The Centre for the Promotionof Private Enterprise [CPPE] is worried about the growing incidents ofregulatory irritations, distractions, and frustrations inflicted on the Nigerianmanufacturing sector and other investors in the Nigerian economy. There aredisturbing tendencies of overbearing regulatory dispositions, disproportionatesanctions, obstructionist actions, outrageous fines and penalties, intimidationand high handedness. There are alsoworries about multiple regulatory fees and levies, duplications and overlappingresponsibilities, regulatory repression and weak stakeholder engagement.
The CPPE appeals to theregulatory agencies to exercise more discretion in exercise of their powers andsupport the aspiration of the present administration to create and enablingenvironment for investment to boost domestic production, reduce importdependence, conserve foreign exchange and elevate investors’ confidence. This does not detract from their primary responsibilities of theagencies to protect consumers, ensure competition, promote standards andquality and protect the environment. Butthey do not have to suffocate investors in order to achieve this objective. Publicpronouncements by some of the agencies had the unintended consequences of demarketinglocal brands, an action which is detrimental to the country’s aspiration toboost domestic production, grow investment, expand exports, earn foreignexchange and create jobs.
The regulatory agenciesshould appreciate the context in which businesses in Nigeria are operating. The headwinds are profound and multifaceted,which is why many large companies declared huge losses in their latestfinancial results. Many have shut down; some have scaled down their operationswhile several others have left the country. Businesses are grappling with the challenges of exchange ratedepreciation, currency volatility, high energy cost, high electricity tariff, highcost of logistics, weak purchasing power, soaring inflation, high cost offunds, high cost of cargo clearing, insecurity in parts of the country and manymore. These are enough troubles formanufacturers and other investors in the economy. The regulatory agenciesshould not be perceived as adding to this multitude of problems.
It is important that the regulatory agencies bearthis in mind. Running a business in thecountry at this time is a herculean task.
The CPPE believes that theregulatory agencies can discharge their functions effectively withoutjeopardizing investment sustainability and growth. Regulatory agencies should see investors aspartners in the Nigerian project for the growth of the economy and not asobjects from which to extract financial value of all types.
DR MUDA YUSUF
DIRECTOR/CEO
CENTRE FOR THE PROMOTION OFPRIVATE ENTERPRISES [CPPE]
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