The Corporate Affairs Commission (CAC) has told the Senate that Federal Government policies placed significant pressure on its finances, making it difficult to remit its full operating surplus into the Consolidated Revenue Fund (CRF).
The Registrar-General of the CAC, Hussaini Magaji, made the disclosure on Monday while appearing before the Senate Committee on Finance during an investigative hearing on the remittance of operating surpluses by government-owned agencies.
His explanation followed allegations by the Fiscal Responsibility Commission (FRC) that the commission failed to remit about ₦13.9 billion in operating surplus between 2023 and 2025.
Responding to the allegation, Magaji said the CAC’s financial challenges were largely caused by government policies rather than poor financial management.
He explained that the commission operates as a self-funded agency, relying entirely on internally generated revenue while also remitting 50 percent of its income to the Federal Government as required by law.
According to him, the implementation of the government’s 50-50 revenue deduction policy, combined with reforms that reduced CAC service fees by 50 percent under the ease of doing business initiative, significantly affected the agency’s finances.
Magaji said the policies made it difficult for the commission to meet staff salaries, operational costs and other financial obligations while also settling outstanding remittances.
Despite the challenges, he disclosed that reforms introduced by the commission had improved its financial performance, with annual revenue increasing from ₦14 billion in 2022 to ₦52.89 billion in 2025.
He added that the CAC remitted over ₦56.3 billion to the Federal Government during the period through direct deductions and other payments.
To address the outstanding liabilities, the Registrar-General announced that the commission had adopted a structured repayment plan and pledged to remit ₦500 million every quarter until the debt is cleared.
He also revealed that the CAC had already paid ₦489 million as part of the repayment plan.
Following the hearing, the Senate Committee directed the CAC, the Fiscal Responsibility Commission, and its secretariat to reconcile their records and submit a detailed report within two weeks to determine the exact outstanding liabilities.
