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Current Affairs & The Law

Highlights from The Electoral Act 2022

The Electoral Act 2022 was assented to by President Muhammadu Buhari on the 25th February 2022. The Act repealed the Electoral Act of 2010 that governs all Federal, State, Area/Local government elections in Nigeria which in no doubt a great step towards the 2023 general election to ensure smooth transitioning.

Here are the major highlights of this Act;

  1. This new act allows for financial autonomy unlike the 2010 Act where before INEC gets funding, approvals have to come from the Minister of Finance. In this new Act, the commission gets funding directly from the Federal Government.

This new act also establishes the Independent National Electoral Commission Fund to be paid directly by the Federal government to the commission to enable them discharge their functions and money shall be paid to the commission a year before the conduct of the general election.

  • This new Act allows the use of electronic devices and technological devices like card reads etc. during accreditation process during elections. This new Act provides for electronic transmission of election results in accordance with the way and manner prescribed by the Commission.
  • This new Act introduces the controversial Section 84 (12) that disallows political appointees from participating in any convention or congress held by any political party either as a voting delegate or as an aspirant for the purpose of nominating a party flag bearer at the general election. In plain terms, no political appointee is allowed to vote or be voted in party primaries, hence they are to abdicate such position before the conduct of the party primaries.  
  • This new Act empowers the presiding officers at any polling unit to cancel the election result in a polling unit where the number of votes counted exceeds the number of accredited voters in that poling unit.
  • Unlike the 2010 Electoral Act that prescribed that parties should submit the names of party flag bearers who participated and emerged victorious in the party primary election not later than 60 days before the conduct of the general election, this new Act gives the window of 180 days for the party to submit the names of the emerging candidate to the commission.
  • This new Act ladens on the commission to not later than 360 days before the days scheduled for the election to publish a notice in each state constituencies of the Federation inclusive of the Federal Capital Territory detailing the date of the election and the place where nomination papers will be delivered to. This provision takes a distal from the provisions of the 2010 Electoral Act which provides for a 90 days period before the conduct of the election.
  • This new Act extends the days for public campaigning for a candidate and his/her political party from the 60 days from the day of the election and should end 24 hours before the election day as obtained under the 2010 Electoral Act to 150 days from the day of day of the election and should end 24 hours before the election day.
  • With respect to matters pertaining to the death of a candidate, this new Act provides that where before the commencement of polls a candidate dies, the election shall be postponed and shall commence within 14 days of the candidate’s death.Where a candidate dies after polls, but before announcement of the final result, the election will be suspended for not more than 21 days.Where the election is for a legislative position, the election shall be conducted afresh and the political party whose candidate died may, if it intends to continue to participate in the election, conduct a fresh primary within 14 days of the death of its candidate and submit the name of a new candidate to the Commission to replace the dead candidate.For gubernatorial, presidential and FCT area council elections, the running mate shall continue with the election (as the new candidate) and nominate a new running mate.
  • Unlike the provisions of the 2010 Electoral Act where the decisions of the Returning Officers with respect to declaration of scores of candidates, return of candidates, void votes, unmarked and rejected ballot papers etc.  can only be subject to the review by the court or an election tribunal however, this new Act empower the commission to also review the decisions made by the returning officers.
  • This new Act raised the standard for data keeping and management as it provides for ways of keeping the Register of Voters at the National headquarters and other locations in formats like the mundane manual and hard copy format and also the introduction of the electronic format in its central database location. The provision takes a distal from the 2010 Electoral Act that only allows for the manual format.

CONCLUSION

Considering the provisions of this new Act, it is safe to say it is a laudable introduction to the right direction of electioneering process. This new Act can be described as and home-made and home-grown Act because the provisions of the Act are actuated to solve the mischief and anomalies of the 2010 Electoral Act that led to prolonged litigation. This Act will be put to the litmus test objectiveness in the buildup of the 2023 election like the party primaries and the 2023 general election.

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Current Affairs & The Law

#OPINION: CAN THE PRESENCE OF THE ATTORNEY-GENERAL IN POLICE STATIONS ELIMINATE HOLDING CHARGE?

