costs. Moreover, the register is expected to attract foreign direct investment (FDI) by signalling a robust regulatory environment.

Challenges and Mitigation Strategies

Implementing a nationwide database is not without hurdles. Data accuracy, cyber‑security threats and the administrative load on businesses are top concerns. The CAC plans to mitigate these by:

• Deploying end‑to‑end encryption and regular penetration testing.
• Providing an online self‑service portal with step‑by‑step guidance for filing.
• Offering a tiered fee structure, with exemptions for micro‑enterprises.
• Partnering with fintech firms to automate verification using digital identity solutions.

These measures aim to balance regulatory rigor with ease of compliance, ensuring that the register does not become a barrier for legitimate entrepreneurs.

Regional Implications and Cross‑Border Cooperation

Money laundering is a trans‑national challenge. A unified ownership register in Nigeria will facilitate information sharing with neighbouring jurisdictions through the West African Economic and Monetary Union (UEMOA) and the East African Community (EAC). Joint databases could soon allow real‑time alerts when suspicious ownership patterns emerge across borders.

Such cooperation could also streamline the work of the African Financial Intelligence Centre (AFIC), which coordinates AML efforts across the continent. By feeding consistent, high‑quality data into AFIC’s analytics platform, Nigeria can contribute to a continent‑wide early‑warning system.

What Nigerians Should Expect Next

In the coming months, expect public notices from the CAC outlining filing deadlines, required documentation and support channels. Companies should begin reviewing their shareholder registers and preparing digital copies of identification documents for beneficial owners.

Legal practitioners are advised to update client advisory notes to reflect the new obligations. Meanwhile, banks and financial institutions will likely tighten their own due‑diligence procedures in anticipation of richer data from the register.

FAQ

Q: Who is required to register their beneficial owners?
A: All companies, partnerships and incorporated entities operating in Nigeria, regardless of size, must disclose any individual who ultimately owns or controls at least 25% of the entity.

Q: How will the data be protected?
A: The CAC will employ encryption, role‑based access controls and regular security audits. Only authorised agencies will have permission to view sensitive details.

Q: What are the penalties for non‑compliance?
A: Failure to submit accurate ownership information within the stipulated timeframe can result in fines up to ₦5 million, suspension of corporate registration, and possible criminal prosecution for willful concealment.

Conclusion

The CAC’s push for a unified ownership register marks a pivotal step in Nigeria’s fight against illicit financial flows. By aligning with global best practices and regional initiatives, the register promises to enhance transparency, protect legitimate businesses and bolster investor confidence. While challenges remain, the phased approach, stakeholder engagement and robust security framework position Nigeria to set a benchmark for financial integrity across Africa.

For the latest updates, visit the original Punch article.

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