The 2020 CAMA and Beneficial Ownership in the Extractive Industry
Communications
3 September 2020
By Charles Uche ESQ
Incorporating and fronting companies is a convenient and effective way of concealing identity, engaging in illicit transactions and evading liabilities. In many countries, a company can be formed without disclosing the identity of the individual who ultimately controls or profits from the business, i.e., the beneficial owner. Criminals and politically exposed persons (PEPs) can assign “nominee” shareholders to be listed on official documents or can list other legal entities (other companies can be shareholders in a company) as the “owners,” thereby creating a chain of companies–often across borders–that can be difficult for investigators and law enforcement to trace and recover.
Connected Development (CODE), has over the year, through its Conflict & Fragility project, in partnership with Oxfam-in-Nigeria advocated for a robust beneficial Ownership transparency through the instrumentality of a robust legislation as an essential means for combating corruption, stemming illicit financial flows, and fighting tax evasion. While many initiatives exist to maintain and disclose beneficial owners of companies in Nigeria, like the Beneficial Ownership Register launched by Nigeria Extractive Industries Transparency Initiative (NEITI) in December 2019, none of them until the enactment of the 2020 Companies and Allied Matters Act (CAMA) had the statutory backing for enforcement.
Documents from Panama papers on Dan Etete and Kolawole Aluko can be used as classical case studies in demonstrating how these two individuals, like many others, capitalised on the non-existent or fragile regulatory framework in Nigeria’s extractive “oil & gas” sector to launder money and evade liabilities which has cost the Nigerian government and people revenue in the billions of dollars. Till date, none of the aforementioned persons has been successfully prosecuted and convicted partly due to concealment of identities and fronting of shell companies in their transactions. Shell companies are legal entities “companies” that are non-operational and lack assets or staff. They are conveniently used by money launderers to keep their identities hidden while they engage in illicit transactions across borders and evade tax.
Dan Etete: Dan Etete, a former Petroleum Minister under Nigerias Dictator Head-of-State, Gen. Sani Abacha had in 1998, incorporated a Shell company named “Malabu Oil & Gas Limited” using a fictitious name “Kweku Amafegha”, with few other persons, while he was the ultimate and beneficial owner of the company – though his real name did not appear in any official documents. Five days after he incorporated this company, he, as Petroleum Minister, awarded this company an oil block “OPL 245”. He used this shell company to launder money across the Nigerian border and acquire luxurious assets, while escaping liabilities.
Kolawole Aluko: Kola Aluko is a businessman and oil executive. Media reports have described Aluko as a key ally to Alison-Madueke, a relationship both have previously denied. He rose to prominence around 2011 when Nigeria’s government awarded two companies he founded or owned valuable oil blocks on a no-bid basis. One of his companies, Atlantic Energy, was created the day before it inked the deals to acquire multimillion-dollar oil licenses.
In Nigeria, only a member of a Public Company (PLC) was under obligation, under the old 1990 CAMA, to disclose in writing when required, the capacity in which he holds any shares in the company; either as a beneficial owner or as a nominee of an interested person. See Sections 94-98, old CAMA.
The 2020 CAMA in section 119 has extended such obligation (to disclose the particulars of shareholding by notifying the company) to persons with significant control in all companies. Similarly, as provided in section 120 of the new CAMA, a person who is a substantial shareholder in a public company and holding (either by himself or by his nominee/proxy) shares in the company which entitle him to exercise at least five per cent (5%) of the unrestricted voting rights at any general meeting of the company, is required to disclose such holding by notifying the company within a stipulated time.
This new disclosure provisions are poised to enhance transparency and prevent asset shielding as well as combat money laundering, terrorism financing and all forms of illicit financial flows by legal entities having limited liability.
While there is no gainsaying that the above disclosure provisions would enhance transparency and accountability in the Extractive sector in Nigeria, especially in the Petroleum Industry, as many of the oil and gas companies are private limited liability companies (LTD); many of which have ‘rightly’ escaped disclosure obligations with no legal sanction – there is also an urgent need for the enactment of the Petroleum Industry Governance Bill (PIGB) which has as one of its core objectives – “to promote transparency and accountability in the administration of petroleum resources of Nigeria”.
I’m really enjoying the design and layout of your website.
It’s a very easy on the eyes which makes it much more enjoyable
for me to come here and visit more often. Did you hire out a developer to create your theme?
Great work!
Here is my web page … Selangor trophy suppliers
I will right away grasp your rss as I can not to find your
email subscription link or e-newsletter service. Do you’ve any?
Kindly let me realize so that I may just subscribe.
Thanks.
Hi, i feel that i noticed you visited my website so i came to
go back the want?.I am trying to to find issues to enhance my web site!I suppose its ok to use some of your concepts!!
Thanks for any other wonderful post. Where else may
anybody get that type of information in such
an ideal manner of writing? I’ve a presentation next week, and I am on the search for such info.
Hey There. I found your blog using msn. This is an extremely well written article.
I’ll make sure to bookmark it and come back to
read more of your useful information. Thanks
for the post. I’ll certainly return.
Hello, after reading this amazing article i am too happy to share
my experience here with mates.
Awesome issues here. I’m very satisfied to look your article.
Thanks so much and I am taking a look ahead to touch you.
Will you please drop me a mail?
Thank you for every other fantastic article. Where else could anyone get
that type of information in such a perfect manner of writing?
I have a presentation next week, and I’m at the look for such information.
I really like your blog.. very nice colors & theme.
Did you design this website yourself or did you hire someone to do it for you?
Plz reply as I’m looking to design my own blog and would like to find out where
u got this from. cheers
Great info. Lucky me I recently found your website by chance (stumbleupon).
