On 7 August 2020, President Muhammadu Buhari signed the CAMA ACT into law setting an important landmark in the ease of doing business and registration for both business and nonprofits.
On Tuesday 15 May 2018, the Senate of the Federal Republic of Nigeria passed the Companies and Allied Matters Act, 1990(CAP C20, LFN 2004) Repeal and Re-enactment Bill, 2018 (“the bill”). The bill consolidates the proposed amendments from two related bills: Companies and Allied Matters Act CAP C20 LFN 2004(Amendment) Bill, 2016 and the Companies and Allied Matters Act CAP C20 LFN 2004 (Amendment) Bill, 2017. The new Bill has now been renamed from “Part C to the Companies and Allied Matters (Part C of CAMA) to Part F to the Companies and Allied Matters (Part F of CAMA)”.
The Bill aims to establish an efficient way of registering an organisation with ease, minimize the compliance burden of small and medium enterprises (SMEs) and bringing Nigeria’s foremost commercial law in line with international best practices.
When transmitted to the President in May 2019, he withheld his assent based on sections 26 (5) which took away the powers of the Attorney General to approve the registration of Companies Limited by Guarantee. On November 28th, 2018, the President wrote to the National Assembly seeking amendments to the CAMA Bill as passed by the 8th Assembly. Specifically, the letter reads:
Pursuant to Section 58 of the Constitution of the Federal Republic of Nigeria 1999 as amended, I hereby forward the Companies and Allied Matters and other related matters Bill 2019 for consideration and passage into law by the Senate.
“The Senate may wish to note that in this bill, Section 26(5) of the extant companies and Allied Matters Act has been amended to:
a. Preserve the powers of the Attorney-General of the Federation to approve the registration of companies limited by guarantee and
b. Reflect the ease of doing business principles in a veto order (1) of 2017 on the promotion of transparency and efficiency in the business environment.
While I look forward to the usual expeditious consideration and passage of this bill, please accept the assurances of my highest consideration”.
In March 2020, the National Assembly passed the CAMA bill based on the President’s requests in his letter above.
Please download the CAMA 2020 Act here
Please download the Part F of CAMA document here