Victor EzejaThe Manufacturers Association of Nigeria (MAN) has berated the Economic and Financial Crimes Commission (EFCC) for the invasion of Dangote Group Limited’s office in Lagos last week.
MAN’s Director-General, Segun Ajayi-Kadir, who expressed deep concerns over the manner in which the antigraft agency conducted its investigation, described it as a”sheer brigandage.”
Join our WhatsApp Channel“While investigations are necessary, the method matters,” Ajayi-Kadir, who appeared on Arise TV’s Global Business Report programme on Monday, said.
“Does it necessitate a forceful incursion by security operatives into a well-established company’s headquarters?” He queried the rationale behind the invasion, stressing that it could tarnish the company’s corporate image and deter potential foreign investors into the country.
The association emphasized that such actions could disrupt the business environment in the country, especially when the government is actively seeking foreign investments.
The MAN DG urged government agencies to exercise restraint and consider the broader consequences of their actions on the investment climate.
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Expressing worry that the news of the invasion might push potential investors away, MAN stressed the importance of the EFCC clearing the air on the purpose and execution of their actions to reassure existing businesses and attract prospective investors.
He said that Dangote Group given its level of investment in not just Nigeria but across Africa, is already an institution and that government agencies should not take actions that hurt private sector players but encourage them with incentives.
Forex Scarcity
Speaking on the persisting foreign exchange scarcity, Ajayi-Kadir stressed the need for creative management of FX to achieve stability and also help those in the manufacturing sector who need them to import raw materials and machines that are not available locally for production.
He asserted that in a situation where the country has forex scarcity, it is better to give preferential treatment in terms of FX allocation to players in vital sectors that could reflate the economy with their production activities.
“If you have scarcity in terms of foreign exchange, it is important for you to deliberately and intentionally fund those sectors that are likely to reflate the economy perhaps, with higher chances of even reducing your demand for your forex. So, you would naturally give to manufacturers for instance, who have the capacity to not only produce domestically but export and earn the forex that you require. The government can decide on a sector to be supported, particularly for economic survival and improvement in terms of growth. It has to be creatively and intentionally done. There is nothing wrong with that,” he stated.
He maintained that such is also practiced elsewhere to help firms in different sectors and get the economy out of the woods.
Why EFCC Investigation
The controversy stemmed from the EFCC’s investigation into alleged preferential forex allocations to the Dangote Group and 51 other companies under the former CBN Governor, Godwin Emefiele. In response, Dangote Industries Limited explained that no accusations of wrongdoing had been made against any company within its Group and that they were cooperating with the EFCC’s request for information.
The incident has sparked concerns about the implications of such heavy-handed tactics on Nigeria’s investment landscape, prompting calls for more prudent and respectful approaches in conducting inquiries into corporate matters.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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