Companies and Allied Matters Act (CAMA)

An Act is the main law governing the incorporation, management, and winding up of companies in Nigeria. It streamlines business registration and strengthens corporate governance for all stakeholders, including foreign investors. The law also introduces modern frameworks for insolvency and restructuring.

What Is This Policy?

The principal legislation governing the incorporation, management, and winding up of companies in Nigeria — CAMA 2020 is the most comprehensive overhaul of Nigerian company law in over 30 years.

Who Does It Target?

Entrepreneurs and business owners registering companies Directors, shareholders, and company secretaries Insolvency practitioners Foreign investors incorporating in Nigeria

What Does It Aim to Achieve?

Ease the process of business registration and incorporation Strengthen corporate governance and director accountability Introduce modern insolvency and restructuring frameworks Enable electronic registration and digital company operations

Key Features

Single-Member Companies: Allows individuals to register a private company with a single shareholder and director. Electronic Filing: CAC processes are fully digitalised — companies can be registered online. Revised Insolvency Framework: Introduces Company Voluntary Arrangement (CVA) and Administration as rescue mechanisms. Small Company Exemptions: Reduces compliance burden for small companies (audit, AGM, etc.).

Current Status

In force. CAMA 2020 is fully in effect and has been implemented by the Corporate Affairs Commission since its enactment.

Legal Framework

Companies and Allied Matters Act 2020 (CAMA 2020), Cap C20 LFN