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Annual Returns Filing In Nigeria- Everything You Need To Know About Filing Annual Returns

Annual Returns Filing

When you hear “annual returns filing in Nigeria,” think of it as a yearly check-in that businesses do with the government. It’s like taking your car for an inspection; only this time, it’s your company’s financial health that’s under the microscope.

Filing annual returns is giving the Corporate Affairs Commission (CAC) a snapshot of what your business has been up to over the past year. It’s crucial, not just because it’s the law, but because it shows you’re playing by the rules and your business is up and running as it should be.

See Also: How to transition from not having a business idea to having a functional registered business.

Start Your Business in 30 Days Even If You Don't Have An Idea
Start Your Business in 30 Days Even If You Don’t Have An Idea

Imagine walking into a store where everything is out in the open—no secrets. That’s what annual returns do for your business. They lay everything on the table for the CAC, investors, and even your customers, building a bridge of trust.

In Nigeria, trust is golden. When you file your annual returns, you’re polishing that gold and showing everyone that your business is worth its weight.

See Also: Comprehensive guide on how to register your business with CAC

What is Annual Returns?

Annual returns are a compulsory yearly submission to the CAC that details your company’s financial and operational status. It’s a report card of sorts that outlines your company’s structure, governance, and financial health over the previous 12 months.

The Purpose of Annual Returns Filing

These filings aren’t just bureaucratic red tape. They offer a wealth of benefits to your business. It helps you maintain good standing with the CAC. Also, it upholds stakeholder confidence, and keeps your business eligible for loans, investments, and government contracts.

In essence, annual returns are a non-negotiable component of running a credible and transparent enterprise in Nigeria.

See Also: How to register a company in Nigeria

The CAMA 2020 Mandate for Filing Annual Returns

The Companies and Allied Matters Act (CAMA) 2020 requires all registered companies in Nigeria to file annual returns. This law emphasizes regular reporting as a key part of corporate responsibility and governance.

By following the annual return rules of CAMA 2020, your business not only complies with the law. It also stands out as a dynamic participant in Nigeria’s economy. We often encourage the entrepreneurs we work with to file their annual returns on time and we have helped thousands of entrepreneurs to register their businesses and become compliant with the law. Reach us at 08038874148 or 08188122223 to work with us.

What Section 374 of CAMA 2020 Specifies

Section 374 of CAMA 2020 obliges every registered company in Nigeria to submit an annual return to the Corporate Affairs Commission (CAC).

This return must present a true and honest view of the company’s status. It must include the registered office address, the members’ register, shares, debentures, debt levels, and a list of current and past members.

Public companies must also disclose the market price of their shares and the total number of shares and debentures issued.

See Also: How to get TIN in Nigeria.

Go from idea to starting your business in 30 days
Go from idea to starting your business in 30 days

Types of Business Entities Required to File Annual Returns

The obligation to file annual returns is not limited to one type of business entity.

Here’s who needs to file annual returns:

Business Names:

Sole proprietorships and partnerships, which operate under a registered business name, must file returns that detail the nature of the business, particulars of ownership, and any changes that have occurred during the year.

Private Companies:

Whether it’s a small start-up or a large enterprise, private limited companies must file annual returns along with their financial statements. They must provide a clear picture of their financial status.

Public Companies:

Publicly listed companies face more stringent reporting due to their wide investor base. They must provide annual returns with comprehensive financial reports, including audited profit and loss statements and balance sheets.

Incorporated Trustees:

Organizations that are registered as incorporated trustees, such as NGOs and religious organizations, are also required to file annual returns that demonstrate compliance with regulatory requirements.


While not all partnerships may be registered, those that are must provide returns similar to business names, including details of the partners and the business activities.

By fulfilling these requirements, business entities not only abide by the law but also affirm their commitment to corporate probity. Timely submission of these returns is a testament to a company’s operational health and establishes a foundation of trust with stakeholders and the regulatory body alike.

See Also: Detailed explanation of the different business structures in Nigeria

The Importance of Filing Annual Returns

Here are the benefits of filing annual returns in Nigeria:

Upholding Statutory Compliance and Gaining Legal Recognition

Filing annual returns isn’t just about ticking a box. It’s a legal imperative that endorses your business as a legally recognized entity under Nigerian law.

By staying compliant, you’re not just avoiding the penalties for non-compliance but also signalling to the market that you operate a law-abiding entity. This kind of legal recognition is crucial for any business looking to establish itself firmly in its industry.