Man in prison hands of behind hold Steel cage jail bars. offender criminal locked in jail.

Sadly, holding charge is a daily reality in Nigeria’s criminal justice system despite several courts’ decisions to the effect that the practice is unconstitutional and unknown to our criminal justice system. Prevalence of this practice suggests attempts by the police, other law enforcement agencies even the Attorneys-General at forcing it down our throats.

Holding charge is simply a practice where a person accused of an offence which a magistrate court does not have jurisdiction to try is brought by the police or other law enforcement agents before the magistrate court for the purpose of being remanded in the prison pending conclusion of investigations or the issuance of the Director of Public Prosecutions’ (“DPP”) advice for him/her to be subsequently charged/arraigned before the appropriate court[1].

I usually wonder why magistrate court that will readily decline to entertain a civil action where it lacks jurisdiction will entertain a criminal action when it lacks jurisdiction despite fundamental rights being at stake?

In an attempt to arm-twist the courts’ decisions to the effect that holding charge is unconstitutional and a violation of the accused’s right to personal liberty, the legislators both at the federal and the state levels have through their respective administration of criminal justice laws made provisions to “legalise” holding charge. For example, Sections 293 to 299 of the Administration of Criminal Justice Act 2015 (“ACJA”) gave the magistrate courts power to remand an accused in custody pending when appropriate charge will be brought before the appropriate court with jurisdiction or pending DPP’s advice. Sections 264 to 266 of the Lagos State Administration of Criminal Justice Law 2011 (as amended) also provide for this procedure, and Section 306 to 312 of the Administration of Criminal Justice and Other Related Matters Law of Ogun State 2017.

Though these provisions set out time limits for the remand order to subsist, reality has shown the time limits only exist on paper, and that these provisions have been used as weapons for violations of accused persons’ rights to personal liberty, fair hearing and the right to presumption of innocence. Needful to mention the fact that purported derogation of the right to personal liberty which these provisions attempt to achieve will even fail the test set in Section 45(2) of the 1999 Constitution (as amended).   In a matter, a suspect is detained in a police station for several weeks for the purpose of investigation. The police officers afraid of running out of time, approach the magistrate court despite knowing full well that the magistrate court does not have jurisdiction to try the offence, to “validate” further detention of the suspect. In some cases, investigations have been concluded but these police officers will still file a charge at the magistrate court for a remand order to further keep the suspect in prison custody, then duplicate the case file and send to the office of the Attorney General for the DPP’s advice. From the beginning, the police officers and the magistrate know that for such an offence, the appropriate authority to consider and commence criminal proceedings is the office of the Attorney General. The “drama” seems like the police buying time for the prosecution, specifically the Attorney-General at the expense of a suspect’s right to personal liberty and other rights.

After obtaining the remand order from the magistrate court, an accused can be in prison custody for another seven (7) months even more without being arraigned in the appropriate court. Unfortunately, the fact that a person’s liberty is at stake is not enough to expedite the process for issuance of the DPP’s advice. After all, any suspect must have met other suspects on the queue for the DPP’s legal advice. It is even worse where the DPP’s advice is eventually issued after several months that it states there is no prima facie case against the accused. In most cases, accused persons in these shoes do not look back to enforce their fundamental rights which have been breached. As we are aware, media reports have shown cases where suspects are being accused of offences they never committed, where police arrested persons unjustly and eventually hooked them with holding charge to the extent that some accused who have no business in being in prison have been forgotten there.  

In fact, a look at some proofs of evidence will show a reasonable man that the charges preferred are dead on arrival, but state’s resources and time will still be expended pursuing shadows. The accused will be made to suffer in detention for months even years. Some will even have holding charge hanging around their necks for years. It is even more painful that despite the provisions of the Constitution and decisions of superior courts declaring holding charge unconstitutional, the Magistrates faced with making a remand order despite lack of jurisdiction to entertain the charge will still go ahead to do so. This is despite the fact that the magistrate courts are also courts of law established by statute to apply the law to cases.

