As society evolves, its laws change to keep pace with developments. But this hardly happens in Nigeria. There are growing concerns that the Nigerian Law Reform Commission (NLRC), which is the body saddled with the responsibility of initiating the update of obsolete laws, has not lived up to expectations. Hobbled by administrative inefficiency, AMEH OCHOJILA reports that there is an urgent need for reforms to address numerous outdated laws hampering economic progress. 

Concerns are mounting on the need to reform obsolete laws in Nigeria. This stems from the necessity to modernise and simplify substantive and procedural laws to enhance economic efficiency.  The progressive development of these laws, through codification and the elimination of obsolete provisions, aligns with the agenda of the current Attorney General of the Federation (AGF) and minister of Justice, Lateef Fagbemi (SAN).
 
However, stakeholders observed that the authority responsible to kickstart the reform of some of these laws – the Nigerian Law Reform Commission (NLRC) is not keeping pace with this. 
 
Several outdated legislations, such as the NIMASA Act, NPA Act, Nigerian Shippers’ Council Act, and the Fisheries Act, have significantly hindered economic growth. These laws, in their current form, no longer reflect modern economic realities, creating bottlenecks that discourage investment and development.
 
For instance, the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Ports Authority (NPA) impose fees and charges in foreign currencies, which add unnecessary financial burdens on businesses. 
 
This practice has further constrained economic activities, reinforcing the urgent call for legislative reforms to foster a more conducive business environment.
 
Based on this, the federal government is now proposing through a bill to amend the NIMASA and NPA Acts for these agencies to collect charges in Naira, as part of an economic stabilisation bill aimed at prioritising the local currency and reducing strain on the foreign exchange market. This was disclosed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, during a briefing at the State House, Abuja.
 
This move is expected to reduce Nigeria’s dependency on the volatile Naira-USD exchange rate, easing pressure on the forex market.  In addition, these laws do not only impede economic growth by increasing foreign exchange demand, but they also limit the use of Naira in domestic transactions, and inflate business costs for local companies.    
 
These antiquated laws and regulations, estimated to be more than 21, not only stifle foreign investment but also prevent the nation from accessing and securing crucial foreign funds and benefits.
 
A Senior Advocate of Nigeria, Mohammed Ndarami, said the ongoing Domestic Crude Allocation (DCA) also lacks transparency.  According to him, since 2010, Nigerian four refineries have not functioned optimally, still they are allocated 445,000 barrels of crude oil daily.
 
This lack of disclosure and monumental losses are attributed to a myriad of obsolete laws that continue to hinder Nigeria’s economic progress and development. 
 
Former President of the Nigerian Bar Association (NBA), Dr Olisa Agbakoba (SAN) also believes that the Petroleum Industry Act (PIA) should be repealed for creating too many agencies with overlapping functions.  He argued that the law was created to allow those in power to fritter money away in connivance with the International Oil Companies (IOC). 
 
“How can section 64 of the PIA appropriate our federal revenue to the NNPCL? That section 64 of PIA allows the NNPCL to draw money outside the express provision of Section 62 of the 1999 Constitution, which says that all resources, whether taxed or not taxed, shall be paid into the federation account.   
 
“But section 64 of the PIA, which is a lower law to the Constitution, enables the NNPCL to draw out money, which is supposed to have come to the Federation,” he pointed out, adding that the country is losing huge revenue due to such provisions. 
 
Indeed, most of the antiquated laws and regulations currently in operation, are supposed to be tailored towards addressing the complexities of the current economic drives. 
 
Unfortunately, the NLRC, which is the key institution empowered to tackle these challenges of obsolete laws suffers from notable ineptitude.  Despite being set up in 1979, very little or no visible changes have come to the nation’s corpus of laws, confirming that they have not lived up to their expectation.
 
Today, Nigeria still has such laws like the Nigerian Educational Bank Act, Cap N102, LFN, 2004; Casino Taxation Act, Cap C3, LFN, 2004; Nigerian Railway Corporation Act, Cap N131, LFN, 2004, which sadly has provisions for penalties for offences committed under it which are ridiculous; Finance (Control and Management) Act, 1958; The Coins Act, Cap C16, LFN 2004 even when the use of coins is no longer in vogue today; Evidence Act, 2011; the Entertainment Tax Act, Cap 498, LFN 2004; Sales of Good Act, Hire Purchase Act, and the Nigerian Penal Code Act.
 
For instance, the Land Use Act of 1978 is argued to significantly hinder economic growth due to its restrictive land ownership provisions.  By centralising control of all land under state governors, the Act introduces bureaucratic delays and opportunities for corruption in land allocation. 
 
This centralisation limits private land ownership and the use of land as collateral for loans, which are essential for business expansion and economic development.   
 
Additionally, the complex and lengthy processes required to obtain land titles discourage both local and foreign investments, as investors need secure and easily transferable land rights.
 
The Act also impedes agricultural development, as smallholder farmers often lack secure land titles, limiting their access to credit and investment opportunities.   
 
