Doing business in Nigeria just got easier!

CAMA 2020 – Doing business in Nigeria just got easier! Thanks to the Federal government of Nigeria. With signing into law of the new Companies and Allied Matters Act (CAMA) 2020, there has been the introduction of several measures to ensure that doing business becomes easier, especially for small entrepreneurs and businesses.

It has been said that the Small and Medium Enterprises (SME) and informal sector forms over 60 % of the operators of the Nigerian economy, it is, therefore, a very welcome development for government to remove the clogs in the wheel of these entities and individuals; enabling them to do more and encouraging enterprise among the citizens.

As part of this new development is the provision of a single-member company. This means that one person alone can now incorporate his own company without the need to get any other person involved if he does not wish to. This also means that the entrepreneur can combine the benefit of being the singular owner with those of being an incorporated company; not just a business name.

Another very interesting development is that registration of business names and incorporation of businesses can now be done by anyone, without requiring the service of a legal practitioner. As good as this is, it does not remove the need for necessary legal advice that will ensure the promoter of the business does it right. Understanding what to do in the registration process still requires that you talk to a legal practitioner for guidance through the process and to know the legal implications of the actions to be taken.

In a bid to help you gain a simple understanding of the new development in the business/corporate legal space, we have put together a simple highlight of the areas where changes have been made by the new CAMA. This is by no means exhaustive. There shall be subsequent publications on other areas covered by the law.

Author: Solape Adesuyi