Accessing Post-Incorporation Services from CAC

The journey of a business doesn’t end at incorporation. Maintaining your company’s active status with the CAC by filing annual returns grants you access to essential post-incorporation services.

Whether you’re looking to restructure, attract new partnerships, or expand, these services are only available to businesses that have kept up with their annual  filings. It’s like a membership card to an exclusive club where the benefits are integral to your business’s continued growth and adaptability.

Certifying Your Business as a Going Concern

Filing annual returns does more than just fulfill a regulatory requirement. it’s a public declaration that your business is active and operational. This ‘going concern’ status is critical, especially when seeking finance or investment. It assures lenders and investors that the company is a viable entity with a future, making it a less risky proposition.

Meeting the Eligibility Criteria for Contract Bidding

When it comes to tendering for contracts, especially with government bodies, your annual returns can be your ticket in. These documents are often a prerequisite for prequalification, as they demonstrate fiscal responsibility and organizational accountability.

By showcasing a track record of timely filed returns, your business positions itself as a trustworthy and reliable contender for substantial contracts.

Boosting Public Trust and Investor Confidence

The transparency that comes with regular annual returns filings builds a profile of reliability and trustworthiness. In the eyes of the public and potential investors, a business that openly discloses its financial standings is one that values integrity. This can be instrumental in forging lasting relationships with customers, investors, and other stakeholders, and it can significantly enhance your business’s reputation.

Facilitating Financial Planning and Analysis

Regular annual returns filing can serve as a cornerstone for your internal financial analysis. They provide a structured overview of your company’s financial evolution, enabling you to benchmark performance, plan for the future, and make informed strategic decisions.

The discipline of annual reporting keeps your records up-to-date, and facilitates a clearer understanding of profit margins, cost structures, and cash flow trends.

Enhancing Loan and Credit Opportunities

Financial institutions often require evidence of compliance with annual filings before approving loans or credit lines. By providing a series of annual returns, you’re demonstrating fiscal discipline, which can improve your company’s creditworthiness. This, in turn, can lead to more favourable loan terms and interest rates, directly impacting your company’s bottom line.

Aiding in Dispute Resolution and Legal Proceedings

In the event of legal disputes or litigation, having a consistent record of annual returns can substantiate your company’s financial narrative. These documents can provide crucial evidence to support your case, demonstrating the company’s historical financial performance and operational decisions.

Streamlining Due Diligence for Mergers and Acquisitions

If you’re considering a merger, acquisition, or looking to sell your business, a history of filed annual returns can significantly expedite the due diligence process. These records offer potential partners or buyers transparency into your business operations, reducing perceived risk and potentially increasing the company’s valuation.

Contributing to National Economic Data

On a broader scale, when businesses across sectors comply with annual return requirements, they contribute to the accuracy and richness of Nigeria’s economic data. This aggregated financial information can help shape economic policy and development initiatives, potentially leading to a more conducive business environment for all.

Enhancing Market Presence and Brand Image

A company known for its regulatory compliance and financial transparency can use this reputation as a marketing tool. In a market where consumers are increasingly concerned about corporate governance, a track record of compliance can enhance your brand image and act as a differentiator in crowded marketplaces.

Encouraging Investor Relations and Shareholder Engagement

For publicly traded companies, annual returns form part of the suite of communications that facilitate ongoing investor relations. Shareholders can use the information from these filings to engage with management during AGMs and other forums, fostering a culture of engagement and transparency.

Leveraging Tax Planning and Benefits

While annual returns are distinct from tax filings, they provide a structured framework that can be advantageous for tax planning. The financial insights gleaned from annual returns can help your business identify tax-saving opportunities and ensure that all financial decisions are tax-efficient.

See Also: Procedure for registering a company in Nigeria

How to Prepare For Your Annual Returns Filing

Gather the right Financial Document

To file your annual returns, the financial story of your company must be comprehensive and transparent. This involves compiling several critical documents:

  • Financial Statements: Including the balance sheet, income statement, and cash flow statement. They collectively reflect the financial health of your business.
  • Directors’ Report: A narrative explaining the company’s affairs, highlighting significant events that have occurred within the year, and offering insights into future plans.
  • Auditors’ Report: An independent assessment that provides credibility to your financial statements, ensuring they present a true and fair view of the company’s financial position.

Each document serves a distinct purpose and provides stakeholders with confidence in your company’s financial integrity. This not only fulfills statutory obligations but also reassures investors, lenders, and partners of your business’s robustness and reliability.

