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Nigeria – Application of Penalties for Failure to File Annual Returns
As of the 1st of January 2024, Nigeria’s Corporate Affairs Commission (CAC) will apply penalties for failure to file Annual Returns.
All Companies operating in Nigeria are required to file Annual Returns every year no later than 42 days after the Annual General Meeting for the year.
Due to wide spread non-compliance with the requirement, the Corporate Affairs Commission has now enforced penalties.
These penalties are prescribed by the Companies Regulations 2021 and will be issued against defaulting companies and their Directors or Officers.
The risk of non-compliance
Failure to file Annual Return will result in:
- A daily default penalty fee of up to N 1000 (One thousand Naira) against the company and its directors or officers;
- Failure to file annual returns for a consecutive period of 10 years is ground for striking the name of a company off the companies’ register.