NNNGO Newsletter on Understanding the Companies and Allied Matters Act – June, 2019

 

In a nonprofit organisation, managing a bank account can be simple or complex depending on the size of the organisation, the net worth and assets possessed by the organisation.

 

By law, a nonprofit organisation is mandated to have a bank account from which all financial transactions relating to the organisation would be made. This bank account is strictly for the organisation and separate from the personal account of the founder or staff of the organisation. This is particularly important as it is part of transparency and accountability processes towards the financial growth of the organisation.

 

An incorporated trustee runs the risk of being dissolved if it is observed by a bank that the organisation operates a dormant account as defined under the relevant banking regulation. The length of time before a bank account goes inactive in Nigeria is 12 months and is classified dormant if it remains inactive for another 12 months; the bank then notifies the Corporate Affairs Commission (CAC) to take further actions requesting that the said nonprofit organisation provide evidence of its activities with an ultimatum of 15 days.

 

Failure to respond satisfactorily within 15 days of request may lead to the dissolving of the organisation by the commission. Before accounts are reclassified, the banking institution will notify said organisation, 3 months before an account is reclassified as dormant.

 

Dormant accounts are evidence of no activity for a long period of time. A dormant bank account signals to regulators and the public that the organisation is no longer in existence. Nonprofits not operating their bank account for up to 5 years at a stretch may send a signal to CAC processes for revocation of registration.

 

To safeguard funds in the account where an organisation has not responded in 15 days, the law provides for the money to be declared/or brought to the attention of the CAC who then sets up processes of transferring the money to other nonprofits with similar purpose upon the approval of the minister.

 

It is advisable that a nonprofit organisation with a dormant account sends a notification stating the reason(s) for having a dormant account to the CAC to avoid the assumption that the nonprofit organisation is no longer in operation which could further lead to “de-listing” of the organisation from the list of registered organisations with the commission.

 

This newsletter is supported by the Commonwealth Foundation. However, the ideas and opinions presented in this document do not necessarily represent those of Commonwealth Foundation, NNNGO or any other organisations mentioned. 

NNNGO Newsletter on Understanding the Companies and Allied Matters Act – June, 2019

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In a nonprofit organisation, managing a bank account can be simple or complex depending on the size of the organisation, the net worth and assets possessed by the organisation.

 

By law, a nonprofit organisation is mandated to have a bank account from which all financial transactions relating to the organisation would be made. This bank account is strictly for the organisation and separate from the personal account of the founder or staff of the organisation. This is particularly important as it is part of transparency and accountability processes towards the financial growth of the organisation.

 

An incorporated trustee runs the risk of being dissolved if it is observed by a bank that the organisation operates a dormant account as defined under the relevant banking regulation. The length of time before a bank account goes inactive in Nigeria is 12 months and is classified dormant if it remains inactive for another 12 months; the bank then notifies the Corporate Affairs Commission (CAC) to take further actions requesting that the said nonprofit organisation provide evidence of its activities with an ultimatum of 15 days.

 

Failure to respond satisfactorily within 15 days of request may lead to the dissolving of the organisation by the commission. Before accounts are reclassified, the banking institution will notify said organisation, 3 months before an account is reclassified as dormant.

 

Dormant accounts are evidence of no activity for a long period of time. A dormant bank account signals to regulators and the public that the organisation is no longer in existence. Nonprofits not operating their bank account for up to 5 years at a stretch may send a signal to CAC processes for revocation of registration.

 

To safeguard funds in the account where an organisation has not responded in 15 days, the law provides for the money to be declared/or brought to the attention of the CAC who then sets up processes of transferring the money to other nonprofits with similar purpose upon the approval of the minister.

 

It is advisable that a nonprofit organisation with a dormant account sends a notification stating the reason(s) for having a dormant account to the CAC to avoid the assumption that the nonprofit organisation is no longer in operation which could further lead to “de-listing” of the organisation from the list of registered organisations with the commission.

