Business
CAMA 2020 modernised Nigerian company law and legalised single-member companies
The Companies and Allied Matters Act 2020 replaced the 1990 Act. It permits single shareholder/single director private companies, abolished the authorised share capital concept in favour of issued share capital, introduced limited partnerships and LLPs, and created a statutory rescue regime with administration and CVAs.
Key rules
- Jurisdiction — Corporate Affairs Commission registers; Federal High Court has exclusive jurisdiction over company matters under s.251 of the Constitution.
Governing law
- Companies and Allied Matters Act, 2020 — Single-member companies; issued share capital; administration and CVAs; PSC register.
- Investments and Securities Act, 2007 — Capital markets regulation by the SEC.
In practice
CAMA 2020 is the most significant Nigerian commercial law reform in three decades. It allows one person to form and run a private company, removing the two-member minimum; replaces authorised share capital with minimum issued share capital; exempts small companies from the audit requirement in defined circumstances; and permits electronic filing and virtual meetings for private companies. Part XI creates insolvency alternatives previously absent — company voluntary arrangements, administration and netting provisions — shifting Nigeria toward rescue rather than liquidation. It also introduced the register of persons with significant control and required disclosure of beneficial ownership. Registration is with the Corporate Affairs Commission.