Integrate Beneficial Ownership Register Into Enforcement, Compliance Frameworks, CISLAC Urges Regulators

The Civil Society Legislative Advocacy Centre (CISLAC) has urged various regulatory bodies in the country to integrate the Beneficial Ownership Register (BOR) into their compliance and enforcement frameworks in the country.

A ‘beneficial ownership register’ is a public database that records the identities of the natural persons who ultimately own or control a legal entity, like a company, allowing for transparency regarding who truly benefits from the entity, which is crucial for combating money laundering, corruption, and other illicit activities; essentially, it is a list of the “real” owners behind a company, not just the publicly listed shareholders.

This, the civil society organisation highlighted, would help the country in combating corruption, illicit financial flows (IFFs), tax evasion, and money laundering.

Speaking at a two-day sensitisation and capacity building workshop on Nigeria’s Beneficial Ownership Register (BORs), yesterday in Lagos, the executive director, CISLAC, Auwal Rafsanjani said the register would help in tracking, detecting, and prosecuting financial crimes.

The event organised by CISLAC with Support from OXFAM in collaboration with Corporate Affairs Commission (CAC), held in Lagos on Wednesday February 26th, 2025, Rafsanjani noted, would help encourage corporate transparency.

He said that since 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, the country has demonstrated global leadership in financial transparency.

According to him, “The PSC Register is not just a database. It is a powerful tool for reform. By mandating the public disclosure of individuals with significant control over companies and Limited Liability Partnerships (LLPs), it dismantles layers of secrecy that enable illicit financial flows and corporate malpractice.

“It will Improve compliance and enforcement mechanisms, ensuring that companies adhere to disclosure requirements, thereby reinforcing accountability in the corporate sector.

“I urge Regulators to integrate beneficial ownership data into their compliance and enforcement frameworks. Also the BMOs and the private sector embrace full compliance with beneficial ownership disclosure requirements, fostering a transparent and competitive business environment.”

Rafsanjani emphasised that corporate secrecy has long facilitated financial misconduct, draining resources meant for critical sectors like healthcare, education, and infrastructure.

He explained that Nigeria loses billions of dollars annually to illicit financial flows, with anonymous shell companies serving as conduits for corruption and capital flight.

“Corporate secrecy has long been a breeding ground for corruption, money laundering, and illicit financial flows, which drain national resources meant for healthcare, education, infrastructure, and economic development. Nigeria loses billions of dollars annually to illicit financial flows, with shell companies and anonymous corporate ownership structures serving as key enablers of fraud and capital flight.”

He noted that when fully adopted it would provide enforcement agencies with actionable data to track illicit financial activities, while increasing investor confidence by fostering an open and trustworthy business environment.

On his part, the registrar general, CAC, Hussaini Ishaq Magaji, said transparency in ownership helps create a level playing field for businesses, fostering a competitive and fair market environment.

Represented by an assistant director at CAC, Muhammad Abdullahi, Magaji, opined that the success of the BOR depends on the active participation and collaboration of various stakeholders.

“Regulatory and security bodies such as the Corporate Affairs Commission (CAC), the Nigeria Extractive Industries Transparency Initiative (NEITI), Bureau of Public Procurement (BPP), Federal Inland Revenue Service (FIRS), The Nigeria Police, Economic and Financial Crime Commission (EFCC), Department of State Security Service (DSS), Nigeria Financial Intelligence Unit, and many more play a critical role in maintaining and enforcing the register.

“Private sector companies must comply with the requirements to disclose their beneficial owners, ensuring that their operations are transparent and lawful.”

For other stakeholders present, despite the establishment of a beneficial ownership register, there is a need for robust mechanisms to verify the accuracy of the information provided and to address potential noncompliance and need to improve interagency coordination.

Speaking also, Lawrence Dube, said sustained political commitment is necessary to ensure the continued prioritisation of BOR reforms and to address any potential resistance or pushback from vested interests.

“Stakeholders play very important roles in strengthening beneficial ownership transparency through transforming the beneficial ownership registers from mere bureaucratic tools into dynamic instruments of accountability and reform. By leveraging collective expertise and coordinated action, they can help ensure that the true faces behind corporate entities are revealed—thereby curbing corruption, improving market integrity, and bolstering public trust in both business and government.”

Participants at the event were

Asst. Director Compliance/Litigation, Corporate Affairs Commission, CAC, Salisu Abubakar; Manager Professional Practice Institute of Chartered Accountant of Nigeria ICAN, Chioma Udemba; Executive Director, Civil Society Legislative Advocacy Centre, CISLAC, Mr. Auwal Ibrahim Musa; Keynote Speaker/Assistant Director, Corporate Affairs Commission, Muhammad Abdullahi, Coordinator, Tax Justice and Governance Platform Lagos State, Mike Alade and Senior Program Officer, Civil Society Legislative Advocacy Centre, CISLAC, Ayo Omowu, amongst others.