CAMA Legal Battle Heads to Appeal as CSOs Push Back Against CAC Powers

Civil society organisations have escalated their challenge against contentious provisions of the Companies and Allied Matters Act 2020 (CAMA), signaling a fresh legal showdown as the case moves to the Court of Appeal.

The renewed push follows a Federal High Court ruling on October 3, 2025, which declined jurisdiction on technical grounds, sidestepping the substantive constitutional questions raised by the plaintiffs.

At a media and stakeholders’ roundtable convened by Global Rights in partnership with NULAI Nigeria, legal experts and advocates framed the case as a defining test of the limits of regulatory authority in Nigeria.

Programme Manager at Global Rights, Noya Sedi, said the litigation is intended to bring public scrutiny to provisions of CAMA that grant the Corporate Affairs Commission (CAC) sweeping oversight powers over organisations.

According to her, the implications go beyond civil society groups, touching directly on citizens’ constitutional freedoms.

“This is about protecting fundamental rights like freedom of association and fair hearing. The outcome will affect every Nigerian,” she said.

Central to the dispute are provisions that empower the CAC to sanction or dissolve organisations without what critics describe as sufficient judicial oversight.

Legal practitioners involved in the case argue that such authority risks undermining due process and blurring institutional boundaries.

Barrister Innocent Lagi warned that allowing the provisions to stand could weaken the rule of law, noting that the current framework appears to position the CAC as “accuser, investigator, and adjudicator.”

“No regulatory body should combine these roles in matters affecting civil rights. Such issues must be determined by the courts,” he said.

Lead counsel to the plaintiffs, Prof. Sam Erugo (SAN), said the lower court dismissed the suit on the basis of locus standi, ruling that the plaintiffs failed to show direct personal injury.

He described the decision as a common hurdle in public interest litigation, where courts often avoid substantive constitutional interpretation on technical grounds.

Erugo argued, however, that the Constitution permits legal action where there is a likelihood of rights infringement, not only after harm has occurred.

He confirmed that the appeal will address both procedural questions and the broader constitutional issues surrounding administrative powers under CAMA.

Legal teams have already prepared and are set to file the notice of appeal within the statutory timeline, with court records compiled for transmission.

Stakeholders say the appellate court’s eventual ruling could redefine the balance between regulation and civil liberties, with lasting consequences for corporate governance and civic space in Nigeria.