THE Lagos Chamber of Commerce and Industry [LCCI] has called on
President Muhammadu Buhari to expeditiously assent to the Companies and Allied Matters [CAM] Bill 2018 in view of its immense potential impact in catalyzing the growth and transformation of the Micro, Small and Medium Enterprises (MSMEs) in the Nigerian economy.
Muda Yusuf, Director – General of LCCI, said the Chamber commends the National Assembly for having passed the Bill to Mr. President for assent.
The LCCI urges the President to expeditiously assent to the bill in view of its immense potential impact in catalyzing the growth and transformation of the MSMEs in the Nigerian economy.
The Companies and Allied Matters Act 1990 is the extant legislation governing business registration and related issues in the economy.
The Act is a twenty-nine year old legislation governing businesses in 2019.
Many of its provisions are obviously not in tune with current realities of the business environment.
The CAM Bill 2018 is therefore a laudable move to make the legislation more contemporary and also bringing it in alignment with the Ease of Doing Business Agenda of the present administration.
The bill will ensure the following changes, among others:
• Makes it possible for a company promoter to establish a private company with only one shareholder.
• Review of the concept of Authorized Share Capital to be replaced with Minimum Share Capital, thus saving the promoters the trouble of having to pay for shares not needed at a specific time.
• Simplification of the processes for the registration of Private Company Limited by Guarantee.
• Broadening the scope for technology applications in compliance processes. CAM Bill 2018 has provisions for electronic filing; electronic share transfer and e-meetings for private companies. This would make the processes smarter and cost effective.
The Bill when signed into law, will reduce the cost of doing business, especially for small businesses; boost the growth of SMEs; promote economic inclusion, boost job creation by small businesses, and encourage informal sector players to relocate to the formal sector.
In the light of the huge potential benefits of this law, we request that the bill be expeditiously signed so that the SMEs in the economy can begin to reap the benefits of its provisions. The Presidents assent to this bill would also position the SMEs in the economy to contribute to the realization of the objectives of the Economic Recovery & Growth Plan (ERGP).