Doing Business in Nigeria | |
Doing Business in Nigeria | |
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Wednesday, March 27, 2019 / 05:30PM / Proshare Business & WebTV
Introduction
Laws are like catalysts, they ignite action. Local and foreign investors alike are waiting anxiously to see Nigeria's President Sign the National Assembly-passed CAM Bill 2018 into law to activate growth and kick start expansion in the fledgling MSME subsector.
Not only will the CAM Bill support the transformation of existing businesses, it will also encourage the emergence of fresh enterprises as game changing pioneers of new technologies, services and products. This in turn will achieve a number of goals:
As part of its advocacy for global corporate best business practices the Nigerian business community has made an urgent call to the national assembly urging it to complete the legislative process regarding the CAM Bill 2018 and transmit same to the Presidency for accent into law. The business community recognizes the commitment of the 8th National Assembly in getting the nation to this stage and wish to emphasize the dual responsibility and burden of ensuring that the Bill becomes law under this legislative term, given its journey to this point; and the international dimension of the nation's commitment to executing reforms.
The business community notes that the accountability requirement of the World Bank target as well as the Federal Government's PEBEC target compels the nation to act swiftly in passing and signing this Bill in the interest of growth, development and employment.
One of the distinguishing features of dynamic and disruptive developments in some of the world's fastest growing economies is the scale and rate of reforms carried out in their business environments.
The rate of growth in an economy is usually proportional to the rate of reforms carried out in the country.
Taking Georgia as Case Study
Georgia is an interesting example of a nation that is today a reference point in the "Ease of Doing Business" reforms rankings. From a low performer, Georgia is now one of the top 10 countries in the World Bank's 2019 Doing Business Ranking.
According to Mercy Tambon, World Bank Regional Director for the South Caucasus, "I am very pleased with Georgia's performance in the Doing Business index. The country has continued to advance its position in the rankings over the past three years. This is a testimony of the Government's commitment to a progressive reform agenda to improve the business environment."
Georgia implemented key reforms in the following areas;
1. Georgia made it easier to start a business by cutting or simplifying post-registration procedures (tax registration, social security registration, licensing);
2. Georgia made it easier to pay taxes by introducing new or significantly revised tax laws, simplifying tax compliance processes and decreasing the number of tax fillings or payments;
3. Georgia made it easier to enforce contracts by expanding court automation through introduction of electronic payments and processes, automatic assignment of cases to judges and by publishing judgements.
Nigeria can also emerge as a reference point in the Ease of Doing Business at the regional and global level, and the first level is the transmitting of the CAM Bill 2018 from the National Assembly to the President for signing.
The CAM Bill 2018 is a game changer that will transform the Nigerian business landscape. Some of the Major Highlights of the new CAM Bill include;
Section 2
Section 17
Section 18
Section 26
Section 29
Section 30
Section 32 & 34
Section 40
Section 98
Section 119
Section 176 (1)
Section 223
Section 238 (1)
Section 241 (2)
Section 241 (2)
Section 359 (2)
Section 375 (6)
Section 359 (2)
Sections 435-443
Sections 444-550
Section 693
Sections 719-722
Sections 747-795
Sections 796-811
Section 832
Section 843
Section 850
Section 852
Section 850
Section 801
One major observation is the provision for technological developments and advancements, like "Crowdfunding" which was not included in the legislation.
It is important for the CAM Bill 2018 to be reviewed periodically to integrate the new realities in the global socio-economic space.
Nigeria has a bold target of achieving the top 100 countries in the World Bank Doing Business Report ranking by 2020. The CAM Bill 2018 provides the vehicle for accelerated reforms that will also lead to economic growth.
This is a great opportunity for the Nigerian business environment and it cannot afford to miss the opportunity of signing a significant bill that will improve the business climate in the country.
Kindly Download - Companies and Allied Matters Act, 2020
Download the January 23, 2018 REPORT OF THE TECHNICAL ADVISORY COMMITTEE ON THE COMPANIES & ALLIED MATTERS ACT (AMENDMENT) BILL SUBMITTED TO THE SENATE COMMITTEE ON TRADE AND INVESTMENT
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