Update Company Information

The details you file must reflect the current reality of your business:

  • Registered Office Address: This is not just a contact detail—it’s where official communications will be sent, and legal notices received.
  • Directors and Secretary: Keeping this information up to date is vital as these are the individuals legally responsible for the company’s adherence to the law.
  • Shareholders’ Information: Accurate records here are essential for both regulatory reasons and internal governance.

Any discrepancies or outdated information can lead to unnecessary legal complications, delayed filings, and could potentially damage your business’s reputation. In some cases, it could even result in penalties or more severe legal consequences.

Engage with Professionals

Professional assistance is not just about ticking off a compliance checklist; it’s about adding value to your business:

  • Auditors or Accountants: These professionals are not only necessary for preparing financial documents but also for advising on financial strategies and ensuring adherence to the latest accounting standards.
  • Legal Advisors: Engaging with legal experts ensures that all statutory disclosures are made and that your filing complies with the latest legal requirements.

The choice of professionals you engage with can have a significant impact on your business. Select individuals or firms that are not only knowledgeable in Nigerian corporate law and accounting practices but also understand the unique aspects of your business sector.

See Also: Advantages of registering a business in Nigeria

Filing Process for Annual Returns in Nigeria

You can file your annual returns in Nigeria through the Corporate Affairs Commission’s (CAC) portal. This means you don’t need to physically visit the CAC offices to do this. To ensure you do this right, enlist the services of ReDahlia– 08188122223 or 08038874148. We ensure the process is seamless for you.

Benefits of Filing Your Annual Returns Online

  • User-Friendly Interface: The online system is designed to guide you through each step, reducing the likelihood of errors and omissions.
  • Time-Saving: It eliminates the need for physical document handling and queuing, significantly reducing the turnaround time for filing returns.
  • Secure and Reliable: With advanced security measures in place, the system ensures the integrity and confidentiality of your business’s financial data.
  • 24/7 Accessibility: Businesses can now manage their filing process at their convenience, from anywhere, at any time.

See Also: Factors to consider before choosing a legal structure in Nigeria.

Steps in Filing Your Annual Returns

The filing process, while simplified through the online system, still requires attention to detail and an understanding of the requirements:


Before logging into the CAC portal, ensure that all necessary financial statements and company information are up-to-date and ready for submission.

Account Creation/Login:

Create an account on the CAC portal or log in if you already have one.

Form Selection:

Choose the appropriate annual return form based on your entity type:

  1. Form CAC/BN/7 for Business Names.
  2. Form CAC 10 for small private companies.
  3. Form CAC 10A for other companies.
  4. Form CAC/IT4 for Incorporated Trustees.

Filling Out Forms:

Input the required information, carefully following instructions for each field to avoid errors.

Document Upload:

Attach the necessary documents, which may include audited financial statements, the directors’ report, and the statement of affairs.

Fee Payment:

Pay the prescribed fee via the online payment platform, which is secure and provides instant receipts for transactions.

Submission and Acknowledgement:

After reviewing all the information for accuracy, submit the form. You will receive an acknowledgment, which typically includes a receipt and a summary of the filed return.


Occasionally, the CAC may request additional information or clarification. Stay alert for any communication from the CAC to address such queries promptly.

See Also: Benefits of registering a business in Nigeria.

Common Mistakes to Avoid in Annual Returns Filing

Here are the common mistakes to avoid when filing your annual returns

Providing Inaccurate Financial Information

Accurate financial data is the bedrock of annual returns. Errors can arise from simple miscalculations, oversight in financial record-keeping, or misunderstandings of accounting principles.

  • Double-Check Figures: Always review financial statements multiple times for accuracy.
  • Reconcile Accounts Regularly: Ensure all accounts are reconciled periodically to avoid discrepancies.
  • Stay Informed: Keep abreast of changes in accounting standards and regulations.

Prevent inaccuracies by maintaining a consistent and organized accounting system throughout the year, and consider employing professional accounting services for verification before submission.

Missing Filing Deadlines

The repercussions of missing the annual returns filing deadline can range from fines to the more severe consequence of having your company struck off the register.

  • Set Reminders: Use digital tools to set multiple reminders leading up to the deadline.
  • Early Preparation: Begin the process well in advance to account for any unforeseen delays.
  • Understand Extension Policies: If necessary, be aware of the conditions under which extensions can be granted and how to apply for them.

It’s crucial to understand the timeline and build in a buffer period to ensure that your returns are filed punctually.

Neglecting to Update Company Information

Outdated or incorrect company information can lead to a host of issues, from legal discrepancies to miscommunication with stakeholders.

