Economy
Entrepreneurs Don’t Need Professionals to Register Their Businesses—CAC
By Adedapo Adesanya
The Corporate Affairs Commission (CAC) has reiterated that the Companies and Allied Matters Act, 2020 (CAMA 2020) will reduce the burden of starting and running small businesses in Nigeria as an individual can incorporate a private company.
According to the News Agency of Nigeria (NAN), this was disclosed by the Registrar-General of the commission, Mr Garba Abubakar in an interview with the agency on Monday in Abuja.
Mr Abubakar said the provisions of the new CAMA would stimulate economic growth, attract investment and promote the Ease of Doing Business campaign of the federal government, especially for Micro Small and Medium Enterprises (MSMEs).
He further said CAMA 2020 provides for individuals to register their businesses with the CAC without going through a lawyer or other stipulated professionals.
He said that under the new act, it was possible for one person to form and incorporate a private company, unlike before when a sole member of a company was impossible.
“For most small entrepreneurs, they do not even have the capital to start the business and some have to borrow the money to even pay the registration fee.
“If you made it mandatory for them to go through professionals before they register, that is actually adding to the cost; it is an unnecessary burden.
“Those that can afford it can pay lawyers and accountants, and those that cannot be able to do their registration by themselves.
“Under the new law, one person can register a company, unlike before when you need a minimum of two persons as directors and shareholders.
“An individual can register a company and he will be the sole shareholder and the sole director, and that company will have all the powers of the company.
“In the past, only a business name was allowed to be registered by an individual but now a company can be registered by an individual,” he said.
The CAC Register-General said that another significant benefit for small businesses under CAMA 2020 was the increase in the threshold for qualification as a small company.
“Under the old CAMA, a small company is one with a yearly turnover not exceeding N2 million and a net asset value not exceeding N1 million; otherwise it is recognised as a large company.’’
He, however, said that CAMA 2020 had substantially increased the threshold to an annual turnover of not more than N120 million, and net asset value of not more than N60 million.
“The implication of the increase is that much more businesses may now take advantage of the regulatory and financial privileges enjoyed by small companies.
“The mandatory requirement for a secretary is now optional, the requirement for filing audited financial statement and appointment of the auditor is also optional for small companies.
“Under the new law, we now have Limited Partnership and Limited Liability Partnership as new legal entities, and this has actually opened windows for entrepreneurs.
“They have a choice to register companies as business name, have Limited Partnership and Limited Liability Partnership, and that actually support the ease of doing business initiative,” he said.
The Registrar-General also said CAMA now recognises the authentication of documents by the electronic signature of a director, secretary, or other authorised officials of the company.
He said that the act also endorsed the electronic transfer of shares and private companies might also hold their general meetings electronically, however, this must be permitted by the articles of the company.
He said that personal notice and a notice of meetings might also be sent by e-mail, and business operations conducted remotely, and electronically endorsed documents would be fully recognised by the Corporate Affairs Commission (CAC).
“These provisions are geared toward easing business processes and eliminating challenges associated with strict application of the old CAMA,” he said.
President Muhammadu Buhari had on August 7 signed into law the CAMA 2020, which repeals and replaces the Companies and Allied Matters Act, 1990.
By Adedapo Adesanya
The Organisation of the Petroleum Exporting Countries (OPEC) has once again trimmed its 2024 and 2025 oil demand growth forecasts.
The bloc made this in its latest monthly oil market report for December 2024.
The 2024 world oil demand growth forecast is now put at 1.61 million barrels per day from the previous 1.82 million barrels per day.
For 2025, OPEC says the world oil demand growth forecast is now at 1.45 million barrels per day, which is 900,000 barrels per day lower than the 1.54 million barrels per day earlier quoted.
On the changes, the group said that the downgrade for this year owes to more bearish data received in the third quarter of 2024 while the projections for next year relate to the potential impact that will arise from US tariffs.
The oil cartel had kept the 2024 outlook unchanged until August, a view it had first taken in July 2023.
