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17 May 2018

Nigerian Senate passes bill on business reform

On 15 May 2018, the Nigerian Senate passed a bill to repeal the Companies and Allied Matters Act 1990, Cap C20, LFN 2004 and re-enact the Companies and Allied Matters Act 2018 (the Bill).

This is expected to be the most significant business reform bill to be passed in Nigeria in over 27 years. Its assent is expected to improve the country's business environment, with the aim of making Nigeria as competitive as other developed economies around the world.

The highlights of the Bill include:

  • A provision allowing one individual to establish and operate a private company as opposed to the 1990 Act which requires a minimum number of two people.
  • The creation of the Limited Liability Partnership (LLP) as a new legal entity format for businesses. The LLP is targeted at increasing foreign direct investment in Nigeria.
  • A reduction in the cost of running a small company as the Bill repeals the requirements on small companies to have a company secretary and hold Annual General Meetings.
  • A reduction in the cost of registering businesses as the Bill provides for businesses to register using the e-registration platform.
  • A reduction in the minimum share capital required for companies and start-ups businesses to encourage investments and create new jobs.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young Nigeria, Lagos

  • Abass Adeniji
    abass.adeniji@ng.ey.com
  • Akinbiyi Abudu
    akinbiyi.abudu@ng.ey.com
  • Temitope A Samagbeyi
    temitope.samagbeyi@ng.ey.com
  • Chinyere Ike
    chinyere.ike@ng.ey.com
  • Oluwatumininu Familusi
    oluwatumininu.familusi@ng.ey.com

Ernst & Young Advisory Services (Pty) Ltd., Africa ITS Leader, Johannesburg

  • Marius Leivestad
    marius.leivestad@za.ey.com

Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London

  • Rendani Neluvhalani
    rendani.mabel.neluvhalani@uk.ey.com
  • Byron Thomas
    bthomas4@uk.ey.com

Ernst & Young LLP, Pan African Tax Desk, New York

  • Silke Mattern
    silke.mattern@ey.com
  • Dele A. Olaogun
    dele.olaogun@ey.com
  • Jacob Shipalane
    jacob.shipalane1@ey.com

Ernst & Young LLP, Pan African Tax Desk, Houston

  • Elvis Ngwa
    elvis.ngwa@ey.com

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ATTACHMENT

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Document ID: 2018-5662

 
 

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