On what is expected of magistrate courts in this circumstance, the Court of Appeal in Charles v COP Abia State[1] stated thus:

“…Any accused who has been arraigned before a Court of law is the property of the Court and not that of the prosecuting authority. As such the Court must be watchful in ensuring that the rights of the accused are not trampled upon by prolonging his detention in the course of prosecuting his case. Doing this will negate the constitutional safeguards of the rights of the accused to trial within reasonable time…Thus as rightly observed by his lordship in the judgment which view I also subscribe to, no Court should shy away from calling out any authority which attempts or engages in acts that are in clear violation of the rights of the citizens…” Per Ibrahim Wakili Jauro,  JCA.

Thus, to address these worrisome circumstances especially eliminating the practice of holding charge which is still prevalent, the following are recommended:

1. That law officers from the offices of the Attorneys-General be stationed in police stations. They are to work with the police on every criminal complaint, screen out frivolous complaints and give legal advice. Where a suspect is arrested, legal advice should be issued timely pursuant to which the law officer in the police station will file an information at the appropriate court where necessary. This is like getting the Attorneys-General closer to the beginning of the road of criminal justice. The states should employ more competent lawyers if short of man power to carry out this task. With a law officer at the police stations, DPP’s advice should be issued on time and appropriate charge preferred at the appropriate court. This will even give the law officer opportunity to meet and interrogate the witnesses at the earliest time.

2. Based on the fact that DPP’s advice is to state that there is a prima facie against a suspect, a period of about 24 hours should be set for the issuance of same, and an information preferred at the appropriate court within 24 hours after issuance of the DPP’s advice. Where there is no prima facie case, the suspect is let go at the police station rather than being let go after spending months in prison based on a holding charge.

2. The legal department of the Nigeria Police Force should work together with officers from the offices of the Attorneys-General stationed in the police stations in the screening processes, timely drafting and issuance of legal advice. After all, the legal advice is to state whether or not there is a prima facie case against the suspect on the basis of which he will be charged before the appropriate court if necessary which should not be difficult to do.

3. Officers of the National Human Rights Commission should be following up at the police stations and magistrate courts to monitor cases where holding charge is being practiced and those involved in the illegal procedure should be called out and sanctioned.

4. Civil Society Organisations should be involved in this process particularly monitoring criminal cases brought to the magistrate courts.

5. States’ judiciary should ensure Magistrates carry out their tasks and apply the law without fear or favour. Magistrates should be allowed to uphold the Constitution, decisions of higher courts on holding charge and fundamental human rights above the administrative requirements expecting them to entertain holding charge in their courts.

6. There should be increase in manpower and training of persons involved in the criminal justice system from the point of search, arrest till the end of the process in all cases.

These I believe will help decongest the prisons and prevent wastage of public resources to remand suspects in prisons who at the end DPP’s advice will find no prima facie case against. Practicality of these suggestions should be considered and adjustments made where necessary to move our criminal justice forward.

#opinion


[1] In Charles v COP Abia State (2021) LPELR-56547(CA). Oguji v Divisional Police  Officer C/O Ojo Police Station, Ojo, Lagos State & Ors (2021) LPELR-56044, Anaekwe v COP (1996) 3 NWLR (Pt. 436) 320, Enwere v COP (1993) 6 NWLR Pt. 299) 333.

[1] (2021) LPELR-56044 (CA).

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Current Affairs & The Law

ARE YOU BEING ABUSED?

What to do when you are being Abused Physically, Emotionally or Psychologically?

Domestic violence for avoidance of doubt includes battery, beatings, torture, starvation, economic abuse & exploitation, stalking, denial of basic education, acid bath, rape and consequently death. This typically inflicted by parents on child, siblings, domestic staff etc.

Intimate partner violence on the other hand is same torture but between lovers, either married, live-in or simply dating.

