The Corporate Affairs Commission (CAC) has called for the centralisation of Nigeria’s beneficial ownership records, warning that fragmented databases could make it difficult to establish the individuals ultimately controlling companies and benefiting from corporate structures.
The CAC said the existence of separate beneficial ownership systems across government institutions could create information gaps that criminals and politically exposed individuals could exploit to conceal ownership and facilitate corruption, money laundering, terrorism financing and illicit financial flows.
Registrar-General and Chief Executive Officer of the commission, Hussaini Magaji, made the call during a training on the beneficial ownership register organised for journalists and civil society organisations.
Magaji disclosed that Nigeria currently operates three separate beneficial ownership transparency registers under different institutional frameworks.
They include the beneficial ownership register maintained by the CAC, information on entities operating within free trade zones held under the Nigeria Export Processing Zones Authority (NEPZA), and beneficial ownership information on companies operating in the extractive sector maintained under the Nigeria Extractive Industries Transparency Initiative (NEITI).
The CAC boss said although the three systems were established under different statutory arrangements, they largely seek the same information, the identity of the individuals who own, control or ultimately benefit from companies and other corporate entities.
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He argued that maintaining the information in separate institutional silos could prevent regulators and investigators from obtaining a complete picture of corporate ownership, particularly when companies operate across multiple sectors.
“My position is clear: Nigeria should work towards harmonising and centralising beneficial ownership information within a coordinated national framework, with the CAC corporate registry serving as the central corporate data backbone,” Magaji said.
“If the objective is transparency and accountability, then information should not exist in silos. We must make it possible to see the complete picture.”
He clarified that the proposal would not undermine the statutory responsibilities of NEPZA or NEITI, but would allow information held by the different institutions to be connected and accessed through interoperable systems.
Beneficial ownership information is designed to reveal the natural persons who ultimately own, control or significantly influence companies, even where ownership is concealed behind layers of corporate structures.
Magaji said the system is intended to “lift the veil of complexity” surrounding corporate structures and make it easier to identify the real individuals behind businesses.
He described beneficial ownership disclosure as more than a regulatory requirement, saying it was an important tool in the fight against illicit financial activities and corporate abuse.
The CAC also urged journalists and CSOs to use the register to investigate corporate ownership and relationships that may otherwise remain hidden.
Magaji said journalists investigating companies, transactions, procurement arrangements or business relationships should establish who owns the company, who controls it, who benefits from it and whether there are undisclosed relationships linking the parties involved.
He disclosed that agencies including the Independent Corrupt Practices and other related offences Commission (ICPC), Economic and Financial Crimes Commission (EFCC) and the National Drug Law Enforcement Agency (NDLEA) have used beneficial ownership information in investigations and enforcement activities.
However, Magaji cautioned journalists against treating the appearance of an individual’s name in a corporate record as proof of criminal conduct.
He urged journalists to independently verify information obtained from the register and ensure that reports are accurate and fair.
The CAC boss also said access to beneficial ownership data is free, encouraging journalists and civil society organisations to familiarise themselves with the platform.
He said a more coordinated beneficial ownership system would strengthen Nigeria’s corporate governance and anti-corruption framework while making it more difficult for individuals to hide illicit activities behind complex corporate structures.
The commission said the reform would also help create a business environment in which legitimate companies can operate while strengthening government’s ability to detect and investigate the misuse of corporate entities.
