The Centre for the Promotion of Private Enterprise (CPPE) has bemoaned the overbearing policy of regulatory agencies in Nigeria.
This, the economic think-tank has led to growing incidents of regulatory irritations, distractions, and frustrations inflicted on the Nigerian manufacturing sector and other investors in the Nigerian economy which is becoming worrisome.
In a statement signed on Sunday by the CPPE Director/CEO, Dr. Muda Yusuf, the group lamented that many large companies had declared huge losses in their latest financial results while many have shut down and some have scaled down their operations to this overbearing policy of regulatory agencies in Nigeria.
In the CPPE statement titled: ‘Need to ease regulatory burden on investors, “The Centre for the Promotion of Private Enterprise [CPPE] is worried about the growing incidents of regulatory irritations, distractions, and frustrations inflicted on the Nigerian manufacturing sector and other investors in the Nigerian economy.
“There are disturbing tendencies of overbearing regulatory dispositions, disproportionate sanctions, obstructionist actions, outrageous fines and penalties, intimidation and high handedness. There are also worries about multiple regulatory fees and levies, duplications and overlapping responsibilities, regulatory repression and weak stakeholder engagement.
“The CPPE appeals to the regulatory agencies to exercise more discretion in exercise of their powers and support the aspiration of the present administration to create and enabling environment for investment to boost domestic production, reduce import dependence, conserve foreign exchange and elevate investors’ confidence.
“This does not detract from their primary responsibilities of the agencies to protect consumers, ensure competition, promote standards and quality and protect the environment. But they do not have to suffocate investors in order to achieve this objective.
“Public pronouncements by some of the agencies had the unintended consequences of demarketing local brands, an action which is detrimental to the country’s aspiration to boost domestic production, grow investment, expand exports, earn foreign exchange and create jobs.
“The regulatory agencies should 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 latest financial results. Many have shut down; some have scaled down their operations while several others have left the country.
Businesses are grappling with the challenges of exchange rate depreciation, currency volatility, high energy cost, high electricity tariff, high cost of logistics, weak purchasing power, soaring inflation, high cost of funds, high cost of cargo clearing, insecurity in parts of the country and many more. These are enough troubles for manufacturers and other investors in the economy. The regulatory agencies should not be perceived as adding to this multitude of problems.
“It is important that the regulatory agencies bear this in mind. Running a business in the country at this time is a herculean task. The CPPE believes that the regulatory agencies can discharge their functions effectively without jeopardizing investment sustainability and growth.
“Regulatory agencies should see investors as partners in the Nigerian project for the growth of the economy and not as objects from which to extract financial value of all types.”
By: Babajide Okeowo
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