 

This newsletter is supported by the Commonwealth Foundation. However, the ideas and opinions presented in this document do not necessarily represent those of Commonwealth Foundation, NNNGO or any other organisations mentioned. 

Disadvantage to Advantage

A foolish nation ignores them at its own peril. They are street children. They roam the garbage-filled street of even the developed nations and abound in thousands in most cities of many third world countries. They represent the face of hunger, insecurity and social neglect. Nigeria is no different; they roam in their thousands, portraying the decadent social order.

 

Nigerians are more aware than ever, tragedies faced by children on the streets; national and local media forever carry daily reports of children who have been beaten, imprisoned, starved, burned, sexually and emotionally abused. Globally, there are an estimated 100 million children living on the streets today.

 

There are no known statistics for street children in Nigeria, however, it was estimated that children of under 18 years of age made up nearly 48% of the estimated country’s population of 120 million in 1996 (World Bank). This estimate remains undiminished with the passage of years, a rather appalling fact.

 

Humanity is however slowly awakening to a fact that even if the authority does not wake up to its duty then those who have made it a mandate as a social responsibility will arise to the call to serve.

 

From planning to monitoring through long term training and mentorship of these very delicate children, Fair Life Africa Foundation, established in Jan 2011 with the sole aim of operating through the establishment of social initiatives to alleviate oppression, envisions a just and equal society by empowering people for a fairer life.

 

Mrs. Uforma Emerhor, the founder of FLA, has very strong unshaken faith in children, she believes that they are gifts from God and as such must be given utmost care rather than abandoned.

 

The Executive Director elaborated on Care Continuity Challenge, an initiative meant to support children, who had made the streets home, to be reconciled with their families.  The three names represent three stages. Care is about reaching out and showing love by providing basic necessities; Continuity is about securing stability for each child, through reconciliation; while Challenge addresses the long term needs of the child, who cannot be reconciled.

 

The second initiative, she said is a Disadvantage to Advantage (D2A). The focus is taken away from rehabilitation to enhancement, as children between ages 9-17 are targeted with the aim of adopting them until they become mature and independent to stand unsupported.

 

Announcing FLA’s long term plans, with sheer delight Mrs. Emerhor believes that the foundation in another five years would have made more impacts on 150 children by constructing charity shops, leasing three workshops to vocational trainers who will provide free services to the children and constructing poultry farms, an added vocation, which would serve as a source of food and income for the children.

 

When asked if NGOs can completely be independent of the government, Mrs. Emerhor said “I don’t believe we can or should be completely independent of a ‘good government’!  That is, if the government is doing what it should, it should seek to be involved in and support our efforts in building an equal and just society. A government that leaves us to our own devices and depends on us to do what they should be championing is not doing enough, and in such a climate, it does make sense to work without their intervention, because that would be the only and best way to operate!” She concluded.

Profiling Elijah’s Widows and Orphans Mission International on International Widows’ Day.

Elijah’s Widows and Orphans Mission International (EWOMI) was established in 2014, to alleviate the sufferings of widows, empower them to sustain their families and provide a better life for their children. 

 

The mission started as a vision to work towards supporting government in the bid to put an end to extreme poverty, abuse, rejection and exploitation of the underprivileged in the society unto a sustainable life of comfort while motivating orphans to attain a greater future through skill acquisitions and qualitative education.

 

Elijah’s Widows and Orphans Mission International (EWOMI) is stepping in to the world of widows and their children, providing succor for them and championing their case, creating a positive outcome for them and their families through social and economic empowerment.

 

EWOMI currently provides vocational skills and financial assistance which include food, clothing and shelter to many widows and orphans in Abuja; a support which will help them become more productive members of the society.

 

For the widows who are often left behind, EWOMI calls on government for stronger legislation on the commemoration of International Widows Day.

Abandoned But Not Alone

Widowhood represents social death in several communities; the loss, a devastating blow – an understatement.

