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 Dipo Olowookere
Renewed buying interest raised the Nigerian Exchange (NGX) Limited by 0.33 per cent on Monday, with gains recorded in almost all the major sectors of the bourse at the close of transactions.
According to data harvested by Business Post, the insurance counter expanded by 0.62 per cent, the banking index grew by 0.59 per cent, the energy sector appreciated by 0.40 per cent, and the consumer goods space improved by 0.10 per cent, while the industrial goods segment closed flat.
When the closing gong was struck by 4 pm to signify the close of business on Customs Street, the All-Share Index (ASI) was up by 1,113.76 points to 243,707.07 points from 242,593.31 points, and the market capitalisation chalked up N714 billion to close at N156.308 trillion compared with the previous session’s N155.594 trillion.
Interest in Nigerian stocks yesterday resulted in a rise in the activity level, with the trading volume soaring by 17.86 per cent to 717.2 million units from 608.5 million units. The trading value advanced by 77.19 per cent to N56.7 billion from N32.0 billion, and the number of deals surged by 36.22 per cent to 73,321 deals from 53,826 deals.
FCMB was the busiest stock during the trading day, with a turnover of 152.3 million units worth N1.8 billion, Premier Paints exchanged 61.0 million units valued at N135.3 million, Dangote Cement traded 34.7 million units for N29.7 billion, The Initiates sold 32.8 million units worth N1.0 billion, and Jaiz Bank transacted 32.6 million units valued at N293.3 million.
Yesterday, the market breadth index was positive after the exchange closed with 37 price gainers and 28 price losers, representing strong investor sentiment.
International Energy Insurance gained 9.92 per cent to settle at N7.98, the Initiates added 9.91 per cent to its share price to quote at N32.15, ABC Transport garnered 9.68 per cent to trade at N6.80, Abbey Mortgage Bank grew by 9.63 per cent to close at N10.25, and Linkage Assurance soared by 9.36 per cent to N1.87.
On the flip side, Fidson Healthcare gave up 10.00 per cent to finish at N122.85, Academy Press crashed by 9.70 per cent to N7.45, RT Briscoe depreciated by 9.43 per cent to N13.45, SUNU Assurances tumbled by 9.37 per cent to N4.06, and Learn Africa decreased by 8.70 per cent to N10.50.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a marginal 0.05 per cent drop on Monday, June 8, depleting the market capitalisation by N1.27 billion to N2.606 trillion from N2.607 trillion, and cutting the Unlisted Security Index (NSI) by 2.12 points to 4,356.20 points from the previous 4,358.32 points.
The contraction witnessed during the session was triggered by a price loser, which overpowered that gains recorded by two securities on the trading platform.
Data indicated that MRS Oil Plc lost N6 at the close of business to settle at N165.00 per share compared with last Friday’s price of N171.00 per share.
Conversely, Lighthouse Financial Services Plc added 9 Kobo to sell at N1.03 per unit versus 94 Kobo per unit, and Central Securities Clearing System (CSCS) Plc appreciated by 8 Kobo to N78.48 per share from N78.40 per share.
The volume of securities traded by investors yesterday soared by 51.9 per cent to 213,188 units from 140,345 units, and the value of securities increased by 12.6 per cent to N20.2 million from N17.9 million, while the number of deals executed fell by 7.4 per cent to 25 deals from 27 deals.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 64.8 million units exchanged for N4.4 billion.
GNI Plc also remained as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, trailed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
By Adedapo Adesanya
The Naira opened the new trading week on a negative note on Monday at the Nigerian Autonomous Foreign Exchange Market (NAFEX) and the black market.
At the parallel market, the Nigerian currency weakened against the US Dollar by N5 to sell for N1,380/$1 compared with the preceding session’s rate of N1,375/$1, and at the GTBank FX desk, it shed N1 to trade at N1,373/$1 versus N1,372/$1.
At the official market, it lost 63 Kobo or 0.05 per cent against the Dollar during the session to close at N1,362.84/$1, in contrast to last Friday’s value of N1,362.21/$1.
However, the Nigerian Naira gained N2.30 against the Pound Sterling at the spot market yesterday, quoting at N1,821.29/£1 compared with the previous rate of N1,823.59/£1, and improved against the Euro by 23 Kobo to settle at N1,574.35/€1 versus N1,574.58/€1.
Data from the Central Bank of Nigeria (CBN) showed that interbank forex turnover increased to $92.248 million across 90 deals, from $73.565 million last Friday.
On the policy front, participants believed that the application of the fourth edition of the Foreign Exchange Manual of the central bank, which introduces updated guidelines for foreign exchange transactions and tightening compliance requirements for authorised dealers and market participants, will enhance market flexibility and ease previous restrictions.
Meanwhile, the cryptocurrency market snapped from recent declines, jolted by Strategy’s purchase of 1,550 Bitcoin for approximately $101 million, increasing its total holdings to 845,256 BTC. The company raised $181 million through common stock sales, using the proceeds to fund the bitcoin purchase and increase its cash reserves to $1 billion, pushing the price of the coin higher by 3.2 per cent to $63,731.69.
Cardano (ADA) appreciated by 8.4 per cent to $0.1738, Ethereum (ETH) rose by 5.2 per cent to $1,711.54, Solana (SOL) expanded by 5.1 per cent to $67.82, and Ripple (XRP) improved by 4.9 per cent to $1.18.
Further, Dogecoin (DOGE) jumped by 4.3 per cent to $0.0873, Binance Coin (BNB) soared by 2.7 per cent to $609.50, and TRON (TRX) increased by 0.7 per cent to $0.3274, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $0.9997 and $0.9998, respectively.
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