Here are a few shocking truths to note

  1. The statistics in Nigeria is one in every three women suffer from domestic violence.  You are not alone and it is not peculiar to just you.
  2. In 2021, The Lagos state domestic and sexual violence response team (DSVRT) dealt with 2,584 domestic violence reported cases. (We are pretty sure that the unreported cases outnumber the reported ones).
  3. Every domestic violence case is a potential murder case (Every time you get hit, your partner is guilty of attempted murder).
  4. Anyone with interest can bring a complaint on behalf of the victim and this includes teachers, social workers, Nigerian police force, organization, health service provider, counsellor. (People can report on your behalf)
  5. The Law protects not only marriages but also cohabiting relationships (so you can get protection from a boyfriend, girlfriend etc)
  6. Emotional Abuse is a CRIME and it is punishable with imprisonment or fine.
  7. Emotional Abuse includes constant criticisms, accusations & blames, verbal & psychological abuse. (If there is a pattern of degrading or humiliating conduct including repeated insults, ridicule or name calling, repeated threats to cause emotional pain, then you are being emotionally abused).
  8. A person’s mental health comes into question when the only way he resolves conflict is through violence and aggression. (You may be living with a mad man or woman literarily)
  9. Children who grow up in homes where the parents practice intimate partner violence will most likely grow up to perpetuate abuse. (you can turn your children in to monsters by doing nothing about the violence in your home)
  10. The Lagos state government has set up a specific agency that protects domestic violence victims. They are called the Lagos state Domestic Sexual and Violence Response Team
  11. You can get a restraining order under the law against an abuser or stalker.
  12. If you are in Lagos and you need help visit www.dsvrtlagos.org or call 08137960048
  13. If you are in Anambra, Bauchi, Ekiti, Enugu, Kaduna and Oyo, send email to info@naptip.gov.ng or call 080255627847
  14. If in any other state, pls contact the police force, the Nigerian Police have specific desks that will deal with issues of domestic and sexual violence.
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Current Affairs & The Law

WHAT TO CONSIDER BEFORE YOU INVEST YOUR MONEY- COURT OF APPEAL IN OCHEDI v. CBN(2018).

In Nigeria, the commercial space has over time been polluted by the nefarious activities of many acclaimed “Investment Companies” promising huge return on investment on a monthly basis. The modus operandi of these companies is to call on the public to invest monies with them under the guise of trading in a profitable venture with promises of robust Return of Investment (ROI) periodically, most times it is always on a monthly basis. To wear a “Legal Facade” to this mushy transaction, the companies execute agreements with their numerous clients. These agreements are nomenclature differently depending on the issuing company, it is mostly termed Memorandum of Understanding, Investment/Business Agreement etc.

However, the Court of Appeal in the case of Mr. Noah Ochendi & Ors V. CBN & Ors (2018) LCN/11930 affirmed the decision of the lower court by dismissing the Appeal on the ground that the court does not have the jurisdiction to enforce an illegal contract.

The appellant in this case are group of investors who invested with Wealth Zone Limited, they collected their capital and interest for sometimes until the company had some regulatory and compliance matters with the Security and Exchange Commission that declared the activities of Wealth Zone Limited as an Illegal Wonder Bank/Fund Manager operating in Nigeria and their accounts were frozen. The freezing of the account made it impossible for the company to make payments and fulfil their obligations under the investment agreement. Aggrieved investors approached the High Court to enforce their rights under the investment agreement and also seek the intervention of the court to ensure that Wealth Zone Limited pays back their investment capital.

The High Court in giving its judgement stated that it lacks the jurisdiction to enforce an illegal contract. The court stated that Wealth Zone Limited is not licensed to carry on the business to which the claimants invested their money in hence, the said transaction is void ab initio. The High Court stressed that the activities of Wealth Zone Limited runs foul of the provisions of Sections 58 and Section 59 of the Bank and Other Financial Act (BOFIA) that provides mandatorily that unless a company is duly incorporated in Nigeria and obtains all other valid licenses, it lacks the authority and capacity to collect money from the public for the purpose of investment or expansively, carry-on financial business in Nigeria.

Dissatisfied with the decision of the High Court, the claimants now Appellants, approached the Court of Appeal to set aside the decision of the High Court and also enforce their rights under the Investment Agreement. The court wholistically considered the decision of the lower court and the provisions of Bank and Other Financial Act (BOFIA) and affirmed the decision of the lower court stating that the monies the Appellants seeks to recover are in respect of transactions i.e financial business of soliciting for and accepting money from the general public as deposits for profit, by a company that did not have a valid license on such business prohibited by the provision of BOFIA and so illegal. The apex court cited the maxim of Extup causa Oritur non actio which means, “out of and illegal cause, no action can arise.