 

The death of a husband and father signals loss of stability and status for many families in Nigeria. In many households, the male figure often stands as a breadwinner and in cases where the wives do not have a source of their own, the husband would then be the sole provider such that when he dies, the family often feels something way beyond bereavement. His death robs his family of their financial and social standing and thus they suffer the most extreme forms of poverty, discrimination, stigma, physical, sexual and mental abuse.

 

For years, the term “widowhood” was associated to elderly retired females who had lost their husbands at some point in their lives and had decided to live out their golden years alone. Today, widowhood stares at us in a larger proportion as younger women are now becoming widows.

 

Statistics show that higher mortality rate among middle-aged men especially in comparison with lower mortality rate among their female counterparts, a prevalence of younger wives than husbands and so on are some of the reasons for the high number of widowhood among younger women today. Their children face horrors such as child marriage, illiteracy, forced labour, human trafficking, homelessness and sexual abuse.

 

The 2015 World Widows Report by the Loomba Foundation reveals an estimation of 258 million widows with 584.6 million offspring around the world and nearly one in ten live in extreme poverty. Together with their children, they are malnourished, exposed to diseases and subjected to extreme forms of deprivation. They experience targeted murder, rape, prostitution, forced marriage, property theft, eviction, social isolation and physical abuse. Another estimate reveals that about 1.5 million widows’ children in the world die before their fifth birthday.

 

To give special recognition to the situation of widows world over, the United Nations General Assembly thus declared June 23rd International Widows’ Day. The day effects actions to raise awareness on and help widows and their children who suffer through poverty, illiteracy, HIV/AIDS, conflict and social injustice- highlighting the “Invisible Issues faced by these “Invisible women” in our society. 

 

Widowhood practices have attracted global attention on violence against women. Sufficient evidence suggests that widows are severely affected financially, socially, sexually and psychologically.

 

Abuse of widows and their children constitutes one of the most serious violations of human rights and obstacles to development. Today, we hear that millions of widows endure all of these hardships for the sake of their children, just so they can keep them.

 

For their children, they want to do the unbelievable, the seemingly unattainable. This is the only thing they have (their dividend, their treasure) and so they want to hold on to them, providing them with the most basic needs, however little or insufficient even if they are far cry from luxury.

 

According to World Bank Group’s Women, Business and the Law 2016 Report, out of 173 countries, 90% have at least one law limiting women’s economic participation, including constraints on their ability to inherit or own land. Unmarried women live with their parents; married women belong to their husbands. Then we wonder who exactly protects the widows?

 

In Africa, widows are victims of all kinds of harassment and discrimination. After losing their husbands, widows may suffer double blow – (1) financial hardship and (2) accusation of witchcraft. While in the process, they are denied access to their husbands’ properties. Some callous culture and tradition even go all the way, demanding the widow to drink the water used in washing the dead husband’s body or to have sex with an in-law or a total stranger. It is that bad!

 

It is bad to the extent that women in several Nigerian communities dread the experience of widowhood. Research reveals that about 15 million widows in Nigeria are in dire need of every form of assistance, another report reveals that the number of widows in the North-East had sky-rocketed from 10,000 in 2013 to a higher figure due to insurgency.

 

Several widows find themselves homeless as their husband’s families may neglect them, confiscate properties owned by their late husbands because many have little or no education or skills , they suffer with their children.

 

In the bid to fend for themselves and their children, they face humiliation. They beg for food. Yes! It is that bad. Widows and their children sometimes go without good meals for days.

 

By all means they want to put food on their table, they want to pay their children’s school fees, they want to address their health issues, they want to maintain the roof over their heads and while at it, they meet countless obstacles. They are accused of witchcraft; they are also sometimes tagged “husband snatchers” even by their so-called close friends.

