“Regulatory bodies are strangling investors, CPPE warns”

The Centre for Promotion of Private Enterprise (CPPE) has lamented the overzealous policies of regulatory bodies in Nigeria.

This, according to the economic think tank, has led to increasing incidents of regulatory interference, disruption and frustration befalling Nigeria’s manufacturing sector and other investors in the Nigerian economy which is becoming worrying.

In a statement signed on Sunday by CPPE Director/CEO, Dr. Muda Yusuf, the group lamented that many major companies have reported huge losses in their latest financial results while many have closed down and some have scaled back their operations due to the overzealous policies of regulatory agencies in Nigeria.

In a CPPE statement titled: ‘Need to ease the regulatory burden on investors, “The Center for Private Enterprise Promotion [CPPE] concerned about the increasing incidence of regulatory disruption, interference and frustration befalling the Nigerian manufacturing sector and other investors in the Nigerian economy.

“There is a disturbing trend of overly stringent regulations, disproportionate sanctions, obstructive measures, excessive fines and penalties, intimidation and arbitrariness. There are also concerns about multiple regulatory fees and charges, duplication and overlapping responsibilities, regulatory repression and weak stakeholder engagement.

“CPPE urges regulatory bodies to be more careful in using their authority and support the current government’s aspirations to create a conducive environment for investment to increase domestic production, reduce import dependence, save foreign exchange, and increase investor confidence.

“This does not diminish the primary responsibility of these bodies to protect consumers, ensure competition, improve standards and quality, and protect the environment. However, they should not strangle investors to achieve these goals.

“The public statements of several institutions have actually brought about unintended consequences, namely the loss of local brand marketing. This action is detrimental to the country’s aspirations to increase domestic production, increase investment, expand exports, earn foreign exchange, and create jobs.

“Regulatory bodies must understand the context in which Nigerian businesses operate. The constraints are enormous and diverse, which is why many large companies have reported huge losses in their latest financial statements. Many have closed down; some have scaled back their operations while others have left the country.

Businesses are grappling with the challenges of exchange rate depreciation, currency volatility, high energy costs, high electricity tariffs, high logistics costs, weak purchasing power, high inflation, high cost of funds, high cargo handling costs, insecurity in some parts of the country, and more. These are already enough problems for manufacturers and other investors in the economy. Regulatory bodies should not be seen as adding to these problems.

“It is important for regulatory bodies to remember this. Doing business in this country today is a very tough task. CPPE is confident that regulatory bodies can carry out their functions effectively without jeopardizing the sustainability and growth of investments.

“Regulatory bodies must view investors as partners in Nigeria’s project for economic growth and not as objects for extracting financial value in any form.”

By: Babajide Okeowo

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