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The special Adviser to the President on Ease of Doing Business, Dr Jumoke Oduwole, said the new Companies and Allied Matters Act 2020 , CAMA, would reduce the regulatory burden on businesses in Nigerian and improve the ease of doing business ecosystem.
The Corporate Affairs Commission, CAC, through its Registrar General/CEO, Alhaji Garba Abubakar, had earlier told reporters that CAMA 2020 will benefit Nigerian business owners through regulation regarding transactions of shares and many others. According to him, the former law was not extensive enough for the business environment.
Dr. Oduwole said the changes in the new CAMA were well received by the business leaders. Some of the new regulations include: new electronic filing of company shares which was pushed by the SEC, Single shareholder structure for businesses, SMEs don’t require the services of auditor, Virtual meetings and others which would make it easier to do business in Nigeria.
On the Impact of reduced filling charges to the market, she said that the FG is expecting a 65% drop of costs of registering charges, which would widen the capital net as creditors and other stakeholders would “ know what’s available”.
For improvements in Foreign Direct Investments into the country, she said that the new electronic transfer of shares would offer more liquidity to Nigeria’s equity and debt markets, citing that the SEC needed the passing of the CAMA as provisions for new SEC guidelines for the equity and debt markets.
She also said that the capital markets had created a special purpose of electronic transfer of shares which the CAMA enables and could deepen capital market options. Dr Olajumoke also added that Nigerians should look forward to other business regulatory reforms as the Nigerian bar Association would be working with the Federal government and other stakeholders on business law guidelines at the end of the year.
Dr oduwole continued that improving the nation’s ease of doing business would need continuous development along the years as SMES are a priority for job creations that contributes 48% of GDP and employs 85% of Nigerians.
“Government funds cannot do it alone, as it only covers 10% of the GDP. Also, the benefits of PPP to job creation and other business reforms would help the private sector own an enabling business environment and create jobs, seeing that Nigeria has been ranked top ten reformers in ease of doing business in the past three years.”
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