Garba Abubakar and the Promotion of Efficiency, Productivity and Service Delivery at the Corporate Affairs Commission

Garba Abubakar and the Promotion of Efficiency, Productivity and Service Delivery at the Corporate Affairs Commission

They say the public service is the engine room of any country and that is true. If it stops functioning well, whatever plans a Government has will never be achieved. Alhaji Garba Abubakar Registrar-General/CEO, Corporate Affairs Commission (CAC) knows this very much, and he has made maintaining the integrity of service delivery his watch word.

Since his appointment by President Muhammadu Buhari in January this year, he has strengthened efficiency and improved the work ethos in that capitalist institution of the Federal Government. Under his watch at CAC now, regardless of what is on the calendar, service to the public should be provided unhindered to ensure that the Ease of Doing Business policy of the Federal Government is achieved. In this way the CAC will be able to best play its mandate role to help lead the private sector to the economic transformation of the country.

Public servants, over time, have always been challenged to improve their efficiency and effectiveness. That means they should learn to listen, look around with an open mind on what the society/community goes through daily. These are parts of what guide Abubakar’s activities at the CAC. Only if one goes out and experiences the hardship then you will feel and understand the people’s cry for service. Like they say, “you have to be in it to feel it”.

Abubakar listens and works with stakeholders, in order for the CAC to better able to help drive productivity in different industries in the country, leading to economic transformation.

Of course, Economic transformation of Nigeria depends on a transition from the mono-source oil economy to a diversified and competitive economy that is heavy on manufacturing and exportation of goods and services. The Corporate Affairs Commission regulates and supervises the formation, incorporation, registration, management, and winding up of companies. The responsibility also extends to registration of business names, limited and unlimited liability companies, incorporated trustees (communal, religious and charitable associations). The discharge of these functions has much to do with how well Nigeria with economic transformation and the role of the Corporate Affairs Commission in the Ease of Doing Business in the country.

 In the past the CAC seemed to have fared badly in leading the private sector to transform the economy because its ability is circuitously dependent on the strength of the nation’s economy which is ‘under the weather’.

Starting the business was quite straightforward, a clear testament of where Nigeria stands today with regards to its global ranking in Ease of Doing Business, published annually by the World Bank. What wasn’t easy though was choosing a name, to our own surprise, and the costs involved.

Choosing the name is probably our own fault for naively presuming that we will pick any name within a certain theme, and be fortunate enough to find that name available. We figured it out eventually, without having to go for any of our names, or that of a poet or a philosopher because of the push for high-sounding names.

The first thing to be done was to remove the then steep entry cost, as getting the trading and business registration used to cost a lot and take a long time to be processed. This is, of course, not taking into account costs that could come up in the future as more individuals are employed by the business. Then to be able to open a business was tough, and many people found this a bit bizarre and out of place. Here’s why.

One, if government is really ready and like to support entrepreneurship and the development of a vibrant environment for small and medium enterprises (SMEs), high start-up fees were surely not the way to go. The higher those business start-up fees were, the more they discourage individuals from starting their own businesses, encouraging them instead to find a job, and most probably in the public sector.

In addition to that, high start-up fees could affect the nature of the business that one would get into, getting into a business with the ability to make a quick money and recover those high start-up fees. For instance, getting into food and beverages (F & Bs) instead of manufacturing.

Cost of a name

Now for Nigeria to stay entrepreneurially competitive, that high start-up cost of business registration had to go. In many countries like the UK, for instance, start-up costs are negligible. The idea is that those start-ups should not be squeezed out of business before they have even started, especially when there are other costs to take care of, including rent and payroll. As such, governments make it easy and cheap to start a business, realizing that doing so will generate additional economic activities and tax revenue for government.

That is, those businesses will create jobs and will obtain loans to expand their business or even expand into other sectors, which by itself fuels additional economic activities. Governments are, therefore, better off allowing those businesses to actually grow with fewer start-up financial obligations in their first years, then make more money from income-connected corporate taxation.

And with the coming of Abubakar,  CAC   swiftly moved away from burdensome start-up registration fees . then corporate taxes will kick in. With growing businesses and incomes, government will generate higher government revenues than would, ever.

As an institution whose mandate it is to lead the private sector to transform the economy, the CAC collaborates with critical stakeholders, such as the different chambers of commerce as well as different professional bodies, holding dialogues with them on topical issues that concern its mandate. This is particularly in regard to the Ease of Doing Business protocols. One of such was the one-day stakeholders’ forum  the institution held with  the Council of the Nigerian Bar Association Section on Business Law (NBA-SBL)  in April this year.

Speaking during that one-day stakeholders’ forum, Ayuli Jemide, vice-chair NBA-SBL said the Section, which is the specialisation arm of the NBA, would constantly engage the CAC because the CAC is the company house where all the businesses are registered and for business lawyers, it is the hub for businesses.

He was upbeat, saying that beyond the collaboration, he was hopeful that a new Companies and Allied Matters Act (CAMA) would bring changes that would help the ease of doing business, as he expected both organisations to engage more on how to make sure that the law is not just signed but the intent of the law is put into operation.

Speaking on the Section’s expectations from the CAC, he said, “The need to go digital for CAC is urgent for us and has been there for several years. We have been talking about deploying technology to enhance efficiency and it has been a very slow-moving train but with the current registrar general (RG) and the new chairman, we see a stronger will to get achieve this and to cross the finish line.

