Welcome the revised CAMA

Nigeria’s aspiration to improve the ease of doing business, which appeared to have been driven by the executive branch of government, has now received a significant boost from the legislature. The Senate on May 15 passed the revised CAMA, which when operational, will reform the business environment in many ways which are unprecedented. It is expected to improve on the reforms currently in place, by making business registration faster and more seamless.

Achieving the CAMA amendment could be attributed to the National Assembly Business Environment Roundtable (NASSBER) which was created as a platform for the legislature and the private sector to engage, deliberate and take action on a framework that will improve Nigeria’s business environment through a review of relevant legislations and provisions of the Constitution. It is a partnership between the National Assembly, Nigerian Economic Summit Group and Nigeria Bar Association’s Section on Business Law, supported by the defunct ENABLE II programme of the UK Department for International Development (UK-DfID). It is expected that this framework will support reforms designed to make Nigeria’s economy globally competitive, achieve inclusive growth and sustainability, create jobs, and cater to the wellbeing of Nigerians.

It therefore became imperative to have an effective legal framework of company law, which is a critical building block of a modern and business friendly economy. A genuinely modern and effective legal framework can promote enterprise, enhance competitiveness and stimulate investment. Conversely, an ineffective or outdated framework can inhibit productivity and growth and undermine investor confidence.

Nigeria ranks 145 out of 190 countries in the World Bank’s Ease of Doing Business ranking, which rates countries for the ease at which one can open, conduct and perhaps close down businesses. The WBDB Index offers a useful and measurable assessment of economies around the world; and also serves as a resource for private sector and other stakeholders interested in investing in Nigeria. One of the indicators the WBDB team measures is the relative ease or difficulty in establishing and running a business in Nigeria. In this regard, Nigeria is ranked on the Starting a Business indicator as 130 out of 190 economies and for the first time was also recognized as one of the top ten (10) most improved economies in the world.

This landmark reform by the Bukola Saraki-led Senate, coming 28 years after the passage of the original Companies and Allied Matters Act, will provide significant benefits to companies by reducing bureaucratic red tape and making it easier to comply with regulatory obligations.  Most of the changes are aimed at encouraging investments that will allow small businesses and startups thrive, lower costs and ease regulatory burdens.

The present administration has given a lot of attention to improving Nigeria’s ease of doing business. The government indicated its seriousness by establishing the Presidential Enabling Business Environment Council )PEBEC), chaired by vice president Yemi Osinbajo.  It is commendable that the legislature is now fully on board.

Before the executive and legislature roll out the drums to begin celebrations, they must realise the work isn’t complete yet. The House of Representatives need to also pass the bill and after assent by the President, there will be a sustained period of enlightenment campaign to secure the buy-in of all critical stakeholders in the business and investment community.