By Penlit & Greyson Law Firm — Corporate & Commercial Law Experts in Nigeria
As the year draws to a close, Nigerian businesses enter one of the most important periods for financial accountability, regulatory compliance, and legal risk management.
For many companies, year-end audits, tax reviews, and corporate governance checks are not just routine tasks — they are legal obligations under Nigerian law and critical steps for protecting the business from penalties, reputational damage, and operational disruptions.
This article outlines the key legal responsibilities every company must complete before December 31st to remain compliant and ready for a successful new year.
1. Prepare for Statutory Year-End Audits
Every registered company in Nigeria is required by law to prepare and submit annual financial statements audited by an external auditor.
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Key audit requirements include:
- Preparing accurate financial statements for the fiscal year
- Ensuring proper documentation of income, expenses, and financial activities
- Engaging a licensed external auditor
- Reviewing internal controls and financial processes
- Ensuring compliance with Companies and Allied Matters Act (CAMA 2020)
Failing to conduct a proper audit may lead to:
✔ Fines from CAC
✔ Tax penalties
✔ Difficulty accessing loans or investors
✔ Legal disputes due to inaccurate reporting
2. File Annual Returns with the Corporate Affairs Commission (CAC)
Every business, whether small or large, is mandated to file Annual Returns with CAC.
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You must ensure:
- All information filed with CAC is up to date
- Directors’ details, shareholding structure, and registered address are correct
- Annual Returns are submitted before the deadline to avoid penalties
Non-compliance leads to:
❌ Daily penalties
❌ Potential strike-off by CAC
❌ Legal restrictions on business transactions
3. Resolve Outstanding Tax Obligations
The end of the year is the perfect time to reconcile and settle tax obligations with:
- FIRS
- State Internal Revenue Services
- VAT regulators
- PAYE and pension compliance authorities
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Required checks include:
- Tax clearance verification
- VAT filing status
- CIT (Company Income Tax) reconciliation
- WHT (Withholding Tax) payments
- Employee PAYE compliance
- Pension and NSITF updates
Tax non-compliance can trigger:
⚠ Audits
⚠ Penalties and interest fees
⚠ Business account restrictions
⚠ Reputational damage
4. Review Employment Contracts & HR Compliance
December is a peak period for HR issues — bonuses, leave entitlements, staff misconduct, and contract renewals.
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Companies should:
- Review employment contracts for compliance with labour laws
- Confirm payment of statutory benefits and deductions
- Update HR policies for the coming year
- Address unresolved employee disputes
- Ensure fair termination and redundancy processes
Improper HR practices expose businesses to litigation, compensation claims, and industrial disputes.
5. Conduct a Corporate Governance Check
Strong governance protects your company from legal risks and investor concerns.
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End-of-year governance tasks include:
- Conducting required board meetings
- Updating board resolutions
- Reviewing internal controls
- Ensuring director responsibilities are properly documented
- Approving year-end financial statements
Poor governance increases the risk of:
❌ Investor disputes
❌ Regulatory sanctions
❌ Internal fraud
6. Update and Review All Company Contracts
Contracts affect revenue, partnerships, supply chains, and client relationships.
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Conduct a legal review of:
- Vendor and supplier agreements
- Lease agreements
- Partnership contracts
- Client service contracts
- Employee contracts
- Loan and investment agreements
A year-end contract audit ensures your business enters the new year protected, compliant, and ready for growth.
7. Strengthen Cybersecurity & Data Compliance
December sees a spike in cyber-attacks and data breaches.
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Companies must:
- Update cybersecurity policies
- Review third-party data processors
- Ensure NDPR compliance
- Conduct risk assessments
- Protect customer and financial data
A data breach can lead to lawsuits, fines, and loss of public trust.
Conclusion: Stay Compliant, Stay Protected — Let Penlit & Greyson Support Your Year-End Review
Year-end compliance is not just a financial activity — it is a legal requirement essential for business continuity, credibility, and growth.
Penlit & Greyson Law Firm provides expert corporate, commercial, tax, employment, and regulatory compliance services to ensure your company meets all its obligations before the year closes.
Need Legal Help Preparing for Year-End?
Penlit & Greyson can assist with:
✔ Corporate audits
✔ CAC filings
✔ Contract review
✔ Employment law compliance
✔ Tax advisory
✔ Governance and risk assessment
✔ Cybersecurity & NDPR alignment
Contact us today to schedule your Year-End Corporate Compliance Review.
Ensure your business enters the new year protected, compliant, and positioned for success.
