CAC Late Filing Penalties Schedule: What Inactive Companies Owe

By Alexander Odidi, Esq. A


Many business owners in Nigeria believe a quiet or dormant company is free to operate and owes nothing to the government. Under the Companies and Allied Matters Act (CAMA), dormancy does not exempt a business from annual filing requirements.

Failing to file your annual returns on time automatically triggers late filing penalties. These penalties accumulate for every defaulted year, accruing on the registered business itself and, for Limited Liability Companies, on the directors personally.

This article provided a clear, transparent breakdown of official CAC base filing fees and statutory late penalties. It also explains how to calculate what your inactive company actually owes.

Official CAC Annual Returns Fee vs. Penalty Schedule

CAC charges a fixed base fee for timely filings. Once the filing deadline passes, a flat late penalty is added for each defaulting year.


Entity Type

Statutory Filing Deadline

Base Filing Fee (Yearly)

Late Penalty Fee (Yearly)

Total Debt Owed to CAC (Yearly)

Business Name

June 30th of the following year

₦3,000

₦2,500

₦5,500

Small Private Ltd (Capital < ₦10M)

42 days post-AGM

₦5,000

₦5,000

₦10,000

Medium / Large Ltd (Capital > ₦10M)

42 days post-AGM

₦20,000

₦20,000

₦40,000

Incorporated Trustees (NGO/Church)

June 30th of the following year

₦5,000

₦5,000

₦10,000

Note: Figures above represent official statutory fees paid via the payment platform. They exclude bank processing charges, Remita service fees, or professional accredited agent service fees.

How CAC Penalties Compound Over Time

Penalties are cumulative. If you registered a Small Limited Liability Company in 2021 and have never filed an annual return, your outstanding debt compounds across every single missed year.

Example Calculation of a fictional company: 

Small Ltd Company Defaulting for 4 Years (2022 - 2025)

  • 2022 Return: ₦5,000 Base Fee + ₦5,000 Penalty = ₦10,000

  • 2023 Return: ₦5,000 Base Fee + ₦5,000 Penalty = ₦10,000

  • 2024 Return: ₦5,000 Base Fee + ₦5,000 Penalty = ₦10,000

  • 2025 Return: ₦5,000 Base Fee + ₦5,000 Penalty = ₦10,000

Total Government Debt Due: ₦40,000 (without adding professional fee)

Note: You cannot skip arrears to pay only the current year. The CAC portal enforces sequential clearing from the oldest defaulted year forward.

Director Personal Liabilities and "Inactive" Traps

Under CAMA guidelines, CAC reserves the right to levy late filing penalties against directors in their personal capacity alongside the corporate entity.

Ignoring penalties leads to three main outcomes:

  1. Status Degradation: Your company status changes from Active (Green) to Inactive (Red) on the CAC public search portal (search.cac.gov.ng) 

  2. Banking Restrictions: Commercial banks audit their corporate accounts against the CAC portal. Inactive companies risk "Post No Debit" (PND) restrictions on corporate accounts.

  3. Striking Off: Continued default leads to the permanent removal of your entity from the federal register.


How to Clear Penalty Backlogs Step-by-Step

Step 1: Audit Your Default Years

Search your RC/BN number on search.cac.gov.ng to confirm the exact year your compliance record broke.

Step 2: Prepare Required Financial Statements

  • Business Names: Require basic turnover figures only.

  • Small Companies: Require a signed Statement of Affairs for each defaulted year.

  • Medium/Large Companies: Require full Audited Financial Statements prepared by a licensed accountant.

Step 3: File Sequentially on the CAC CRP Portal

Log into the Companies Registration Portal (CRP), process filings starting from the earliest defaulted year, and generate Remita retrieval references (RRR) for payment.

Step 4: Request Status Reactivation

After clearing all payments, submit your RRR receipts and filing approvals to the CAC Special Processing Unit to update your public badge back to Active.

Need Help Calculating Your CAC Penalty Backlog?

Don't let compounding penalties freeze your business accounts or destroy your corporate standing. Contact our team today for a Free CAC Compliance Audit to calculate your exact fees and clear your backlogs fast.




Disclaimer: This article is for general informational purposes only and does not constitute legal or professional advice. CAC policies, deadlines, and enforcement exercises are subject to changes. Consult a qualified corporate lawyer or accredited CAC agent before taking action based on this information.

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