NFIU to de-register inactive companies

The Nigeria Financial Intelligent Unit ( NFIU), has announced a plan to de-register inactive companies by September.
Modibbo Tukur, the director of NFIU, said that the unit would publish the criteria for companies to keep their registration status.
He said this would rid the system of inactive companies that could potentially be used for fraud.
He said for companies to exist, they should have physical addresses.
He told Mary Uduka, the acting director- general of Securities and Exchange Commission (SEC), ‘’ if anyone establishes a company, it has to be a company indeed and we have to firm on this.
“This has become more important now given rollout of the Economic Community of West African States (ECOWAS) single currency because, with that, we know that the capital and investments will move across the borders and it is a single currency
“So, we have to step up regulation to avoid fraudulent transactions. We will begin by September and some companies will have to be deregistered if they do not meet the criteria.
“We will publish the parameters and also give them enough time to regularize after which those that do not comply before the deadline will be shut down.
“If you have an empty company hanging in the system, it is a potential danger and we should not allow it to thrive.”
A memorandum of understanding was signed by NFIU and SEC to tackle fraud in the capital market.