NEWS

Senate passes Repeal & Re-enactment of CAMA, states Benefits for SMEs

Published

6 years ago

May 16, 2018

The Nigerian Senate has passed the repeal and re-enactment of the Companies and Allied Matters Act (CAMA), saying it is the “biggest business reform bill in Nigeria in over 28 years.”

Speaking on the passage of the Bill on his Twitter page, Senate President Bukola Saraki said:

Today’s passage of the repeal and re-enactment of the Companies and Allied Matters Act (#CAMA) is a significant milestone in our legislative agenda. This is by far the most far-reaching legislation ever passed by any legislature in our country.

With the passage of #CAMA, we have now put in place a regulatory framework that will promote the ease of doing business in Nigeria and reduce all the unnecessary regulatory hurdles.

With the passage of #CAMA, we are reshaping Nigeria and we changing how Nigerians do business. I thank my colleagues for reaching another milestone on our legislative agenda that will positively impact the lives of millions of Nigerians.

#CAMA is a pro-business law. Its passage will show the world that ‘Nigeria is ready for business.’ By passing this Bill, the 8th Senate has shown that it has the audacity to move Nigerian businesses into a new era of development. pic.twitter.com/4ndZ56VW3a

— Bukola Saraki (@bukolasaraki) May 15, 2018

The Senate listed the benefits of the new bill on its Medium page, and they are as follows:

The high-points of the new CAMA includes;

• A one person company becomes reality in the Nigerian corporate regime. This allows new young and innovative start-ups the opportunity to operate as separate legal entity taking business risks without suffering the loss of personal assets.
• Nigerian joins countries with limited liability partnerships as a form of legal person providing more options.
• Cost of running a small company is reduced as there are no more requirements on small companies to have a company secretary or hold Annual General Meetings.
• The cost of registration is reduced by removing the requirement for statutory declaration of compliance;individuals can now register a company without legal assistance.
• Minimum share capital required for companies reduced to encourage more investments and allow small business thrive and operate as a legal entities.
• The E-registration and filling system further enhanced to ease doing business for SMEs and corporations.
• New regulations on corporate insolvency to revive ailing companies