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 ease of doing business ecosystem.
Dr Oduwole stated this during an Interview on TVC News earlier today.
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 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, the capital markets had created Special Purpose Vehicles for the new purpose of electronic transfer of shares which the CAMA enables, which would “deepen capital market options available”.
She added that Nigerians should look forward to other business regulatory reforms towards the end of the year as the Nigerian bar association is working with the Nigerian government and other stakeholders on business law guidelines.
She added that the Cost of Compliance Survey would be taken with the private sector as well a Substantial Home-grown Survey would give a current information on the business climate from private business stakeholders to the Executive branch of government.
Dr. Oduwole added that improving Nigeria’s ease of doing business is a marathon not a sprint, and would need continuous development along the years, citing Nigeria’s ease of doing business reforms which has made Nigeria ranked as top ten reformers in ease of doing business in the past 3 years.
She says that SMES are a priority for job creations as it contributes 48% of GDP and employee 85% of Nigerians. “Government spending can’t do it alone, as it only 10% of GDP”, she says, citing the benefits of PPP to job creation in the country and other business reforms which would help the private sector have an enabling business environment and create jobs.