  • Regular Reviews: Schedule periodic reviews of your company information to ensure everything is current.
  • Document Changes: Keep a record of any changes in company structure, management, or operations, and update the CAC accordingly.
  • Communicate with Stakeholders: When changes occur, promptly inform all relevant parties.

By keeping company information up to date, you can avoid the pitfalls that come with having inaccurate records on public file.

See Also: How to choose the right business structure in Nigeria.

Advantages of Timely and Accurate Filing of Annual Returns

Here are the benefits of filing your annual returns on time:

Legal Compliance and Avoidance of  Penalties

Adhering to the stipulated timelines for filing annual returns is crucial for maintaining legal compliance under Nigerian corporate law. The immediate benefit is the avoidance of late filing penalties which can accrue and become a financial burden. More significantly, staying compliant safeguards your business from severe legal repercussions, including the risk of de-registration, which can halt your company’s operations entirely.

  • Maintain Good Standing: On-time and accurate filings affirm your company’s standing with regulatory bodies.
  • Prevent Escalating Costs: Avoid the accumulation of penalties that can escalate from fines to mandatory audit requirements or legal proceedings.

Reinforcement of Transparency and Accountability

In the current business environment, stakeholders value transparency and accountability as indicators of a company’s reliability and integrity. By consistently filing your annual returns, you demonstrate a commitment to these principles, which can strengthen relationships with:

  • Investors: Who look for transparency as a sign of good governance.
  • Customers: Who increasingly prefer to do business with accountable companies.
  • Partners and Suppliers: Who seek assurance that your business is stable and dependable.

Positive Impact on the Company’s Reputation

A company’s reputation is one of its most valuable assets. Timely and accurate filings contribute to building a reputation of professionalism and reliability.

  • Enhance Brand Image: It projects an image of a company that is diligent and attentive to detail.
  • Attract Talent: A reputable company can attract and retain high-caliber employees who want to be associated with a credible brand.
  • Open Doors to Opportunities: A solid reputation paves the way for new business opportunities, partnerships, and potential avenues for expansion.

See Also: How to register a business name in Nigeria.


Filing your annual returns carefully shows that your business cares about being open and responsible. It’s not just about following rules; it’s about showing that your company is run the right way.

This process is your business’s way of proving it operates honestly and with good intentions.

In short, filing annual returns is very important because it helps prove that your business is trustworthy and built to last. It’s a chance for businesses to show they are active and handling their money properly.

By always filing your annual returns on time and correctly, your business can take advantage of many chances to stand out as a leading example in Nigeria’s business community.

Additional Resources

If you wish to delve deeper into the details of annual return filings or require specific guidance, the following resources will prove invaluable:

  • Corporate Affairs Commission (CAC): Visit CAC’s official website for up-to-date information on filing procedures, deadlines, and any recent changes in the filing requirements.
  • Companies and Allied Matters Act (CAMA) 2020: The full text of the CAMA 2020 can be accessed through legal repositories or directly through links provided on the CAC’s resources section.
  • Talk to ReDahlia at 08188122223 or 08038874148 for your annual returns filings and tax compliance.

Frequently Asked Questions About Filing Annual Returns in Nigeria

Here are frequently asked questions about filing annual returns in Nigeria. If you have more questions not covered here, please reach out to ReDahlia at 08188122223 or 08038874148.

Q: What does it mean to file your annual returns?

A: Filing your annual returns means submitting a formal document to the Corporate Affairs Commission (CAC) that provides a snapshot of your company’s financial health and operational status over the previous fiscal year. This includes information about your company’s earnings, expenditures, share capital, and company structure.

Q: When do I need to file my annual return?

A: In Nigeria, annual returns must be filed every year not later than 30 days after the anniversary of a company’s incorporation. For newly incorporated companies, the first annual return is due 18 months after incorporation.

Q: Why do I need to file my annual returns?

A: Filing annual returns is a statutory requirement in Nigeria that ensures your company remains in good standing. It’s important for regulatory compliance, maintaining public trust, ensuring eligibility for business opportunities, and fulfilling corporate governance obligations.

Q: How much does it cost to file my annual returns?

A: The cost varies depending on the type of company and can be subject to change. Typically, the fees are outlined on the CAC website. As of the latest update, the cost can range from a few thousand Naira for small enterprises to tens of thousands for larger companies. Always check the CAC website or contact an accredited agent for the most current fee structure. Talk to ReDahlia at 08188122223 or 08038874148.

Q: What do I need to file my returns?

A: You’ll need your company’s financial statements, a list of the company’s officers, details of the registered office address, and information about shareholders and share capital. All this must be compiled accurately and submitted along with the prescribed filing fee through the CAC online portal.

