Lagos, Aug. 11, 2024 – The Centre for the Promotion of Private Enterprise (CPPE), a private sector think tank in Lagos, has appealed to regulatory agencies in the country to exercise their powers with more discretion.
The centre gave the advice in a statement issued by its Chief Executive, Muda Yusuf, in Lagos on Sunday.
The CPPE said it had observed a growing trend of irritations, distractions, and frustrations inflicted on manufacturing sector and investors in the country by the regulatory agencies.
The CPPE said these overbearing regulatory dispositions often manifested in form of disproportionate sanctions, obstructionist actions, outrageous fines and penalties, intimidation and high handedness.
It said the overbearing stance of the regulatory agencies had also brought about multiple regulatory fees and levies, duplications and overlapping responsibilities, regulatory repression and weak stakeholder engagement in the different sectors of the economy.
The CPPE also said public pronouncements by some of the agencies had the unintended consequences of demarketing local brands, an action which it said, was detrimental to the country’s aspiration to boost domestic production, grow investment, expand exports, earn foreign exchange and create jobs.
The CPPE advised that instead of their overbearing dispositions, the regulatory agencies should support the aspiration of the current administration to create and enabling environment for investment to boost domestic production, reduce import dependence, conserve foreign exchange and elevate investors’ confidence.
It advised the regulatory agencies to 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 said it believed that the regulatory agencies could discharge their functions effectively without jeopardising 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 advised. (GBN)