OPEC and its wider group of allies known as OPEC+ earlier this month delayed its plan to start raising output until April 2025 against a backdrop of falling prices.
Eight OPEC+ member countries – Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman – decided to extend additional crude oil production cuts adopted in April 2023 and November 2023, due to weak demand and booming production outside the group.
In April 2023, these OPEC+ countries decided to reduce their oil production by over 1.65 million barrels per day as of May 2023 until the end of 2023. These production cuts were later extended to the end of 2024 and will now be extended until the end of December 2026.
In addition, in November 2023, these producers had agreed to voluntary output cuts totalling about 2.2 million barrels per day for the first quarter of 2024, in order to support prices and stabilise the market.
These additional production cuts were extended to the end of 2024 and will now be extended to the end of March 2025; they will then be gradually phased out on a monthly basis until the end of September 2026.
Members have made a series of deep output cuts since late 2022.
They are currently cutting output by a total of 5.86 million barrels per day, or about 5.7 per cent of global demand. Russia also announced plans to reduce its production by an extra 471,000 barrels per day in June 2024.
By Aduragbemi Omiyale
A minority equity stake in Chappal Energies Mauritius Limited has been acquired by a Nigerian energy firm, Aradel Holdings Plc.
This deal came a few days after Chappal Energies purchased a 53.85 per cent equity stake in Equinor Nigeria Energy Company Limited (ENEC).
Chappal Energies went into the deal with Equinor to take part in the oil and gas lease OML 128, including the unitised 20.21 per cent stake in the Agbami oil field, operated by Chevron.
Since production started in 2008, the Agbami field has produced more than one billion barrels of oil, creating value for Nigerian society and various stakeholders.
As part of the deal, Chappal will assume the operatorship of OML 129, which includes several significant prospects and undeveloped discoveries (Nnwa, Bilah and Sehki).
The Nnwa discovery is part of the giant Nnwa-Doro field, a major gas resource with significant potential to deliver value for Nigeria.
In a separate transaction, on July 17, 2024, Chappal and Total Energies sealed an SPA for the acquisition by Chappal of 10 per cent of the SPDC JV.
The relevant parties to this transaction are working towards closing out this transaction and Ministerial Approval and NNPC consent to accede to the Joint Operating Agreement have been obtained.
“This acquisition is in line with diversifying our asset base, deepening our gas competencies and gaining access to offshore basins using low-risk approaches.
“We recognise the strategic role of gas in Nigeria’s energy future and are happy to expand our equity holding in this critical resource.
“We are committed to the cause of developing the significant value inherent in the assets, which will be extremely beneficial to the country.
“Aradel hopes to bring its proven execution competencies to bear in supporting Chappal’s development of these opportunities,” the chief executive of Aradel Holdings, Mr Adegbite Falade, stated.
By Adedapo Adesanya
Afriland Properties Plc helped the NASD Over-the-Counter (OTC) Securities Exchange record a 0.04 per cent gain on Tuesday, December 10 as the share price of the property investment rose by 34 Kobo to N16.94 per unit from the preceding day’s N16.60 per unit.
As a result of this, the market capitalisation of the bourse went up by N380 million to remain relatively unchanged at N1.056 trillion like the previous trading day.
But the NASD Unlisted Security Index (NSI) closed higher at 3,014.36 points after it recorded an addition of 1.09 points to Monday’s closing value of 3,013.27 points.
The NASD OTC securities exchange recorded a price loser and it was Geo-Fluids Plc, which went down by 2 Kobo to close at N3.93 per share, in contrast to the preceding day’s N3.95 per share.
During the trading session, the volume of securities bought and sold by investors increased by 95.8 per cent to 2.4 million units from the 1.2 million securities traded in the preceding session.
However, the value of shares traded yesterday slumped by 3.7 per cent to N4.9 million from the N5.07 million recorded a day earlier, as the number of deals surged by 27.3 per cent to 14 deals from 11 deals.
Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units sold for N5.3 billion.
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