 

As a nation, we have a mandate to ensure widows are empowered and protected from abuse, from stigmatization, from humiliation and more so from financial hardship. With women becoming more educated, economically independent and aware of their rights particularly in the 21st century, they become more immune to psychological stress and other extreme forms society make them go through. They are beginning to stand up for their rights by saying no to barbaric practices.

 

Providentially, reports reveal that The Nigerian Government already signed into law Violence Against Persons (Prohibition) (VAPP) Act, an act which is meant to protect citizens against various forms of violence, including negative practices against widows.

 

To this end, former UN Secretary General, Ban Ki-moon urges the world “We must erase the social stigmatization and economic deprivation that confronts widows; eliminate their high risk of sexual abuse and exploitation; and remove the barriers to resources and economic opportunities that constrain their future.”

Domestic and Sexual Violence Response Team – RAPE! A SIGNIFICANT DISTURBANCE TO BE LAYED IN STATE

In the world of fiction, rapists are evil, nasty and scruffy-looking, they lurk in bushes or the shadows of the parking garage ready to fall on their prey and pray the would-be victim envisages this speedily and gets rescued promptly prior the vicious attack.

 

Oftentimes actual rapes leave forever scars on victims, totally rubbing them of their self-worth and making them feel less important amongst their families and in the society.

 

The recent upsurge in the cases of rape, especially against girls, women and old women, has become worrisome for not only parents but policymakers as well.

 

According to an online report, 80 – 90% of rapes are never reported. In many parts of the world especially in Africa including Nigeria, it is most difficult to estimate rape occurrences as it is rarely reported due to the extreme social stigma which accompanies the fear of being disowned by families.

 

Rape, according to Wikipedia is “a type of sexual assault usually involving sexual intercourse, which is initiated by one or more persons against another person without the person’s consent. The act may be carried out by physical force or coercion.

 

Nigeria, under the Criminal Code, says the punishment for rape is life imprisonment, unfortunately, it is yet to be enacted.

 

Several inactions to bringing rapists to book spurred the kickstart of Walk Against Rape (WAR) a foundation based in Lagos, established in 2010 by Esther Ijewere-Kalejaiye. The foundation was designed to give a voice to sexually abused persons especially women and children, readily giving succor, WAR also will eradicate the scourge of rape in Nigeria where its number is reportedly on an alarming rise.

 

The National Coordinator envisions channeling the foundation as a tool and catalyst to informing the society about the soaring scourge of rape and encouraging victims to speak out such that stigmatization might finally go into extinction.

 

According to Mrs. Ijewere-Kalejaiye, she said that the yearly editions of Walk Against Rape constantly receive ovations from the Lagos State Ministry of Women Affairs and Poverty Alleviation. She stated that the Lagos State Government is ready to make more Help Centers across the state available, preferably in all Local Government Areas.

 

Meanwhile, Walk Against Rape Campaign which holds every year, she stressed is a special demonstration to lending a voice to sexually abused persons (particularly women and children), and supporting the course of bringing an end to RAPE in Nigeria.

 

She emphasized the need for victims to open up and seek help since the experience leaves them with the feelings of being used, miserable, ashamed and utterly frustrated.

 

The negative stigma associated with rape victims prevents many from seeking medical attention. Rape victims are exposed to Sexually Transmitted Diseases (STDs), unwanted pregnancy and genital injuries. A thorough medical evaluation is necessary in all cases of sexual assault even if victims have no apparent injuries, she concluded.

 

On impacts and achievements of the foundation, Mrs. Ijewere-Kalejaiye said a three month sensitization workshop: College Acquaintance Rape Education (C.A.R.E) in partnership with the Lagos State Government and the Domestic and Sexual Violence Response Team (DSVRT) has been organized for young people of Secondary and Primary school age which kicked off on the 18th of February 2015 was meant to educate, sensitize and encourage girls to speak upon all issues related to rape.

 

Mrs. Ijewere-Kalejaiye, therefore, urged the government not to trivialize on the crime but to come out with appropriate punishment to offenders, which would serve as a deterrent to would-be offenders and in turn, serve as succor to victims.