CONCLUSION

From this write up, the attitude of the civil court can be gleaned with respect to investment with unlicensed companies. Any document executed and signed evidencing the transaction, rights and obligations with an unlicensed company is void.

It is therefore advisable that before you venture into any contract with any investment company or commit your finances, you seek the services of a Legal Practitioner to help you do the necessary due diligence so as to validate the status of the company and tell if truly the company has the requisite license to transact in the business of investment as represented.

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Current Affairs & The Law

FLASH POINTS FROM THE NEW FINANCE ACT 2021

The Finance Act was signed into law by Muhammadu Buhari, GCFR President of the Federal Republic of Nigeria 31st Day of December, 2021. The Finance Act 2021 amended 13 different tax and fiscal legislations to ensure that all loose ends are fastened to ensure Nigeria does not continue to lose more revenue and ensure a robust capital based in meeting present and future budget accomplishments.

Here are some of the highlights of this Amended Act;

  1. The law mandates that when you sell your shares in any Nigerian company and you make gains, you are expected to pay a tax of 10% to the government.
  2. The law allows the government through the new Digital Tax law to be promulgated soon to tax companies that provide digital services in Nigeria but are not registered in Nigeria like Facebook, Twitter, Apple Music and other to pay tax.
  3. Oil companies are to pay tax from profits earned in the upstream, midstream or downstream petroleum operations.
  4. The Act state that for a Real Estate Investment to be regarded as one, it must be registered with the security and exchange commission.
  5. The FIRS is empowered by this Act to assess, collect and enforce the payment of the Nigerian Police Trust Fund Levy.
  1. Any company that is not registered in Nigeria but supplies goods to its Nigerian customers must obtain a Tax Identification Number (TIN) and pay Tax.
  2. A tax of N10 per litre has been imposed on non-alchoholic, carbonated and sweetened beverages. This means there would be an increase in price of soft drinks soon.
  3. Banking, Mobile telecommunication, ICT, Aviation, Maritime, and Oil & gas companies with turnover of N100 Million are to pay Science and Engineering Levy of 0.25 of their profit. This explains the increase in Airline ticket price, data subscription and other services.
  4. By this Act, only the FIRS can collect tax and levies on behalf of the Federal Government of Nigeria and its agencies.
  5. FIRS staff must treat confidential the details of all tax payers and where this is breached, they can be sued for violating your right to data privacy.
  6. This Act allows the government take loans provided the loan is gotten at low interest rates with flexible payment periods.                                        

CONCLUSION

The provisions of this Act further reiterate the commitment of the government to ensure the realization of fiscal revenue to help in budget implementation to meet modern yearnings for developmental achievements in Nigeria. It can be gleaned from the provisions of this Act that there are so many increments in taxation percentage and also the Nigerian government by this act ensures that no revenue is lost from businesses and activities carried on by non-resident company providing data services.

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Current Affairs & The Law

BASICS OF THE LAGOS STATE RENT TO OWN SCHEME

houses

This scheme is better known as Lagos State Home Ownership and Mortgage Scheme. It is basically aimed at providing affordable and convenient apartments for Lagos residents with a legitimate source of income, to enable them pay in instalments just like mortgages that operate abroad. This scheme was initiated by the former Governor of Lagos State in person of Akinwunmi Ambode who laid the blue-print of the scheme to which the current Lagos State Government Governor Babajide Sanwo-olu is making a reality. The scheme is administered by the Lagos State Ministry of Housing. 

The scheme set as beneficiaries, all Lagos State residents with a pliable source of income irrespective of your tribe, state of origin, religious, political leanings or social strata. This unbiased scheme will have as priority Civil servants in Lagos State ministries and parastatals but credence will also be given to other applicants. The beneficiaries are; salary earners with minimum monthly net pay of ₦70,000.00, self-employed engaged in a productive vocation for a reasonable time, for example business owner, Founder, Director, Chairperson or President of such business/enterprise. Professionals that can be engaged as consultants like IT, HR, Medical Doctors, lawyers, realtors, Accountants, Stockbrokers etc.

