The Lagos Chamber of Commerce and Industry (LCCI) has called on President Muhammadu Buhari to promptly assent to the Companies and Allied Matters (CAM) Bill 2018, saying it has huge potential to catalyze the growth and transformation of Small and Medium Enterprises (SMEs) in the country.
Making the call in a statement, Director General, LCCI, Muda Yusuf, said the Companies and Allied Matters Act 1990 is the extant legislation governing business registration and related issues in Nigeria, noting however that many of the provisions of the 29-year-old legislation are not in tune with current realities of the business environment.
He said LCCI commends the National Assembly for having passed the bill to the President for assent, adding it is therefore a laudable move to make the legislation more contemporary and in alignment with the Ease of Doing Business agenda of the present administration.
Yusuf said: “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 SMEs in the economy can begin to reap the benefits of its provisions. The President’s assent to this bill would also position SMEs to contribute to the realization of the objectives of the Economic Recovery & Growth Plan (ERGP).”
The CAM bill 2018 will, among others, ensure the following changes: makes it possible for a company promoter to establish a private company with only one shareholder, review of the concept of Authorised 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, and;
Simplification of the processes for the registration of Private Company Limited by Guarantee.