Citizens’ Empowerment, Democratic Ownership and Participation (Istanbul Principle III) June,2019

Article 21 of the Universal Declaration of Human Rights (1948) states that “everyone has the right to take part in the government of his country, directly or through freely chosen representatives”. Thus, the onus lies on citizens to participate in the election process (by voting and campaigning for candidates) and holding elected officials accountable, in order to actively participate in a democratic society.

For democracy to be representative, the citizenry needs to be informed and politically active –Citizen participation in democracy provides private individuals an opportunity to influence public decisions and to be a component of the democratic decision-making process. Such a relationship between the state and her citizens is enhanced through participation and accountability to foster democratic ownership of public resources.

Poverty is more than just a lack of resources; it is a lack of empowerment – Hence, CSOs need to champion the cause of social, economic and political empowerment of the citizenry. They have a role to play in promoting grassroots participation in politics through multi-stakeholder dialogue, capacity development/ public enlightenment campaigns and citizens mobilization. This will help amplify the voices of citizens to hold the state institutions and service providers to account.

CSOs bridge the gap between the state and individual citizens – Overtime, NGOs have played a role in advocacy and empowerment. They have been actively intervening in democracy-building especially in mobilizing and supporting social movements. Also, they play a pivotal role in building capacities of citizens in raising national issues.

CSOs are effective as development actors when they support citizen empowerment, democratic ownership and participation through creating spaces for engagement to influence planning, budgeting and policy making processes for inclusive grassroots participation.

Vitamin Angels – FUTURE SIGHTED

Until the mid-1930s, when the first commercial yeast-extract vitamin B complex and semi-synthetic vitamin C supplement tablets were sold, vitamins were obtained solely through food intake and changes in diet (which, for example, could occur during a particular growing season) usually greatly altered by the types and amounts of vitamins ingested. However, vitamins have been produced as commodity chemicals and made widely available as inexpensive semi synthetic and synthetic-source multivitamin dietary, food supplements and additives.

 

The term vitamin is derived from the words vital and amine; vitamins are organic compounds that are needed in small quantities to sustain life. Today, thirteen vitamins are universally recognized.

 

Approximately 250,000 to 500,000 malnourished children in the developing world go blind each year from deficiency of vitamin A, half of whom approximately die within a year of becoming blind with the highest prevalence in South East Asia and Africa. VITAMIN A Deficiency (VAD) is thus estimated to affect approximately one-third of children under the age of five around the world and estimated to claim the lives of 670,000 children under five annually. According to the World Health Organization (WHO), VAD is under control in the United States, but in developing countries, VAD remains a significant concern.

 

According to Nigeria’s statistics provided by the World Health Organization, 29 percent of preschool-age children are vitamin A deficient which has made WHO classify VAD as a severe public health problem in Nigeria. Vitamin A deficiency (VAD)a lack of vitamin A in humans is critical to achieving the Millennium Development Goal 4: To reduce the child mortality rate. Although more than 33 million children received VAD during the biannual Maternal Neonatal Child Healthcare (MNCH) week campaign organized by Federal, State, and Local governments. To date, there are several millions of children in need of vitamin A in Nigeria.

 

Obeying the clarion call to children’s plight, Vitamin Angels go to the hard to reach communities in Nigeria, giving in-kind grants of Vitamin A supplements and chewable albendazole to qualified Non-Governmental Organizations who deploy micronutrients through existing health and community based programs to children less than 5 years of age who are at risk of vitamin A deficiency (VAD).

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Abiola Akanni, Nigeria’s programme manager of Vitamin Angels said that Vitamin Angels currently works with 45 countries with a network of over 300 NGOs to deliver vitamin A to more than 30,000,000 children less than five years of age.

