ICANBusiness LawNigerian Legal System and Sources of Law2024

The Companies and Allied Matters Act (CAMA) 2020 is a primary legislation and a key source of commercial law in Nigeria. In the context of the Nigerian legal system and sources of law, subsidiary legislation made pursuant to CAMA 2020 by the Corporate Affairs Commission (CAC) derives its validity from which legal principle?

AThe doctrine of legitimate expectation, which binds all regulatory agencies to act consistently
BThe principle of delegated legislation, whereby Parliament delegates law-making powers to an executive body within defined limitsCORRECT
CThe doctrine of judicial precedent, which requires the CAC to follow prior regulatory decisions
DThe principle of customary international law, which recognises the regulatory authority of corporate registrars globally
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Why the answer is B, and why the others tempt you.
Subsidiary legislation, also known as delegated or subordinate legislation, is law made by a body other than the legislature under authority conferred by an enabling Act (parent statute). CAMA 2020 confers specific powers on the Corporate Affairs Commission and the Minister to make regulations, rules, and orders to give effect to the Act's provisions. The validity of such subsidiary legislation depends entirely on whether it was made within the scope of the powers granted by the parent Act; any regulation that exceeds those powers is ultra vires and void. The doctrine of legitimate expectation, judicial precedent, and customary international law are legally distinct doctrines that do not provide the basis for the validity of subsidiary legislation.
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