New CAMA Will Reduce Regulatory Burden On Nigerian SMEs – Presidency

Jumoke Oduwale, Special Adviser To President Muhammadu Buhari on Ease of Doing Business

Nigeria’s new Companies and Allied Matters Act, will reduce regulatory burden on businesses operating in Nigeria, the Special Adviser to the President on Ease of Doing Business, Jumoke Oduwole, has said.

She said this in an interview on TVC News Business Nigeria, during discussions on, ‘Assessing Grey Areas, Prospects and Impact on Business Climate,’ in view of the newly assented CAMA 2020.

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President Muhammadu Buhari, had granted assent to the new amended Companies and Allied Matters Act which repeals the CAMA Act of 1990.

The development had given room to the Corporate Affairs Commission to introduce new regulations to better govern business structure in the country.

The Minister of Trade and Investment, Adeniyi Adebayo, said the move would help MSMEs across Nigeria to flourish.

The new law would also help elevate Nigeria’s rating on the ease of doing business, expert believe.

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The Special Adviser said, “Some of the most innovative changes that the private sector has been particularly excited about have to do with the structure of formation of a company.

“Now you can have a single share holder, single member company. Now you can also have a limited liability partnership and limited partnership.

“These are the new configurations of companies that some other climates in the world have them, as the Nigerian regulatory climate also now provides for them.

“It also reduces the regulatory burden on Small and Medium Scale businesses in particular. It brought other innovations such as electronic filling, electronic transfer of shares.”

According to her, other features include virtual meetings, not requiring an auditor or a company secretary for smaller companies.

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Jumoke noted that the new additions would reduce the regulatory burden and the cost of doing business for SMEs.

She said with the introduction of the electronic transfer of shares, there would be more liquidity in the market, adding that foreign investors will be attracted to the renewed ease of doing business in Africa’s most populous country.

She said to facilitate the new efforts to spur growth in the Nigerian business climate, there have been works on “small claims courts,” which are particular to different states.

The aide said the court would fix liquidated damages of N10m or below, depending on the state.

Jumoke further noted that Lagos and Kano had already keyed into the development with Edo State and most recently, Ogun State.

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