THE ROLE OF THE COMPANIES AND ALLIED MATTERS ACT 2020 IN ADVANCING SUSTAINABLE CORPORATE PRACTICES IN NIGERIA

Abstract

This paper examines how the Companies and Allied Matters Act 2020 (CAMA) promotes sustainable corporate practices in Nigeria and the challenges faced in enforcing the obligations. The paper adopts a doctrinal research methodology, involving a critical analysis of the provisions of CAMA 2020 and relevant case law. Findings indicate that CAMA 2020 introduces crucial governance and transparency measures for sustainable corporate practices. However, challenges such as weak enforcement mechanisms, financial constraints, and limited technical expertise hinder full implementation. The paper recommends that strengthening regulatory enforcement and providing compliance incentives can improve adherence to sustainability obligations. Relevant regulatory authorities, particularly the Corporate Affairs Commission, should invest in awareness campaigns and capacity-building initiatives for businesses to ensure effective implementation. In conclusion, while CAMA 2020 lays a solid foundation for sustainable corporate practices, its success depends on the ability of stakeholders to enforce its provisions effectively and ensure widespread corporate compliance with its sustainability provisions.