CONCLUSION

This scheme is a laudable one, a prayer answered to many Lagosians who believed considering his/her income and indigeneity, owning a property in Lagos will simply be a mirage. The scheme is capable of living up to its expectation and surrounding realities if it is done objectively devoid of nepotism and favoritism from all quarters.

Olympus Law Partnership

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Current Affairs & The Law

PDP V DEGI-EREMIENYO: LEGAL PROCEDURE FOR A CHANGE OF NAME IN NIGERIA

Generally, a name is a person’s identity by which he/she is known and it is the right of every individual to have a name. In fact, the Child’s Rights Act, 2003 provides that every child should be given a name, and it is the name given to a child that will be used in the registration of the birth of that child thereby forming the child’s official records.  

Specifically, Section 5 of the Child’s Rights Act provides thus:

“(1) Every child has a right to a name and, accordingly, shall be given a name on his birth or on such other date as is dictated by the culture of his parents or guardian. (2) The birth of every child shall be registered in accordance with the provisions of the Birth, Death, etc. (Compulsory Registration) Act, 1992”.

However, as a child grows and becomes an adult, there may be need to change his/her name due to certain circumstances, like change in religion, marriage among others. It is pertinent to note that, until the Supreme Court decision in PDP & 2 Ors v Biobarakuma Degi-Eremienyo & 3 Ors (2021) 9 NWLR (1781) 274, persons who desires to change their names merely deposed to an affidavit of correction/confirmation of name and did a newspaper publication to that effect, in effecting the change of name. This procedure, the Supreme Court has held invalid.

The Supreme Court by the above-mentioned case has held that affidavit of correction/confirmation of name and newspaper publication are not enough to effect a valid change of name. According to the Court, for a person to validly change his/her name which will affect his/her official records like school certificates, such person must execute a deed poll and then proceed to the Nigeria Civil Registry to have the new name published in the official gazette.

Therefore, based on the said Supreme Court’s decision, it is advisable for persons who have changed their names without a deed poll and same being gazetted to do so in compliance with the law. Also, going forward, persons who desire to change their names subsequently for whatever reason(s) should ensure the procedure as set out by the Supreme Court is followed.

Olympus Law Partnership

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Uncategorized

THE LEGALITY OF ELECTRONIC SIGNATURE IN TRANSACTIONS IN NIGERIA

Before the age of computers, everything including contractual agreements were done on paper. So it is easy to see why we used handwritten signatures then as we scribble things to authenticate a document. But we have computers now and with the rapid growth of the internet and with more businesses are going digital/online, most documents are now digital.

This was more glaring during the physically distant COVID-19 situation, as almost all businesses were compelled to digitalized their operations, including documentation and contracts. Hence, there was no more printing, physically signing, scanning and/or hand delivery of documents.

With e-signature, document approval timeline is drastically reduced from weeks to hours or even minutes and also makes it so much easy to track, manage and store. E-signatures do everything that a handwritten signature can do, even better. They are more convenient. They allow parties examine and sign documents remotely from a computer or smartphones no matter where in the world. Once parties sign, the result is instant. No waiting for emails. Electronic signature services are very affordable for small businesses. There are also free Apps for it.

What is Electronic Signature?

In simple terms, electronic signature means a signature in electronic form. It can be a symbol or a security procedure evidencing a signatory identity such as a scanned image of handwritten signature, a biometric hand signature, a typed name at the end of an email/CV, a click to indicate consent online, as long as it creates an intention to enter legal relations and be bound by it.

It is a process that uses the computer to authenticate the signatory and certify the integrity of a document. E-signature can also include a digital signature, but strictly speaking, they are not the same. Just like handwritten signature, e-signature enables signatories to approve or agree on terms of an agreement.

The subtle difference between Electronic and Digital Signature

The terms “electronic signature” and “digital signature” are sometimes used interchangeably; however, they do not mean the same thing.

