The Lagos Chamber of Commerce and Industry (LCCI) has called on President Muhammadu Buhari to sign the Companies and Allied Matters (CAM) bill 2018 in order to boost Micro, Small and Medium Enterprises (MSMEs) growth.
In a statement by the director-general of LCCI, Muda Yusuf to newsmen, the chamber commended the National Assembly for passing the bill in 2018, .
The LCCI urged the President to expeditiously assent to the bill in view of its immense potential impact in catalyzing the growth and transformation of the MSMEs in the Nigerian economy.
Yusuf explained that the Companies and Allied Matters Act 1990 is the extant legislation governing business registration and related issues in the economy.
According to him, the Act is a 29 year old legislation governing businesses in 2019. Many of its provisions are obviously not in tune with current realities of the business environment.
“The CAM Bill 2018 is therefore a laudable move to make the legislation more contemporary and also bringing it in alignment with the Ease of Doing Business agenda of the present administration.”
He stated that the bill will make it possible for a company promoter to establish a private company with only one shareholder, explaining that it review the concept of Authorized 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.
Other changes the bill will bring, according to LCCI, it will simplify the processes for the registration of Private Company Limited by Guarantee, broadening the scope for technology applications in compliance processes as the bill has provisions for electronic filing; electronic share transfer and e-meetings for private companies and also will make the processes smarter and cost effective.
“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, LCCI requested that the bill be expeditiously signed so that the SMEs in the economy can begin to reap the benefits of its provisions.
Yusuf noted that 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).