Corporate Governance and Service Delivery in Nigeria’s Corporate Affairs Commission: A Reflection on the 2001 Reform Exercise

Abdulrazak Yuguda Madu,Saidu Idris

doi:10.5901/mjss.2015.v6n6s4p110

Abstract

The pre-reforms period of the Nigeria’s Corporate Affairs Commission (C.A.C) was characterized by lack of standing system of tracking of companies’ compliance and general gross inefficiency in the delivery of services by the Commission. In 2001 CAC experienced reform and re-organization processes; meant to make it more responsive to discharging its regulatory role and achieving good corporate governance practices and efficiency in service delivery. The question is, has these processes strengthened the quality of services delivered by the Commission? The objectives of this paper are to highlight the components of the re-organization exercise of C.A.C and see how the reform has impacted on the Commissions’ performance. To achieve these, the paper employs the use of both empirical and secondary sources of data for analysis. The Service Quality Model was used as theoretical guide to the study. It was observed that the Commissions’ reform and re-organization has impacted in computerization of company registration process, improved human resource quality and even the introduction of new services. The paper, therefore, recommends that for good corporate governance practices to be achieved in Nigeria, the C.A.C should continue to strengthen its compliance and enforcement processes and procedures and also ensure that all the registered companies are continually monitored and sanctions enforced on defaulters. When compliance and enforcement mechanisms are reinforced, the Nigeria’s C.A.C would raise the confidence of investors and general public. DOI: 10.5901/mjss.2015.v6n6s4p110

Highlights

In our today’s competitive business world, issues of corporate governance have gained increased prominence in countries around the globe
Prior to the reform of 2001, the operations of C.A.C was characterized by lack of standing system of tracking of companies’ compliance with the Commission’s standards non-registered companies operating in the economy on the one hand, and the concentration of authority to approve names on the other, has made service delivery difficult to achieve
The paper submits that this institutional reform has dramatically heightened the standard of the Commission

Summary

Introduction

In our today’s competitive business world, issues of corporate governance have gained increased prominence in countries around the globe. In theory and in practice, regulatory bodies exercise their duties by imposing requirements, restrictions and conditions; setting standards of performance and securing of compliance, or enforcement amongst other functions. To carry out such regulatory functions “the Nigeria’s Corporate Affairs Commission (C.A.C) was established based on the Companies and Allied Matters Act (CAMA), which was enacted in 1990; to regulate the formation and management of companies” (Ebenezer & Omoneye, 2014; and C.A.C, 2005). While the third section highlights reform components and discusses the paper, section four concludes it

Conceptual Review and Framework of Analysis

Highlights of the CAC Reforms and Discussion

Conclusion