With the recent repeal and re-enactment of the Companies and Allied Matters (CAMA) Act, Nigeria may begin to witness increased investments, job creation and we as entrepreneurs, and investors are really excited. This new bill has been described as one of the biggest business reform bills passed in Nigeria in over 25 years. The bill will help to make Nigeria’s business environment as competitive as it applies in other countries around the world by allowing business owners register their companies in a faster and more efficient way.
Nigeria was ranked 145th out of 190 economies in the 2018 World Bank Doing Business (WBDB) Ranking Index. One of the indicators the WBDB team measures is the relative ease or difficulty in establishing and running a business in Nigeria. In this regard, Nigeria is ranked on the Starting a Business indicator as 130 out of 190 economies and for the first time was also recognized as one of the top ten (10) most improved economies in the world. However, as one of the largest economies in Africa, Nigeria needs to greatly improve on the rankings. The WBDB Index offers a useful and measurable assessment of economies around the world; and also serves as a resource for private sector and other stakeholders interested in investing in Nigeria.
The Act is one of the most critical pieces of legislation which impacts the Nigerian business climate and the Micro, Small and Medium Scale Enterprises (MSMEs). It also directly affects the influx of Foreign Direct Investment (FDI) into Nigeria because of its relevance to ease of doing business and ease of investing in Nigeria.