MITIGATING THE ABUSE OF CORPORATE PERSONALITY: LEGAL FRAMEWORKS AND JUDICIAL APPROACHES TO ADDRESS FRAUDULENT USE OF CORPORATE STRUCTURES IN NIGERIA.

By defining the corporation as a distinct legal entity, the idea of the principle of corporate personality, as codified in Nigerian corporate law, has served as a foundation for business growth. However, serious flaws in the legal and judicial systems have been revealed by the abuse of this idea, especially through dishonest tactics like asset sheltering, tax evasion, and creditor evasion. This study highlights the shortcomings and difficulties of enforcing current legal frameworks, such as the Companies and Allied Matters Act (the Companies and Allied Matters Act (CAMA)), in addressing the misuse of corporate personhood. The effectiveness of legal tactics, such as the piercing of the corporate veil theory, in discouraging dishonest behavior is also evaluated. Despite the value of these processes, the paper argues that they are insufficient without specific reforms that increase legal accountability, close legislative gaps, and promote consistency in court decisions. Through a combination of proactive court interventions and legislative amendments, this article aims to provide a comprehensive approach to decrease the fraudulent exploitation of company structures and enhance the integrity and transparency of Nigeria's corporate environment.