Companies and Allied Matters Act, 2020

The Companies and Allied Matters Act, 2020 (CAMA 2020) is a Nigerian federal legislation that governs the establishment and management of companies in Nigeria. It supersedes and replaces the Companies and Allied Matters Act, 2004, which was itself an update of the Companies Act of 1968. The CAMA 2020 is the most substantial legal reform of the Nigerian corporate sector in over three decades.

Background
The CAMA 2020 is the outcome of a lengthy and comprehensive reform process that started in 2004, when the Nigerian government set up a committee to review the CAMA 1990 (which was based on the UK Companies Act of 1948) and suggest amendments to align it with global trends and best practices. The committee delivered its report in 2008, and a draft bill was prepared and submitted to the Minister of Justice and Attorney-General of the Federation in 2010. However, the bill encountered several legislative obstacles and delays, and was not passed until 2018, when it was sent to the President for assent. The President, however, withheld his assent to the bill, pointing out some drafting and legal errors. The National Assembly then amended the bill and passed it again in 2019, and sent it to the President in March 2020. The President finally gave his approval to the bill on 7 August 2020, making it an Act of the National Assembly.

The CAMA 2020 has been widely commended by various stakeholders, including the Nigerian Bar Association, the Institute of Chartered Accountants of Nigeria, the Nigerian Economic Summit Group, and the International Finance Corporation, as a landmark reform that will improve the ease of doing business, attract foreign investment, and foster economic growth in Nigeria.

However, the CAMA 2020 has also faced some criticism and controversy, especially from some religious groups and civil society organisations, who have expressed concerns over some of its provisions, such as the regulation of non-governmental organisations, the suspension of trustees, and the merger of incorporated trustees. Some of these groups have called for the amendment or repeal of the CAMA 2020, or have threatened to challenge it in court.