Regulating ‘God’s Business’

Abstract

The Companies and Allied Matters Act of 2020 serves as the governing law for business entities and nonprofits in Nigeria. This Act has sparked controversy among faith-based groups and Non Governmental Organisations (NGOs) nationwide. While many commend this new framework for facilitating business operations, it has also introduced provisions that these faith groups and NGOs find demanding and rigid. Moreover, the Act is perceived to have significant implications, with nonprofits feeling it encroaches on their religious freedoms. Critics argue that since the government does not support nonprofits as seen in other countries, it should not impose such extensive regulations. This paper argues that nonprofits and NGOs in Nigeria enjoy a certain degree of tax exemption. If any religious organisation’s privileges are misused, the government is justified in its regulation. Additionally, this paper explores the various points outlined in Part F of CAMA, concluding that the Act aims to prevent misconduct, mismanagement, and fraud within nonprofits and faith organisations to enhance public trust.