Lagos Chamber of Commerce and Industry (LCCI) is urging President Muhammadu Buhari to assent to the Companies and Allied Matters [CAM] Bill 2018 in order to catalyse the growth of micro, small and medium enterprises (MSMEs).
The chamber says the CAMA Bill 2018 is a laudable move to make a 29-year-old legislation more contemporary and bring it in tune with the ease of doing business agenda of the present administration.
Muda Yusuf, director-general, LCCI, in a statement sent to BusinessDay, says the bill, when signed into law, will reduce the cost of doing business, especially for small businesses, while boosting their growth and promoting economic inclusion.
He says it is capable of boosting the number of jobs created by small businesses while encouraging informal sector players to move into the formal sector.
The CAMA has been in operation since 1990, but concerns by the private sector have forced amendments to the bill as many of its provisions are not in tune with current business realities. Having been passed by the National Assembly, it is on the table of President Buhari, waiting for assent.
“The LCCI urges the president to expeditiously assent to the bill in view of its immense potential impact in catalysing the growth and transformation of the MSMEs in the Nigerian economy,” he says.
He believes that the bill will make it possible for a company promoter to establish a private company with only one shareholder and simplify the processes for the registration of Private Company Limited by Guarantee.
It will 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, he explains.
“It will broaden the scope for technology applications in compliance processes. CAM Bill 2018 has provisions for electronic filing, electronic share transfer and e-meetings for private companies. This would make the processes smarter and cost effective,” he says.
“In the light of the huge potential benefits of this law, we request that the bill be expeditiously signed so that the SMEs in the economy can begin to reap the benefits of its provisions. The president’s assent to this bill would also position the SMEs in the economy to contribute to the realisation of the objectives of the Economic Recovery & Growth Plan (ERGP).”
