Groups Demand CAMA 2020 Amendment To Curb Threat To Civic Space.

By Ferdinand Olise

The Global Rights Nigeria and other organisations have called on the necessary federal government bodies to resolve some provisions of the Company and Allied Matters Act, (CAMA), 2020 which they highlighted Sections that infringe on human rights.

The Organisations said that this is to ensure that regulatory authority under CAMA 2020 remains within constitutional boundaries and does not unjustifiably limit the independence and functioning of incorporated trustees and non-profit organisations.

The organisations underscored the importance to review the sections of the CAMA 2020 as some powers conferred on the Corporate Affairs Commission, CAC, conflict with constitutional protections such as freedom of association, the right to fair hearing, and the safeguarding of the civic space.

Speaking yesterday in Abuja at a Media and Stakeholders Roundtable convened by Global Rights Nigeria, and the Network of University Legal Aid Institutions, (NULAI), Nigeria, the Program Manager, Global Rights Nigeria, Noya Sedi, said the legal action goes beyond the interests of CSOs, noting that any law capable of restricting civil liberties whether affecting individuals or groups should concern all Nigerians.

“The idea of this roundtable is to bring this conversation into public discourse, into the public domain, and not restrict it just to this CSO space. The case is mainly to contest specific provisions of the Companies and Allied Matters Act, which confer specific powers on the Corporate Affairs Commission, which we believe are in direct contravention of the provisions of the Constitution.

“And then we will also investigate specific rights, such as the right to freedom of association, the right to fair hearing, and other civic protections. For example, if a provision of the CAMA enables the CAC to close down a company because of maybe not filing or not paying specific dues, without creating an opportunity for fair hearing. That is in direct contravention of the provision of the constitution which guarantees the freedom
to be fairly heard”, she said

“The constitution is the broad norm of the federation and every other statute has to be bounced before that. We are seeing how best we can hope on amendments of those specific provisions such that they are more accommodating to the average Nigerian and guarantee the Nigerian’s rights, the rights of companies and the rights of individuals in the country”, she said

Also, a member of the Strategic Litigation Team, Prof. Sam Erugo, (SAN), said the concerned sections of the CAMA 2020 violate constitutional protections by allowing the CAC to penalise organisations without judicial oversight.

He warned that if measures are not taking these powers can be misused, noting that disputes should be resolved through litigation rather than administrative sanctions.

“What the litigation seeks to achieve is to get the National Assembly to amend certain provisions of the Companies and Other Matters Act that appears to contravene certain constitutional provisions, particularly with regards to right to freedom of association, which is very critical, right to fair hearing, and of course, right to civic participation.

“So, when you look at certain provisions of the amended Companies and Other Matters Act, you find out that there are some of those provisions that appear to infringe on these rights. If you take, for instance, Section 824, it attempts to determine classification of registration. We are talking about civil registration.
Associations outside those doing business in Nigeria are now regulated by the Companies and Other Matters Act. If you want to register any organization today, you find out that your right to do that is constrained somehow by the Constitution”, he said.

Also, A legal practitioner, Barrister Lagi Innocent, emphasised the need for a fair hearing before the Court, rather than being subjected to unilateral sanctions by the regulator.

He added that the sections under contention allows the CAC to impose punishments without due process, thereby undermining a fundamental principle of justice.

The sections of the CAMA 2020 which are being contested against by the organisations include Section 824, which empowers the CAC to classify associations, Section 824(4), which grants it authority over objections to the registration of trustees, and Sections 850(1)(d) and 850(2)(e), which deal with the dissolution of organisations and withdrawal of registration.

The organisations challenging these provisions and seeking resolution are Global Rights, TAP Initiative, the Open Society Initiative for West Africa (OSIWA) and Network of University Legal Aid Institutions (NULAI) Nigeria.