I have bookmarked it for later!
Hi there, its good post regarding media print, we all be familiar with
media is a enormous source of information.
We’re a bunch of volunteers and starting a brand new scheme in our community.
Your site offered us with helpful info to work on. You’ve done a formidable activity and
our whole community will probably be thankful to you.
Amazing! I love Centennial
Hi there, I enjoy reading all of your article post.
I wanted to write a little comment to support you.
Unquestionably believe that which you said.
Your favorite reason appeared to be on the net the easiest thing to be aware of.
I say to you, I certainly get irked while people consider worries that they
just don’t know about. You managed to hit the nail upon the top and also defined out the whole thing without having side effect , people can take
a signal. Will likely be back to get more. Thanks
[url=https://cialisqtabs.quest/]cialis online safe[/url]
We also help our purchasers with financial institution deposit to file
citizenship purposes.
Hi my loved one! I want to say that this post is awesome,
nice written and include almost all important infos.
I’d like to peer more posts like this .
[url=https://effexor.boutique/]effexor for sale[/url]
Heya are using WordPress for your blog platform? I’m
new to the blog world but I’m trying to get started and create my own. Do you require any coding expertise to make your own blog?
Any help would be really appreciated!
Very good post. I definitely appreciate this website.
Keep writing!
Feel free to visit my web page – trophy kl
A person essentially lend a hand to make severely posts
I would state. This is the first time I frequented your website page and to this point?
I surprised with the research you made to create this particular submit extraordinary.
Excellent process!
Great site you have here but I was curious if you knew
of any message boards that cover the same topics talked about in this article?
I’d really like to be a part of group where I can get responses from other knowledgeable
people that share the same interest. If you have any
suggestions, please let me know. Appreciate it!
Greetings! I’ve been following your weblog for a while now and
finally got the courage to go ahead and give you a shout out from Huffman Texas!
Just wanted to mention keep up the fantastic work!
Travel Juanda Jember
Ankara Eğitim Koçu
What’s up, I want to subscribe for this website to obtain most up-to-date updates,
so where can i do it please help.
[url=http://viagraktab.quest/]viagra soft tabs uk[/url]
Hey there would you mind sharing which blog platform you’re using?
I’m looking to start my own blog soon but I’m having a hard time selecting between BlogEngine/Wordpress/B2evolution and Drupal.
The reason I ask is because your design seems different then most blogs and I’m looking for something unique.
P.S Apologies for being off-topic but I had to ask!
Nice post. I learn something totally new and challenging on blogs I stumbleupon on a daily
basis. It’s always useful to read through content from other writers
and practice a little something from other web sites.
Good information. Lucky me I recently found your site
by chance (stumbleupon). I’ve bookmarked it for later!
Hello to all, the contents present at this web site are in fact amazing for people
knowledge, well, keep up the nice work fellows.
magnificent put up, very informative. I ponder why the
other specialists of this sector do not understand this. You must
continue your writing. I’m sure, you’ve a huge readers’ base already!
[url=https://buyprednisone.works/]prednisone for sale[/url]
Howdy! I just would like to offer you a huge
thumbs up for your great information you have here on this post.
I am returning to your website for more soon.
What’s up everyone, it’s my first pay a visit at this website, and paragraph
is actually fruitful designed for me, keep up posting such posts.
Its like you read my mind! You seem to know so much about
this, like you wrote the book in it or something.
I think that you can do with a few pics to drive the message home a little bit,
but instead of that, this is fantastic blog.
A great read. I’ll definitely be back.
[url=https://pharmacy.golf/]legitimate online pharmacy uk[/url]
Informative article, just what I needed.Travel Jember Juanda
It’s a pity you don’t have a donate button! I’d definitely donate
to this fantastic blog! I suppose for now i’ll settle for bookmarking
and adding your RSS feed to my Google account. I look forward to brand new updates and will talk about this website with my Facebook group.
Talk soon!
I want to to thank you for this great read!! I certainly enjoyed every bit
of it. I have got you book marked to check out new stuff you post…
Its liке you read mʏ mind! Υou ɑppear how to buy generic colchicine pill know so
much aƅоut this, like ʏou wrote thｅ book in it
oｒ somеthіng. I think tһat you can Ԁo with sоme pics tօ drive tһe message homе a bit, but
insteaɗ of that, tһis is excellent blog.
Ꭺ greаt read. I’ll definiteⅼy bе baсk.
Hello to all, how is the whole thing, I think
every one is getting more from this web page, and your views are nice in support of new viewers.
I just could not leave your site before suggesting that I extremely enjoyed the
standard info an individual provide in your visitors? Is going to be back incessantly in order to investigate cross-check new posts
[url=http://buyazithromycin.guru/]buy azithromycin online uk[/url]
[url=https://buyprednisolone.boutique/]buy prednisolone uk[/url]
[url=https://cialisstab.monster/]cialis 20mg price in south africa[/url]
Hello this is somewhat of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually code with HTML.
I’m starting a blog soon but have no coding skills so I wanted to
get guidance from someone with experience.
Any help would be enormously appreciated!
[url=https://albendazole.digital/]albenza 200 mg tablet[/url]
You’re so interesting! I don’t think I’ve read anything like
that before. So nice to discover another person with some original thoughts on this topic.
Seriously.. thanks for starting this up. This web site is one thing that is required on the internet,
someone with a little originality!
I’m not that much of a internet reader to be honest but your sites really nice,
keep it up! I’ll go ahead and bookmark your website to come back later.
All the best
Wow that was strange. I just wrote an very long comment but after
I clicked submit my comment didn’t show up. Grrrr… well I’m
not writing all that over again. Regardless, just wanted to say superb blog!