Posted Fri, Aug 7, 2020 2:57 PM

Presidential assent of the Companies and Allied Matters Act (Repeal and Re-enactment) bill

The National Assembly Business Environment Roundtable (NASSBER) is pleased that President Muhammadu Buhari has signed the Bill for an Act to repeal the Companies and Allied Matters Act 1990 (CAP C20, LFN 2010) and enact the Companies and Allied Matters Act 2020.  This law will implement a fair, and modern framework for company law which is essential to improving Nigeria’s business environment and achieving global competitiveness.

The Companies and Allied Matters Act (CAMA) had been in operation for 30 years without any substantial amendment, despite constant developments in the global business landscape. Over time, the law has become outdated and presented obstacles to the registration and operations of companies in Nigeria, especially micro, small and medium enterprises.

In view this, the Companies and Allied Matters Act is one of NASSBER’s priority legislation because it was necessary to explore a reform that will bring the law more in line with today’s business needs and realities, promote enterprise, enhance competition, stimulate investment in Nigeria, and remove unnecessary burdens for businesses, which will ultimately lead to the growth and development of the economy.

A few of the benefits enshrined in the new CAMA include:

• A cheaper and easier process to set up, run and wind up a company by removing several procedural requirements that can complicate both the setting up of a company and its initial operation.
• The removal of unnecessary regulatory requirements for small companies, such as the requirement for annual general meetings and company secretaries.
• Electronic transfers of shares.
• Allowing one individual to set up a company, which is good for start-ups and young entrepreneurs.
• Creation of a new form of legal identity for businesses called the Limited Liability Partnership (LLP), which is targeted at increasing foreign investment in Nigeria.
• Reduction of the minimum share capital for companies and start-ups in Nigeria, to encourage more investment and create new jobs.

The new CAMA will foster the competitiveness of the Nigerian business environment and position the country as an attractive place to set up and run a business. It is a crucial pillar for building a modern, business-friendly, private-sector-led economy. A genuinely modern and effective framework will promote enterprise, enhance competitiveness, and stimulate investment.

On behalf of NASSBER, the Nigerian Economic Summit Group (NESG) commends the National Assembly for the quick passage of the Bill. We also acknowledge the vital role played by the Presidential Business Environment Council (PEBEC) chaired by Vice President Yemi Osinbajo, SAN; Attorney General of the Federation and Honourable for Justice; Corporate Affairs Commission; and all the stakeholders that contributed to this critical piece of legislation. This is a welcome development as it will achieve economic growth and attract investment.

About NESG:

The Nigerian Economic Summit Group (NESG) is a private sector-led think-tank organization that promotes sustainable growth and development in the Nigerian economy. It is a not-for profit/non-partisan organisation with a mandate to promote and champion the reform of the Nigerian economy into an open, private sector-led economy that is globally competitive on a sustainable basis. Over the years, it has emerged as the leading platform for public-private dialogue in Nigeria.

About NASSBER:

NASSBER is a platform for the legislature and the private sector to engage, deliberate and take action on a framework that will improve the Nigerian business environment. It is a partnership between the Nigerian Economic Summit Group and Nigerian Bar Association – Section on Business Law.