Civil Society Organisation alongside a team of senior lawyers, have intensified its legal challenge against sections of the Companies and Allied Matters Act (CAMA) 2020, arguing that some provisions of the law grant excessive powers to the Corporate Affairs Commission (CAC) and threaten constitutionally guaranteed freedoms.
- +CSOs push back against CAMA controls, file appeal court action
At a stakeholders’ roundtable in Abuja, the organization said the suit seeks to nullify sections of Part F of CAMA 2020 which allegedly allow the CAC to sanction incorporated trustees and non profit organisations without adequate judicial oversight.
At a stakeholders’ roundtable in Abuja, the organization said the suit seeks to nullify sections of Part F of CAMA 2020 which allegedly allow the CAC to sanction incorporated trustees and non profit organisations without adequate judicial oversight.
The legal team handling the matter includes Professor Enyinna Nwauche, SAN; Professor Sam Erugo, SAN; Akin Omisade; and technical consultant, Ilutse Ntukekpo.
Speakers at the event argued that the disputed provisions undermine the rights to fair hearing and freedom of association guaranteed under the 1999 Constitution.
Noya Sedi, project manager at Global Rights, said the lawsuit extends beyond the interests of civil society organisations, stressing that any law capable of restricting civic liberties should concern all Nigerians.
“The goal of the lawsuit 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 profits,” she said.
According to the organisation, the suit specifically challenges sections 824, 828, 839, 842, and sections 850(1)(d) and 850(2)(d) of the Act.
Counsel in the matter, Lagi Innocent of Adunu, Ahmed, Ibrahim and Co., argued that the National Assembly exceeded its constitutional powers by enacting provisions that permit the CAC to determine sanctions against organisations without recourse to the courts.
He maintained that the constitution guarantees every Nigerian and registered body the right to fair hearing before any punishment or sanction can be imposed.
“The constitution is supreme and binding on all authorities and persons throughout the federation. Any law inconsistent with the constitution is null and void to the extent of its inconsistency,” he said.
Innocent further contended that while the CAC was constitutionally created to regulate business activities, its powers should not extend to actions capable of infringing on civic freedoms and the operations of non governmental organisations.
Participants at the roundtable also raised concerns over judicial independence, funding of government institutions and the need for stronger public participation during legislative processes.
The stakeholders called for amendments to the contentious provisions of CAMA to ensure they align with constitutional safeguards and democratic principles.
The case, currently before the Court of Appeal, Lagos Division is expected to test the limits of regulatory oversight over civil society organisations and the extent of constitutional protections for associations and incorporated trustees in Nigeria.
