Victor EzejaThe Centre for the Promotion of Private Enterprise (CPPE), has highlighted the burden faced by investors in the Nigerian economy and warned that they should not be suffocated by regulatory agencies, who come up with policies that are considered as burden for businesses.
In a statement by the Chief Executive Officer, Dr Muda Yusuf, CPPE expressed worry about policies and actions implemented by regulatory agencies that it considered as inflicting frustrations on the Nigerian manufacturing sector and other investors in the economy.
Join our WhatsApp ChannelIt said: “There are disturbing tendencies of overbearing regulatory dispositions, disproportionate sanctions, obstructionist actions, outrageous fines and penalties, intimidation and high handedness.”
According to the Centre, these come in form of “multiple regulatory fees and levies, duplications and overlapping responsibilities, regulatory repression and weak stakeholder engagement.”
The CPPE said that while exercising their regulatory powers, the agencies should apply discretion to support the present administration’s goal of creating an enabling environment for investment to boost domestic production, reduce import dependence, conserve foreign exchange and elevate investors’ confidence.
It said: “This does not detract from the primary responsibilities of the agencies to protect consumers, ensure competition, promote standards and quality and protect the environment.”
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“But they do not have to suffocate investors in order to achieve this objective,” the Centre warned.
It pointed out that some public pronouncements by some agencies have had unintended consequences of de-marketing local brands, which is detrimental to the economy in terms of the quest to boost local production, grow investment, increase exports, earn foreign exchange and create jobs.
The economic expert noted that businesses in Nigeria face a couple of challenges in the environment including high energy costs, logistics, high exchange rate due to naira depreciation, currency volatility, general high cost of things (soaring inflation) and insecurity in some parts of the country. These challenges, the Centre said, have forced a couple of multinationals to exit the country, while many domestic companies have closed down.
CPPE said these are enough troubles for the manufacturers and other investors in the economy and the regulatory agencies should not be seen as aggravating the situation by their actions.
While noting that managing a business in the country at this time is a difficult task, the economic think tank said the regulatory agencies can discharge their functions effectively without hampering 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,” it added.
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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