Q: How do I file my annual returns if my company hasn’t traded during the year?

A: Even if your company has not been active, you are still required to file annual returns. You will need to declare that the company did not trade and submit the return with a ‘nil’ account.

Q: Can I file my annual returns myself, or do I need an accountant or lawyer?

A: While it is possible to file annual returns yourself, it is often advisable to engage the services of a professional, such as a chartered accountant or lawyer, especially if you are unfamiliar with the process or if your company’s financials are complex.

Q: What happens if I file my annual returns late?

A: Late filing of annual returns can attract penalties, and if continually delayed, could lead to your company being listed as inactive or possibly struck off the register.

Q: Are there any exemptions to filing annual returns?

A: No. All registered companies in Nigeria are required to file annual returns without exemption.

Q: Can I correct a mistake after filing my annual returns?

A: Yes, corrections can usually be made, but it may involve additional paperwork and potentially more fees. It’s best to ensure accuracy before submitting your returns to avoid this.

Q: Is there an audit requirement for annual returns?

A: Yes, companies are required to submit audited financial statements along with their annual returns, except for small companies that meet specific criteria exempting them from audit requirements.

Q: What if my company is dormant? Do I still need to file annual returns?

A: Yes, dormant companies must file annual returns to maintain their registered status with the CAC.

Q: How can I verify that my annual returns have been filed?

A: Once filed, you should receive an acknowledgment from the CAC. You can also check the status of your filing online through the CAC company status search feature.

Q: What are the consequences of never filing annual returns?

A: Continuous failure to file annual returns can result in your company being struck off the register, and legal action could be taken against the company directors or owners.

Q: Can I file annual returns for previous years if I missed doing so?

A: Yes, you can file annual returns for previous years, but you may incur late filing penalties. It’s crucial to address these backlogs promptly to avoid compounding fees and legal issues.

Q: Are annual returns and tax returns the same thing?

A: No, they are not. Annual returns are filed with the Corporate Affairs Commission and contain information about your company’s structure and financial status. Tax returns are filed with the Federal Inland Revenue Service (FIRS) and relate to income and other taxes.

Q: How can foreign companies operating in Nigeria file their annual returns?

A: Foreign companies in Nigeria must also comply with annual returns filing requirements. They typically do this through their local representatives or the legal entities established in Nigeria.

Q: Do nonprofit organizations need to file annual returns?

A: Yes, nonprofit organizations, such as NGOs and religious organizations, are also required to file annual returns in the form of a statement of affairs.

Q: What digital platforms are available for filing annual returns in Nigeria?

A: The CAC has a dedicated online portal for filing annual returns, which is accessible through their official website.

Q: Can annual returns be used as official documents for business transactions?

A: Yes, annual returns can serve as official documents to prove a company’s legal and operational status and may be required in various business transactions and agreements.

Q: How does the CAC communicate with companies about their annual return filing?

A: The CAC typically communicates with companies via email, through the contact information provided during registration or on the CAC portal. It is crucial to keep your contact details up to date with the CAC.

Q: Are there any changes to annual return filing due to COVID-19 or other emergencies?

A: The CAC may issue special guidelines or extensions for filing annual returns during emergencies like the COVID-19 pandemic. Always check the CAC’s official communications for the latest updates.

Q: Where can I find a template or guide for preparing my company’s annual returns?

A: Templates and guides can be found on the CAC’s official website or obtained from professional service providers.

How We Can Help You Register Your Business And Comply With Taxes Monthly

Send us a message on WhatsApp- 08188122223 or 08038874148 to help you with your business registration and tax compliance.

Our Essential Compliance Service Covers:

  • Initial Registration for VAT/TIN Certificate: Complete facilitation of your initial VAT/TIN registration process with FIRS and LIRS.
  • Initial Registration for PAYE, Business Premises, and Development Levy.
  • Monthly PAYE: Computation of PAYE deductible, remittance of PAYE, and filing of monthly returns.
  • Monthly VAT: Computation of VAT payable, remittance of VAT, and filing of monthly returns, taking cognizance of applicable tax laws.
  • Annual Business Premises and Development Levy Renewal

On-Demand Premium Services

  • Should your business require our ProMAX Compliance Service, which includes account preparation, auditing, and TCC filing, please contact us directly. This premium service is tailored to your specific needs and billed upon request.

Why Choose Our Compliance Services?

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Get in touch today by clicking the Contact Us page or sending us a message on WhatsApp: 08038874148 or 08188122223.

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