Electronic signatures are signatures which are affixed or incorporated in electronic contracts or documents through electronic or cryptographic means. Examples of e-signatures are a scanned image of handwritten signature, a biometric hand signature, a password, a typed name at the end of an email/CV, a click of “I accept” burton indicate consent online.

On the other hand, a digital signature is an advanced e-signature that uses cryptography to scramble signed information into an encrypted format and decodes it again for the recipient. It requires specialized third parties, known as certification authorities (CAs) to provide certification services for verifying the signer’s identity. Digital Signatures uses complex algorithms and certificate authorities to authenticate the signer along with the integrity of the document.

Is Electronic Signature Legal and Enforceable in Nigeria?

Yes, under Nigerian law, an electronic signature is legal and enforceable in a contract if all the elements that constitutes a valid contract (i.e. offer, acceptance, consideration, intention to create legal relationship and capacity to contract) are present. To constitute a binding and legally enforceable contract between parties, these elements must be present.

  • The Nigerian Evidence Act 2011 recognizes the use of electronic signatures. Section 93(2) and (3)thereof recognizes e-signatures and provides that where a rule of evidence requires a signature or provides for certain consequences if a document is not signed, then an electronic signature is permissible. However, the party relying of the e-signature must authenticate or proof that a procedure exists to verify that the electronic record is that of the person.
  • Section 17 of Cybercrimes (Prohibition and Prevention) Act, 2015 also recognizes the use of electronic signatures in Nigeria, they are court admissible & safe for general business use such as purchase of goods & any other business transaction, including, employment contracts, NDA, Privacy Notices, commercial agreements, consumer agreements, shall be binding. However, the Act provides exceptions to certain transactions that e-signatures are not allowed, such as wills, codicils and other testamentary documents; death and birth certificates, matters of family law such as divorce, adoption; Issuance of Court orders; legal requirement in affixing a signature, etc.
  • Section 101 of Companies and Allied Matters Act (CAMA) 2020 has now introduced e-signature in corporate transactions and filings. It provides that documents requiring authentication by a company can now be signed electronically by a director, secretary or other authorized officer of the company and need not be signed as a deed. Also, partly due to the physically distant COVID-19 situation, the Corporate Affairs Commission (CAC) now accepts e-signature in the registration and incorporation of business entities, as handwritten signatures are now uploaded through the Company Registration Portal (CRP) during registration.

This is in contrast with the previous Companies and Allied Matters Act (CAMA) 1990 that did not provide for the use of e-signature, hence, during registration, the necessary registration forms were printed for proprietors/shareholders to affix their handwritten signature, and then the form is scanned and uploaded to the CRP. This resulted in waste of time and resources and therefore longer period before a company is registered.

With this new requirement for e-signature, when registering a new company on behalf of clients, a lawyer should ensure to advise his clients to incorporate the use of electronic signature into the company’s constitutional documents (particularly its Articles of Association). While, due to the newness of CAMA’s provision on e-signature, it is not uncommon for most existing company’s constitutional documents to remain silent on the issue of electronic signature, it is advisable for such companies to review their articles before arranging for electronic execution. This is to ensure that the constitutional documents do not either expressly require the execution of documents in person or prevent the use of electronic signatures. In the interest of certainty, some companies may consider expressly authorizing the execution of documents electronically through a board resolution.

Benefits of Electronic Signature

  • It is instant, convenient and foolproof – the moment you apply your e-signature on a document is the moment you can move to the next step.
  • E-signatures also make signing documents easier. You could sign or request signatures from virtually anywhere in the world with your devise. No printing, signing and scanning.
  • The environment. Imagine tree felling for papers, the printing equipment contributes to carbon emission, etc.
  • E-signature is binding in most or all jurisdictions in the world.
  • E-signature is secure even more than wet ink-based signature. Wet signatures can be forged, but e-signature is secured by sophisticated cryptographic algorithms to prevent tampering as it maintains an audit trail to settle disputes.
  • E-signature is cost effective and mobile friendly.

DISCLAIMER:

The content of this article is intended to provide a general guide to the subject matter.

You may reach out to us about your specific circumstances.

Author

Obinna O. Agwu

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Uncategorized

The Case That Made Texas the Death Penalty Capital

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