Nigerian companies law faces capacity constraints

Significance

The amendment officially seeks to improve the ease of doing business by establishing a more efficient means of regulating businesses and minimising the compliance burden for small and medium-sized enterprises (SMEs). However, some interest and civil society groups, most notably religious-based organisations, have decried provisions of the new law.

Impacts

• Besides SERAP, there is the possibility of civil actions against the CAC and the presidency by other civil society groups.
• The new act could help improve Nigeria’s ranking on the World Bank’s ‘Ease of Doing Business’ index.
• Business oversight bodies could voice their opposition to the inclusion of corporate governance provisions within the CAMA 2020.