“The NBA-SBL will engage and collaborate more with the commission, to try to raise money by way of grants and endowments to achieve these objectives on a private basis and see how we can roll this out.”

Chief Ademola Seriki, chairman of CAC, observed that the NBA-SBL and the CAC are creating enormous awareness for the public. He lamented that a lot of people meddle with files inside the CAC office and people point accusing fingers at CAC, stressing that it is high time both bodies create awareness so that people can know the importance and position of the law.

Seni Adio, SAN, Chairman of the NBA-SBL, who spoke earlier on reform initiatives by the NBA-SBL said, declared that lawyers were very much involved with respect to the enactment of the Companies and Allied Matters Act. He pointed out that this is a very revolutionary bill and once that bill is signed by Mr President it will further help ease of doing business in Nigeria.

“The NBA-SBL has always been at the forefront in trying to enhance the proficiency of commercial lawyers in Nigeria. SBL advocates for lawyers to become specialists, so that people become experts in their given areas of work and can provide legal services efficiency with expertise in the commercial space.”

Speaking during a fireside chat with the vice-chair of the NBA-SBL, Mallam Abubakar said he took over as the Registrar-general, he had identified areas that require urgent reforms.

“We are currently doing a review of our checklist and guidelines to make it more business-friendly and to remove unnecessary bottlenecks that slow down our processes and procedures. So, what we have done is that most of the requirements that were alien to the law have been removed.”

This is true indeed as it will help many small companies come on board. Equally The importance and growing influence of the digital space is also one aspect that all government institutions  and business players need to consider. Jumping on this trend, CAC is committed to delivering omni-channel services that provide potential business owners with consistency and continuity across all interactions. it has enhanced and implemented various digital tools to make SMEs’ online registration journey as convenient as possible.

There is no doubt that people have started seeing significant developments across the region in 2020, however, technology and innovation are unlocking a host of opportunities to enhance sustainable registration process, improve time and elevate entrepreneurs experiences and confidence – ultimately leading to sustained growth in different industries.

Another area of innovation from the Corporate Affairs Commission is the action it took last June to further remove barriers for business start-ups.  The recent step taken by CAC management to ensure that business start-up don’t go through the inconvenience of spending months going to the Federal Inland Revenue Service, looking for how to get Tax Identification Number is commendable, indeed as it will help businesses.

The Corporate Affairs Commission says certificates of registration of business and non-business entities will be issued with Tax Identification Numbers. The Commission in a statement in June said the development conformed with the Ease of Doing Business Initiative being promoted by the Federal Government. It explained that customers won’t need to apply separately for tax numbers from the Federal Inland Revenue Service.

The statement read, “This is to inform our dear esteemed customers that as part of the Ease of Doing Business Initiative, Certificates of Incorporation of Companies registered under Part A of CAMA will henceforth carry Tax Identification Numbers issued by the Federal Inland Revenue Service.

“This has dispensed the need for companies to apply for the issuance of Tax Identification Numbers from the FIRS after incorporation.”

This particular action by the CAC will provide much relief for business start-ups.

But why is Alhaji Garba Abubakar able to do things with so much passion to deliver on CAC mandate on Ease of Doing Business? He has been around at the CAC for a while, holding a strategic post.  He joined the CAC in April, 2004 as Principal Manager Compliance and rose through the ranks to become a Director in January, 2016. He was Special Adviser to Bello Mahmud the then Registrar-General of CAC between August, 2010 to October, 2017.

 Before joining the CAC, Mr. A.G Abubakar worked with the Nigeria Social Insurance Trust Fund (Formerly National Provident Fund) as Compliance Officer between 1991 to 1993. He also worked at NICON Insurance between June, 1995 to December, 1997.

A lawyer by training, he hails from Bauchi State. He was born on 14 October 1966. He attended the prestigious Ahmadu Bello University, Zaria. He was called to the Nigerian Bar in 1989.  He is a Member, Governing Council Nigerian Bar Association Section on Business Law, March 2017 – date, Member, Inter-Agency Committee Against Money Laundering and Terrorists Financing, 2007-date, CAC Focal on open Government Partnership, amongst others. He is also a Member, In-House Committee on the Review of the Companies and Allied Matters Act (CAMA)

 Abubakar is a great model to public servants on need for efficiency and productivity. Another area that should be improved on is the punctuality and productivity of public servants. Abubakar is straight up with what he expects of CAC departmental heads and that he does not tolerate laxity. The message, most times, is simple and clear, shape up or ship out.
To him the Nigerian habit or style of getting things done should stop. Starting work very late, frequent absenteeism, unnecessary breaks, bad habits and culture and abusing ones position for personal benefits should come to an end. Work ethics refer to a basic set of moral values associated with the way work is done whatever its nature or status.

The departmental heads, by now, should know what they want to achieve so it’s now about planning to achieve their target with the limited financial support and resources.We need public servants to be smarter in managing the limited funds to deliver services, even to remote areas.

If they copy Abubakar’s work etho, they would not just believe in Nigeria, but also, demonstrate their honesty, integrity and accountability at the workplace. For hardworking and committed people contribute to the country’s progress to the best of their ability. The challenge is now on everyone, especially those entrusted to deliver, to learn from Alhaji Abubabakar at the CAC and continue to chart and develop a new part for service delivery.