The Centre for the Promotion of Private Enterprise (CPPE) has canvassed the need for regulatory agencies in the country to minimize the burden of Nigerian investors while discharging their functions in the current drive to sustainably grow the nation’s economy.
The private sector advocacy group, in a statement issued by its Chief Executive Officer (CEO), Dr. Muda Yusuf, expressed concern about the growing incidents of regulatory irritations, distractions, and frustrations inflicted on the Nigerian manufacturing sector and other investors in the Nigerian economy.
It lamented that there were disturbing tendencies of overbearing regulatory dispositions, disproportionate sanctions, obstructionist actions, outrageous fines and penalties, intimidation and high handedness, even as it express its worries about multiple regulatory fees and levies, duplications and overlapping responsibilities, regulatory repression and weak stakeholder engagement.
In view of the ugly scenario, the CPPE appealed 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.
It clarified that this didn’t detract from their primary responsibilities of the agencies to protect consumers, ensure competition, promote standards and quality and protect the environment, stressing that they do not have to suffocate investors in order to achieve this objective.
The Centre recalled that public pronouncements by some of the agencies had the unintended consequences of de-marketing 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 CPPE’s CEO further clarified: “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”, Yusuf added
The CPPE maintained that it believed that the regulatory agencies can discharge their functions effectively without jeopardizing investment sustainability and growth, adding that they 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.
