The Senate on Tuesday passed the Corporate and Allied Matters Act amendment bill, 2020, following a clause-by-clause consideration of the bill in a committee of the whole.
The bill sponsored by the Senate Leader, Senator Yahaya Abdullahi (APC – Kebbi North), when signed into law by President Muhammadu Buhari, is expected to address aspects that will boost investment in Nigeria.
It also seeks to provide an efficient means of regulating businesses, minimizing the compliance burden of small and medium enterprises (SMEs), enhance transparency and shareholder engagement, and promote a friendly business climate in Nigeria.
According to Senator Abdullahi, the nation’s business landscape will be reorganized and liberated from the heavy constraints of several provisions in the Companies and Allied Matters Act 1990, responsible for obstructing modern business practices in the light of national and global business reforms.
The bill will also address the seeming stagnation and primitive methods of doing business in Nigeria, essentially to conform with international best practice, while promoting ease of doing business.
The introduction of model netting provisions in the Bill as a means of mitigating credit risks, according to Abdullahi, would promote financial stability and investor confidence in the Nigerian Financial Sector, and increase investor confidence in the Nigerian Financial Sector as well as all sectors of the economy.
Similarly, the economic impact of the Bill is expected to ensure more business-friendly regulation for Micro, Small and Medium Enterprises (MSMEs).
The amendment to CAMA is also expected to potentially increase activities of MSMEs, with the overall effect of growing the Nigerian economy in the process, providing more jobs and guaranteeing economic stability.
According to Senator Abdullahi, the nation’s business landscape will be reorganized and liberated from the heavy constraints of several provisions in the Companies and Allied Matters Act 1990, responsible for obstructing modern business practices in the light of national and global business reforms.
Also on Tuesday, the Senate considered the Nigerian Airspace Management Agency Bill, 2020, also sponsored by the Senate Leader, was initially enacted as a decree of the military government in 1999.
According to the lawmaker, the Act took effect on May 26, 1999, and has remained in existence for over 20 years without any review or amendment.
“Since the establishment of the agency under the Act, significant changes and developments have taken place in the industry that necessitates review and amendment of the Act so as to bring the provisions up-to-date with the operational requirements of the Agency and dictates of the aviation industry,” the lawmaker said.
“Also, the original text of NAMA Act as passed into law in 1999 had numerous misprints and errors that have resulted in ambiguities in certain provisions of the Act,” Abdullahi added.
The bill which scaled second reading on the floor was referred by the Senate President, Ahmad Lawan, to the Committee on Aviation for further legislative work.