A Federal High Court in Abuja has ordered the Corporate Affairs Commission (CAC) to restore the registration status of the National Youth Council of Nigeria (NYCN) and recognise Ambassador Sukubo Sara-Igbe Sukubo and other members of the council’s Board of Trustees (BoT) as its legitimate leadership. The court also directed the immediate dissolution of the Interim Management Committee headed by Buhari Shehu, which was established by the CAC and the Federal Ministry of Youth Development to oversee the affairs of the council, declaring its creation and continued operation unlawful.
Judgment Details
The order is contained in the Certified True Copy (CTC) of the judgment delivered by Justice Binta Nyako in Suit No. FHC/ABJ/CS/2142/2025 on June 5 and dated June 11. The judgment was made available to journalists in Abuja on Monday. The suit was instituted by the Incorporated Trustees of the NYCN and Ambassador Sukubo Sara-Igbe Sukubo, who serves as the council’s President and Secretary of the Board of Trustees, against the Registrar-General of the CAC, the CAC, the Minister of Youth Development, and the Federal Ministry of Youth Development.
In her judgment, Justice Nyako held that while the CAC possesses regulatory powers over incorporated trustees, it lacks the authority to determine the tenure of leaders of registered associations or appoint interim management committees to take over their administration. The dispute stemmed from the withdrawal of the NYCN’s certificate of registration by the CAC on October 6, 2025, despite the commission having issued the certificate on October 28, 2020. Following the withdrawal, the CAC, in collaboration with the Ministry of Youth Development, constituted a nine-member Interim Management Committee led by Shehu to manage the affairs of the council.
Plaintiffs' Arguments
Challenging the action, the plaintiffs questioned the constitutionality of provisions of the Companies and Allied Matters Act (CAMA) 2020 that empower the CAC to suspend trustees, appoint interim managers, and establish administrative committees. They argued that the provisions conflict with constitutional guarantees of freedom of association and undermine judicial oversight. The plaintiffs also contended that Sections 839 and 851 of CAMA had previously been invalidated by court decisions and that the CAC could not lawfully rely on them. They further argued that the commission’s actions were taken while an appeal relating to the matter was still pending before a higher court.
Court's Ruling
Delivering judgment, Justice Nyako ruled that the CAC exceeded its statutory powers by deregistering the NYCN and subsequently constituting an interim management structure for the organisation. She consequently nullified the deregistration and ordered the restoration of the status quo that existed before the commission’s intervention. The court directed the CAC to immediately restore the NYCN’s certificate of registration, recognise Ambassador Sukubo and other duly registered trustees as the legitimate leadership of the Board of Trustees, and disband the Interim Management Committee set up to oversee the council.
Justice Nyako held that although the CAC has regulatory oversight over incorporated trustees, such powers must not be exercised in a manner that effectively determines disputes already before the courts. According to the judgment, the leadership and administration of the NYCN had been the subject of multiple litigations before courts of competent jurisdiction, making it inappropriate for an administrative body to take actions that could influence the outcome of pending judicial proceedings.
The judge noted that while the CAC could investigate and supervise compliance with statutory requirements, it could not assume the role of the court by deciding who should govern an association while the matter remained under judicial consideration. “The evidence before this court shows that the defendants went beyond investigation. They purportedly withdrew the certificate of the first claimant and proceeded to constitute an interim management committee to assume control of the organisation,” the court held.
Justice Nyako further observed that the practical effect of the CAC’s decision was the displacement of the existing leadership structure and the installation of another authority in its place, describing the action as premature and capable of rendering ongoing court proceedings ineffective. The court described the commission’s actions in the circumstances of the case as an abuse of court process.
While declining to make a general declaration that Sections 839 and 851 of CAMA are unconstitutional, the judge held that the actions taken pursuant to those provisions in the NYCN matter were unlawful and could not stand. “The court is satisfied that the intervention complained of exceeded what was reasonably necessary to achieve regulatory oversight and encroached into matters properly reserved for judicial determination,” the judgment stated.
Justice Nyako therefore ordered all parties to maintain the position that existed before the CAC’s intervention pending the determination of related disputes currently before the appellate courts.
