Legal Battle Brews as Global Rights, NULAI Contest CAC Powers Under CAMA

Non-profit advocacy organisations – Global Rights and Network of University Legal Aid Institutions Nigeria, with support from the Open Society Initiative for West Africa, have joined forces to challenge certain provisions of the Companies and Allied Matters Act (CAMA) 2020 in court, arguing that they undermine constitutional right to fair hearing in Nigeria.

Speaking during a media briefing on Friday, the groups maintained that some powers conferred on the Corporate Affairs Commission conflict with constitutional protections such as freedom of association, the right to fair hearing, and the safeguarding of civic space.

Noya Sedi, a project manager at Global Rights, emphasized that the legal action goes beyond the interests of civil society organisations. She argued that any law capable of restricting civil liberties—whether affecting individuals or groups—should concern all Nigerians. According to her, the goal of the lawsuit is to ensure that regulatory authority under CAMA 2020 remains within constitutional boundaries and does not unjustifiably limit the independence and functioning of incorporated trustees and non-profits.

The case, as gathered, was filed by the incorporated trustees of Global Rights, Advocates of Sustainable Justice, and the TAP Initiative. The defendants include the President of the Senate, the Speaker of the House of Representatives, the Corporate Affairs Commission, and the Attorney General of the Federation.

At the heart of the dispute are specific sections of the law: Section 824, which empowers the CAC to classify associations; Section 824(4), which grants it authority over objections to the registration of trustees; and Sections 850(1)(d) and 850(2)(e), which deal with the dissolution of organisations and withdrawal of registration.

Legal counsel to the plaintiffs, Sam Erugo (SAN), told journalists that these provisions violate constitutional safeguards by allowing the CAC to penalize organisations without judicial oversight. He stressed that disputes should be resolved through litigation rather than administrative sanctions, warning that unchecked powers could be misused.

Although the case initially suffered a setback at the Federal High Court in October 2025, the legal team has proceeded to appeal the ruling. According to Professor Erugo, the court dismissed the case on the grounds that the plaintiffs lacked locus standi—meaning they failed to demonstrate a direct personal impact from the contested provisions.

He explained that courts often rely on such technical grounds in public interest cases to avoid delving into substantive issues, sometimes out of caution not to conflict with other branches of government. Nonetheless, he argued that the Constitution permits individuals to seek judicial protection where their rights may be threatened, even prospectively.

The organisations noted that, following a detailed review of the judgment, they filed a notice of appeal on January 2, with records subsequently transmitted to the Court of Appeal on January 29.

Another lawyer representing the plaintiffs, Innocent Lagi, contended that the law effectively makes the CAC the complainant, prosecutor, and judge in matters involving civil society groups. He described this concentration of authority as inconsistent with constitutional principles of fair hearing.

He argued that any organisation accused of wrongdoing should be entitled to have its case heard before an impartial court rather than being subjected to unilateral sanctions by the regulator. According to him, penalties such as fines or dissolution should only follow a judicial determination of liability.

Lagi further criticized the current practice, saying it allows the CAC to impose punishments without due process, thereby undermining a fundamental principle of justice. He also questioned how mitigating circumstances could be considered in the absence of a proper hearing.

Meanwhile, the Network of University Legal Aid Institutions Nigeria, established in 2003, continues to play a key role in advancing legal education reform and access to justice. Through a network of university-based law clinics, the organisation provides free legal services to underserved communities while training future lawyers committed to public interest advocacy. Since 2004, it has facilitated the establishment of multiple law clinics across Nigeria, expanding access to pro bono legal support.

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