Senate Vows to Safeguard Shareholders’ Interests and Strengthen Companies’ Operations

The Nigerian Senate has pledged to collaborate with fiscal and monetary authorities to protect shareholders’ interests and to empower shareholders in their business operations.

This commitment was made during an interactive session between the Senate Committee on Banking, Insurance, and Other Financial Institutions, led by Senator Mukhail Adetokunbo Abiru, and the board members of the Bank Directors Association of Nigeria (LTD/GTE), led by its Chairman, Mr Mustafa Chike-Obi.

During the meeting, Chike-Obi highlighted the challenges faced by the Banking Industry, emphasizing the need for an urgent review and amendment of the Companies and Allied Matters Act (CAMA) to align it with the current economic and business realities in Nigeria.

Chike-Obi specifically pointed out the lack of independence granted to directors in companies, including banks, under the current CAMA Act.

He noted that the Act does not allow for one-third of non-executive directors to be independent, except for “Executive Directors”.

Responding to the concerns raised, Senator Abiru acknowledged the need for an amendment to the CAMA Act and assured the Bank Directors that the Senate is currently reviewing the Nigerian Deposit Insurance Corporation (NDIC) Act and the Central Bank of Nigeria (CBN) Act.

He further promised that the Senate Committee will examine the current CAMA Act to bring it in line with current realities.

The Senate Committee Chairman emphasized the importance of these amendments in light of the government’s goal to achieve a 1 trillion dollar economy within eight years.

He stressed that to achieve this, it is necessary to raise more capital, as the current capital held by banks is insufficient to support the desired economic growth.

This commitment from the Senate to work in synergy with fiscal and monetary authorities in safeguarding shareholders’ interests and strengthening companies’ operations is a positive step towards achieving the ambitious economic goals set by the administration.