A bill that seeks to strengthen the operations of Non-Governmental Organisations (NGO) in Nigeria has scaled second reading at the Senate. The bill, an amendment to the Companies and Allied Matters Act, 2020, is sponsored by Senator Ibrahim Oloriegbe (APC, Kwara Central).
Besides increasing the effectiveness of NGOs in Nigeria, the legislation is also aimed at introducing measures that address regulatory issues relating to registration, administration and merger of such organisations.
One major provision the bill seeks to amend is to allow NGOs provide annual returns to the Corporate Affairs Commission (CAC) once in a year, against the current law which mandates NGOs to make such submissions twice in a year.
The second reading was sequel to a deliberation on the details and proposed amendments contained in the bill.
The CAMA Act, one of the most significant legislations passed by the eighth assembly, enhances Nigeria’s business environment and promotes the growth of Micro, Small and Medium Scale Enterprises. It also guides the registration and administration of companies, business entities and associations.
A major objective of the bill is to provide a consistent regulatory framework that enhances NGO coordination.
The legislation proposes amendments to 11 Clauses of the CAMA Act.
They are: Section 2 which deals with establishment of governing board, Section 81 which deals with related associations, Section 83 which deals with application of income and Section 839 which deals with suspension of trustees, appointment of interim manager.
Other sections are: 842 which deals with accounts of dissolved incorporated trustees, 843 which deals with accounts which cease to be dormant before transfer, 844 which deals with dormant bank accounts and 845 which deals with annual statement of affairs. Also to be amended are Sections 846 which deals with accounting records and statement of account, 848 which deals with bi-annual returns and 849 which deals with merger of association – which is amended to give associations with similar objectives, the discretion to merge.
The key proposals are:
– To amend Section 2(2) to provide for the representation of NGO in the membership or governing board of CAC.
– Section 839 to curb the wide power of CAC to suspend trustees and appoint interim managers for NGOs.
– Section 85 to reduce the burden on NGOs to submit bi-annual statement of affairs to CAC as opposed to annually which is the standard requirement for profit-making entities.
– And delete Sections 842, 843 and 844 which border on the status of the bank account of the NGOs. This, the sponsor of the bill said, infringes on the code of confidentiality between banking institutions and their customers.
He added that if passed, the legislation will not only provide an acceptable and more coordinated legal framework for NGO regulation but more significantly strengthen the civil space for Nigeria.