 

The deficiency which is a major contributing cause of sickness and death among children under five years of age, aside from the common causes as measles, diarrhea, is the Nyctalopia (night blindness) which is one of the first signs of VAD. A simple cost-effective dose of vitamin A every six months alleviates VAD and reduces mortality and morbidity by 24% in children under five years.

 

In 2014, Vitamin Angels gave grants to support grassroots NGOs in alleviating micronutrient deficiency in Nigeria, supporting health clinics, eye hospitals and orphanages for the purpose of incorporating sustainable micronutrient distribution programme to children under the ages of five who reside in hard to reach communities.

 

Vitamin Angels make vitamin A and chewable deworming tablets accessible to young children under 60 months of age and children who were missed by health providers.

NNNGO Newsletter on Understanding the Companies and Allied Matters Act – May, 2019

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The new amendment to the Part F of the Companies and Allied Matters Act (CAMA) supports the suspension of an organisation’s board of trustees, in cases where there is perpetration of misconduct and fraudulent management of organisational affairs.      

 

The suspension of trustees can only be made legal after a petition has been made to a court of law and evidences presented to the court by one-fifth of the organisation’s members. The Corporate Affairs Commission (CAC) then enforces the court’s judgment of suspension after the individuals have been found guilty.  

 

The law states that in such cases, an interim manager could be appointed to manage the affairs of the organisation, pending when all matters are resolved. It becomes necessary to appoint an interim manager to ensure the protection of the organisation’s interest and physical properties of a nonprofit organisation. In these cases, the powers and duties of the board of trustees shall be transferred and performed by the interim manager to the exclusion of the trustees under the supervision of the CAC.  

 

It is important to note that the law does not tolerate deliberate and unsubstantiated accusations and petitions of misconduct or fraudulent dealings by Nonprofits. Nonprofits are advised to avoid disputes and issues that can bring discord within their organisation and the wider nonprofit community at large. 

 

To achieve the avoidance of organisational discord, it is advised that nonprofit organisations ensure that their operations and financial management activities are guided by the values of ethics and culture of transparency and accountability. 

 

This newsletter is supported by the Commonwealth Foundation. However, the ideas and opinions presented in this document do not necessarily represent those of Commonwealth Foundation, NNNGO or any other organisations mentioned. 

NNNGO Newsletter on Understanding the Companies and Allied Matters Act – May, 2019

The new amendment to the Part F of the Companies and Allied Matters Act (CAMA) supports the suspension of an organisation’s board of trustees, in cases where there is perpetration of misconduct and fraudulent management of organisational affairs.

 

The suspension of trustees can only be made legal after a petition has been made to a court of law and evidences presented to the court by one-fifth of the organisation’s members. The Corporate Affairs Commission (CAC) then enforces the court’s judgment of suspension after the individuals have been found guilty.

 

The law states that in such cases, an interim manager could be appointed to manage the affairs of the organisation, pending when all matters are resolved. It becomes necessary to appoint an interim manager to ensure the protection of the organisation’s interest and physical properties of a nonprofit organisation. In these cases, the powers and duties of the board of trustees shall be transferred and performed by the interim manager to the exclusion of the trustees under the supervision of the CAC.

 

It is important to note that the law does not tolerate deliberate and unsubstantiated accusations and petitions of misconduct or fraudulent dealings by Nonprofits. Nonprofits are advised to avoid disputes and issues that can bring discord within their organisation and the wider nonprofit community at large.

 

To achieve the avoidance of organisational discord, it is advised that nonprofit organisations ensure that their operations and financial management activities are guided by the values of ethics and culture of transparency and accountability.

 

This newsletter is supported by the Commonwealth Foundation. However, the ideas and opinions presented in this document do not necessarily represent those of Commonwealth Foundation, NNNGO or any other organisations mentioned.

The Nigeria Network of NGOs (NNNGO) is the first generic membership body for civil society organisations in Nigeria that facilitates effective advocacy on issues of poverty and other developmental issues. Established in 1992, NNNGO represents over 3495 organisations ranging from small groups working

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