In a bid to bolster shareholder oversight and align fiscal policies with monetary strategies, kakalistiq.com reports that the Senate’s Banking, Insurance, and Financial Institutions Committee has vowed to review the Companies and Allied Matters Act (CAMA).
Led by Senator Mukhail Adetokunbo Abiru, FCA (Lagos East), the committee made this commitment during discussions with the Bank Directors Association of Nigeria (LTD/GTE), headed by Chairman Mustafa Chike-Obi.
Chike-Obi emphasized the urgent need for CAMA amendments, citing discrepancies in directorial compositions within banks. He noted that while CAMA stipulates one-third of directors should be independent, many banks’ boards are primarily filled with executive directors, posing challenges for shareholder representation.
Expressing shareholders’ concerns, Chike-Obi highlighted the imbalance where only three seats on boards are allocated to shareholders while the majority are occupied by executive directors and independent directors.
Responding to these concerns, Senator Abiru assured the banking sector that the Senate is actively amending key financial laws like the Nigerian Deposit Insurance Corporation Act (NDIC) and the Central Bank of Nigeria (CBN) Act. He pledged a thorough review of CAMA to address contemporary realities and enhance shareholder influence.
Abiru underscored the Senate’s alignment with the government’s economic vision, aiming for a $1 trillion economy within eight years. He acknowledged the need for increased capital to support this ambition and emphasized the importance of synchronizing measures to combat inflation while fostering GDP growth.
He said, “The administration informed us that they want a 1 trillion dollar economy within eight years, which we have endorsed. Part of that is that we have to raise more capital because the capital we have in banks today cannot support a 1 trillion dollar economy. “All of us are going to raise capital to meet the objective within a year or two to meet the president’s objective. However, we want more synergy between measures to fight inflation and GDP growth.
The Senate’s commitment to bridging gaps between fiscal policies and monetary strategies signals a proactive approach to fortifying Nigeria’s financial landscape and ensuring robust shareholder protections.
