By Esther Onyegbula

The Registrar-General of the Corporate Affairs Commission (CAC), Hussaini Ishaq Magaji, SAN, has urged government agencies to strengthen the enforcement of Nigeria’s Beneficial Ownership Register (BOR) to combat financial crimes and promote corporate transparency.

Speaking at a two day sensitization and capacity building workshop organized by the Civil Society Legislative Advocacy Centre (CISLAC) in collaboration with Oxfam and its partners, in Lagos recently, Magaji emphasised the need for greater private-sector compliance, sustained civil society advocacy, and heightened media scrutiny to ensure the register’s effectiveness.

Launched in 2023, the Beneficial Ownership Register (BOR) is a key instrument in Nigeria’s fight against corruption, illicit financial flows, tax evasion, and money laundering. The initiative publicly discloses the real owners of companies and Limited Liability Partnerships (LLPs), reducing the risks of anonymous corporate ownership.

Magaji described the register as a powerful tool for preventing corporate entities from being exploited for fraudulent activities. He highlighted three critical benefits of beneficial ownership transparency:

By revealing the individuals controlling companies, the register helps prevent corporate misuse for money laundering and illicit financial dealings.
Accessible ownership information allows civil society organizations, journalists, and citizens to monitor businesses and public officials.
A transparent environment fosters business integrity, promotes fair competition, and levels the playing field for legitimate enterprises.
Magaji stressed that achieving these objectives requires active participation from multiple stakeholders. Institutions such as NEITI, EFCC, BPP, NFIU, and FIRS must enforce compliance. Additionally, companies must disclose accurate ownership information, while advocacy groups and investigative journalists play a critical role in ensuring accountability.

In his opening speech, the Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), Mr. Auwal Ibrahim Musa, stated:

“At this critical juncture in Nigeria’s fight against corruption, illicit financial flows, tax evasion, and money laundering, the launch of Nigeria’s Open Central Register of Beneficial Ownership—also known as the Persons with Significant Control (PSC) Register—on May 25, 2023, has demonstrated our country’s global leadership in financial transparency. This milestone aligns with Nigeria’s commitment made during the 2016 Anti-Corruption Summit in London and places us at the forefront of corporate accountability efforts in Africa.”

Musa further explained that the PSC Register is not just a database but a powerful tool for reform. By mandating the public disclosure of individuals with significant control over companies and LLPs, it dismantles layers of secrecy that enable illicit financial flows and corporate malpractice.

More importantly, Nigeria is the first African country to adopt the Beneficial Ownership Data Standard (BODS), ensuring that ownership data is structured, globally interoperable, and useful for enforcement agencies, regulatory bodies, and civil society organizations.

“We are here to sensitize key stakeholders, regulators, business member organizations (BMOs), civil society organizations (CSOs), and the media,” he added.

Despite the register’s potential, financial crime expert Lawrence Dube identified a lack of political will, inconsistent regulations, and limited data access as major obstacles to its implementation.

“Many governments resist transparency efforts, allowing powerful individuals to hide behind shell companies and offshore accounts. Without full disclosure, we cannot effectively track the real beneficiaries of suspicious financial transactions,” Dube warned.

Experts also flagged data fragmentation across agencies as a major weakness.

“If law enforcement agencies do not share information, beneficial ownership data becomes unreliable. Without verification, we are relying on self-reported data, which criminals can easily manipulate,” Dube added.

To enhance the effectiveness of the Beneficial Ownership Register, experts at the forum proposed the following:

Mandatory Data Cross-Checking: Regulatory bodies must merge tax records, corporate filings, and financial transactions to verify ownership disclosures.
International Data Exchange: Nigeria should exchange ownership data with other nations to prevent criminals from hiding assets in offshore jurisdictions.
A Unified System: This would streamline investigations and enforcement efforts.
Dube also urged policymakers to impose strict penalties on companies that fail to disclose their real owners.

“We need to shift from a reactive approach to a preventive one. Real-time verification and cross-border data sharing can disrupt financial crimes before they escalate,” he said.

While Nigeria has committed to strengthening its beneficial ownership laws, enforcement faces resistance from powerful business and political interests. Critics argue that weak implementation allows politically exposed persons (PEPs) to exploit the system.

Transparency advocates insist that civil society must increase pressure on lawmakers to adopt stricter ownership disclosure laws.

“Without public accountability, beneficial ownership registers will remain ineffective. Citizens must demand full transparency from corporations and government officials,” said a representative from Transparency International Nigeria.

As Nigeria grapples with the economic consequences of corruption, experts warn that delays in beneficial ownership transparency reforms will continue to undermine national development. Without decisive action, anonymous companies will remain a tool for financial crime, jeopardizing efforts to create a more accountable and trustworthy business environment.