- The Senate has passed a bill to re-enact the Companies and Allied Matters Act (CAMA)
- The Senate President, Bukola Saraki said that with the CAMA, the House is reshaping Nigeria and changing how business is done
- Saraki said that the bill will reduce bureaucracy, making it easier to comply with regulatory obligations
In order to ensure ease of registration of companies in Nigeria, the Senate on Tuesday, May 15, passed a bill to repeal and re-enact the Companies and Allied Matters Act (CAMA).
The bill is coming 28 years after the passage of the original initial CAMA and is intended to make Nigeria number spot for business throughout Africa, Premium Times reports.
Bukola Saraki, the Senate president, said during the passage of the bill that the ease of doing business is key in the economic growth of any country.
Saraki said: “The processes, rules, and regulations set up by the government or government agencies can either help promote a business-friendly environment or hold businesses back from their entrepreneurial ambitions.
“With the passage of CAMA, we are reshaping Nigeria and we are changing how Nigerians do business. I thank my colleagues for reaching another milestone on our legislative agenda that will positively impact the lives of millions of Nigerians.”
According to World Bank’s Ease of Doing Business ranking, which rates countries for the ease at which one can open, conduct and close down businesses, Nigeria ranks 145 out of 190 nations.
If signed into law, the bill will hopefully provide significant benefits to companies by reducing bureaucracy and making it easier to comply with regulatory obligations.
Much of the restructuring is aimed at encouraging investments that will allow small businesses and startups thrive, lower costs and ease regulatory burdens, which means that the more than 75,000 private companies limited by shares which are established in Nigeria every year will be able to incorporate more easily.
This will lead to savings in professional fees and substantial improvements to the ease of doing business in Nigeria by comparison to competitors.
The bill will also spur more young people to start new business and will enable an individual incorporate a company. It will enable new young and innovative start-ups the opportunity to operate as separate legal entities without the risk of losing their personal assets.
Moreover, minor firms will no longer be needed to have a company secretary or hold Annual General Meetings and the requirement for statutory declaration of compliance has also been removed.
Minimum share capital required for companies to be registered has also been reduced to encourage more investments in small companies; and individuals will no longer need a lawyer to register a company.
The bill will now be transferred to the House of Representatives for concurrence and further transmission to the presidency for assent hopefully.
Meanwhile, Legit.ng reported that the Central Bank of Nigeria (CBN) on Tuesday, May 15, injected 210 million dollars into the inter-bank foreign exchange market to boost liquidity in the system.
The acting director of corporate communications of the apex bank, Isaac Okorafor, in a statement in Abuja, said the CBN allocated 100 million dollars to dealers in the wholesale sector.
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