Bill on franchise regulation passes second reading at NASS

Members of the House of Representatives at plenary Tuesday, passed through second reading a Bill seeking for an act to create a framework for the regulation of franchising and to guide the relationship between franchisors and franchisees in Nigeria.

The Senate bill, which was sent to the House for concurrence, was opposed by minority lawmakers.
The sponsor, Senator Adetokunbo Abiru, had in his lead debate at the red chamber last year, urged Nigeria to regulate the franchise system in the country in accordance with global best practices.

His argument was premised on efforts to enhance the economic development of the country.

According to him, Nigeria has no law that regulates franchising, hence franchisors who did not register their trademarks prior to granting a franchise maybe exposing Nigerian franchisees to possible litigation.

But when the bill was presented for second reading at the House by Deputy Majority leader, Hon. Peter Akpatason, a member of the main opposition party, Ossai Nicholas Ossai (PDP, Delta), opposed the bill, saying issues the bill seeks to solve is already covered by Companies and Allied Matters Act (CAMA).
Corroborating Ossai’s view, the Deputy Minority Leader, Hon. Toby Okechukwu (PDP, Enugu), also suggested that the leader of the house should address the lawmakers on the economies of it.

However, the Speaker, Hon. Femi Gbajabiamila, told Ossai to furnish the lawmakers with details where CAMA has provided for franchise agreements and then bring a motion for recision.

Gbajabiamila thereafter put the bill to a voice vote, and it was passed.

Credit: ThisDay

Leave a Reply

Your email address will not be published. Required fields are marked *