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Drop unfair CAMA sections undermining constitutional rights, CSOs tell CAC, NASS

.call for judicial independence

By Gabriel Ewepu

ABUJA – Civil Society Organisations, CSOs, including Global Rights, TAP Initiative, the Open Society Initiative for West Africa (OSIWA) and Network of University Legal Aid Institutions (NULAI) Nigeria, and lawyers, Friday, called on the Corporate Affairs Commission, CAC, National Assembly, NASS, the Attorney General of the Federation, AGF, to drop unfair sections of the Companies and Allied Matters Act, CAMA, in the interest of Nigerians.

They made the call at a one-day ‘Media and Stakeholders roundtable held on Thursday, in Abuja, convened by Global Rights and NULAI Nigeria, focusing on the ongoing strategic litigation under CAMA 2020 and its implications for civic space and democratic engagement in Nigeria.

They said in October 25, 2025, the Federal High Court setting in Lagos allegedly said it has no jurisdiction to handle the case, which according to the CSOs, after a thorough review of the judgment from the Federal High Court in Lagos, therefore, deemed it fit to file a notice of appeal on January 2, 2026, while on January 29, 2026 they transmitted the cased to the Court of Appeal.

Meanwhile, it was pointed out by the CSOs sections of CAMA 2020, they are kicking against including Section 824, which empowers the CAC to classify associations; Section 824(4), which grants it authority over objections to the registration of trustees; and Sections 850(1)(d) and 850(2)(e), which deal with the dissolution of organisations and withdrawal of registration.

The Project Manager, Global Rights Nigeria, Noya Sedi, explained why the roundtable became necessary at this point as the litigation goes beyond the interests of CSOs, but in the interest of Nigerians who are affected by the CAMA 2020, therefore warned that any law capable of restricting civil liberties—whether affecting individuals or groups—should concern all Nigerians.

According to Sedi, the idea behind the roundtable is to bring the conversation into the public domain, saying, “We can’t restrict it to just the CSO space, because this issue affects every Nigerian simply by virtue of being a Nigerian, being protected by our Constitution, and being entitled to rights in this country.”

She said the CSOs “are contesting specific provisions of the Companies and Allied Matters Act, CAMA, that confer certain powers on the Corporate Affairs Commission, CAC. We believe these provisions directly contravene the Constitution, which guarantees fundamental rights — including the right to freedom of association, the right to fair hearing, and other civic protections.

“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.

“Take fair hearing. The Constitution says every Nigerian deserves it, but what if CAMA lets CAC shut down your company over paperwork, without ever letting you explain yourself? That’s not just bad policy, that’s unconstitutional.

“The Constitution is supreme. No law, no agency, stands above it. So we’re in court asking for those sections of CAMA to be amended. To align them with the rights Nigerians are already guaranteed.

“Let me give one example. If a provision of CAMA allows the CAC to shut down a company for failing to file returns or pay dues, without giving that company an opportunity for fair hearing, then that directly violates the Constitution. The Constitution guarantees every Nigerian the right to be fairly heard.”

She added that, “There are other instances where the CAC’s powers under CAMA are not in consonance with the Constitution. And as we know, the Constitution is the supreme law of the land. Every other statute must bow to it.”

She continued, “At the Federal High Court in Lagos, the case wasn’t even heard on its merits. A preliminary objection was upheld — the court ruled that the claimant lacked legal standing and hadn’t demonstrated direct impact. That’s why we are now at the Court of Appeal.

“We are seeking an amendment of those specific provisions so they better protect the rights of Nigerians — both individuals and companies.”

The legal counsel to the plaintiffs, Prof. Sam Erugo (SAN), argued that the said provisions in CAMA violate constitutional safeguards for citizens, because it gives the CAC powers to unnecessarily punish organisations and Nigerians without regard to judicial oversight.

Prof Erugo expressed concerns over the sections of CAMA 2020, as he pointed out that disputes should be resolved using the litigation instrument rather than administrative sanctions.

He also added that the case was dismissed by the Federal High Court sitting in Lagos, saying on the grounds that the plaintiffs lacked locus standi because they failed to show a direct impact of the sections they are contesting.

He referred to the Constitution as allowing Nigerians to seek judicial protection where their rights may be threatened.

In another remark, a legal practitioner and expert, Innocent Lagi, asserted that he has now turned to be the complainant, prosecutor, and judge in matters affecting CSOs, adding that such is purely not in line with the principle of fair hearing as enshrined in the constitution.

Lagi further stated that it is important fair hearing is given to companies and individuals as a regulator and not to impose punishments on them in the name of fines or dissolution.

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