This restriction hampers agricultural productivity and rural development. In urban areas, the inefficiency in land allocation and titling processes leads to informal settlements and unplanned urban sprawl, creating challenges for infrastructure development and service delivery.
 
Similarly, the extant Acts for both Nigerian Export Processing Zones Authority (NEPZA) and the Oil and Gas Free Zones Authority (OGFZA) are more than 20 years old and have been described by stakeholders as long overdue for review to make them relevant in an industry that has changed in many ways since the two laws were enacted. 
 
These laws are ambiguous, particularly the OGFZA, which has been the source of inter-agency conflicts for years.  Again, the OGFZA and the Nigerian Minerals and Mining Act, 2007, give large tax holidays and moderate benefits to foreign investors.
 
Other laws in the above group include the Export Prohibition Act, which forbids the export of some agricultural products such as cassava, yam, beans, maize and rice and further limits foreign investment in the agricultural sector. This law does not align with current contemporary economic realities and aspirations. 
 
There are also the Petroleum Act, the Petroleum (Drilling and Production) Regulation and the Petroleum Refining Regulations that have aspects that do not align with the provision of the Petroleum Industry Act, especially, in the areas of disparity in crude oil production ratio, accountability, and harnessing the prospects of the Production Sharing Contracts (PSC).
 
This law is believed to require urgent review to fix the loopholes in the Deep Offshore and Inland Basin Production Sharing Agreement that have consistently crippled government’s share of oil revenue. 
 
Also, the Nigerian Ports Authority (NPA) Act of 1954 represents an outdated legal framework that inhibits economic growth. Established as a monopoly, the Act vests all responsibilities for managing and operating ports in Nigeria solely to the NPA. This centralised control creates several barriers to economic development.
 
Ndarami noted that some of the Nigerian laws focus on the creation and maintenance of the Eurocentric models of exploitation, marked by a state of structural mechanisms that obstruct the growth of the economy. 
 
He said the laws rather serve the biddings of corrupt and exploitative political class. According to him, those laws have continued to become retrogressive and irrelevant, while the elites celebrate their conquest of the country. 
 
He argued that laws that promote expatriate quota, protected subsidies and tariffs, expatriates’ remittances, tax holidays, etc., have been used by the elites and power brokers to share in the spoil of the Nigerian economy to the detriment of the citizens. 
 
The lawyer explained further that the Statutes of General Application which refers to the body of laws that were in force in Britain on or before January 1, 1900 are still being relied upon as binding laws in Nigeria. 
 
He cited the Wills Act, 1881; Statute of Fraud Act, 1677 and the Conveyancing Act of 1837 as examples of how backwards we have sunk.  Ndarami suggested that the NPA Act should be reformed to allow for private sector participation and competition, as well as decentralising port management.
 
“Encouraging public-private partnerships, modernising port operations, and promoting digitalisation can enhance efficiency, reduce costs, and improve Nigeria’s maritime infrastructure, thereby stimulating economic growth,” he said.   He noted that some sections of the Companies and Allied Matters Act (CAMA) 2020 need to be reviewed. 
 
The sections, he said, include 557, which provides that only a fixed charge holder or other perfected security interest other than a floating charge holder will be able to levy execution on the assets of a company where a company is being wound up.   He also criticised Section 657 of CAMA 2020 for providing a preferential payment during the winding up of a company.
 
“Similarly, laws such as the Export Prohibition Act limit the export of agricultural products, stifling the sector’s growth and foreign investment opportunities. 
 
“Outdated maritime laws result in significant economic losses, while obsolete oil sector regulations allow for exploitation and lack of transparency, particularly concerning crude oil production and allocation,” he said. 
 
While calling on the NLRC to live up to its mandate, Ndarami canvassed proactive measures to overhaul obsolete laws.   He stressed the need for comprehensive reform to align laws with contemporary needs, promote transparency, and foster economic independence.
 
Expressing regrets at the docility of the commission, he urged the NLRC to spearhead efforts to modernise laws, enhance governance, and instill integrity that will ultimately pave the way for a prosperous and equitable Nigeria.
 
Also, Dr. M. T. Adekilekun (SAN) agreed that outdated laws significantly impact Nigeria’s economy by creating a stagnant business environment, ineffective taxation systems, land use complications, and overall regulatory uncertainty. 
 
According to him, laws such as the Sales of Goods Act, Hire Purchase Act, and the Land Use Act of 1978 are outdated, making commercial transactions inefficient and discouraging investment. 

“The Entertainment Tax Act of 2004, for instance, fails to address modern entertainment venues, leading to revenue losses,” he pointed out. He expressed the view that the NLRC’s mandate and resources need to be addressed. 
 
According to him, comprehensive law reforms will enhance Nigeria’s legal and business environment, promoting economic development and social justice.
 
Adekilekun explained that the Law Reform Act of 2004 was repealed, and the new law came into effect on April 6, 2022, adding that the new Act was enacted to facilitate the effective implementation of the Commission’s law reform proposals and to enhance its performance, which is yet to manifest. 

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