Nigeria commits to beneficial ownership register to boost transparency
Mr Boss Mustapha, Secretary to the Government of the Federation (SGF), says the Federal Government will conclude development of Nigeria Beneficial Ownership Register before end of 2021 to boost transparency.
Mustapha said in Abuja during the 2021 Open Government Partnership (OGP) Week for “Nigeria OGP Steering Committee and Corporate Affairs Commission (CAC).”
Beneficial ownership register is an official record of names or items held in a database of a company.
He said that OGP was an international multi stakeholders initiative, focused on improving transparency, accountability, citizen participation and responsiveness to citizens through technology and innovation.
Mustapha said that the register would give access to company ownership information to government, companies and citizens.
This according to him, will empower stakeholders with the knowledge they need to investigate malicious company behaviour and hold it accountable.
“It will constrict the space in which corruption and criminal acts can occur and end the use of anonymous shell companies to facilitate these activities,” he said.
Mustapha said that President Muhammadu Buhari in 2016 pledged to establish “public central register of company beneficial ownership information in the country” at the joining of the OGP.
The OGP is to tackle corruption through putting in new laws as well as improve existing laws to strengthen institutions and prevent incidences of corruption.
He said this was to ensure full implementation of the open contracting data standard principles in the award of government contracts and strengthen assets recovery legislation.
Mustapha said to help stakeholders in implementing the beneficial ownership register, a team from the Federal Ministry of Justice, CAC, the Nigeria Extractive Industries Transparency Initiative (NEITI) understudied the United Kingdom open register of people with significant control in companies.
It study availed them the opportunity to understand the OGP legislation, systems and processes guiding its development.
Mustapha said it was then realised that Nigeria needed to review its Companies and Allied Matters Act 1990 to provide legal authorisation to collect information about the beneficial owners registered entities.
“ We immediately set out process of amending the law by repealing and re-enacting the Companies and Allied Matters Act 2020, which was signed into law by the President in 2020.
“ CAC also revised the Annual Returns Form to provide a section with which registered companies will disclose beneficial ownership information in their filling with the commission,” he said.
The Minister of State, Budget and National Planning, Prince Clement Agba, said to ensure that funding challenge for the development of the register was minimised, the Global Support Unit of the OGP through the Multi-Donor Trust Fund, awarded a grant of 400,000 dollars to Nigeria.
Agba said that the grant, which was being managed by the World Bank, was at the final stages of documentation for the release of the grant.
“ OGP with the support of development partners and working together with the World Bank, established the OGP Multi-Donor Trust Fund (or the MDTF) to support World Bank client countries and local entities that participate in OGP or intend to become eligible to participate in OGP.
“With the support from stakeholders the MDTF provides awards on a competitive basis to national and local participants with a multi-stakeholder forum and to partners who will support the learning and building of evidence of impact of OGP commitments,” the minister said.
Mr Shubham Chaudhuri, World Bank Country Director, said that greater public sector transparency and accountability was key towards building trust among citizens, investors, creditors and within the tiers of government.
Chaudhuri said the world bank had been a steadfast supporter for building inclusive institutions that were responsive to the needs of citizens.
“ Strengthening governance and institutions is one of the pillars of the current World Bank country’s partnership framework with Nigeria.”
The theme for the year’s programme is “ Nigeria’s Road to Beneficial Ownership Transparency”.