The Centre for the Promotion of Private Enterprise (CPPE) has raised concerns over the increasing challenges posed by regulatory agencies to the Nigerian manufacturing sector and other investors in the economy.
In a statement issued on Sunday by Dr. Muda Yusuf, the CPPE Director/CEO, the organization expressed alarm at the growing number of regulatory obstacles, distractions, and frustrations that are negatively impacting businesses.
The CPPE highlighted that several large companies have recently reported significant financial losses, while others have either shut down or scaled back their operations due to the stringent and overbearing policies enforced by regulatory agencies in Nigeria.
In the statement titled “Need to Ease Regulatory Burden on Investors,” the CPPE detailed its concerns: “The Centre for the Promotion of Private Enterprise [CPPE] is increasingly troubled by the escalating incidents of regulatory irritations, distractions, and frustrations inflicted on the Nigerian manufacturing sector and other investors in the Nigerian economy.”
The statement criticized the regulatory agencies for their “overbearing dispositions, disproportionate sanctions, obstructionist actions, outrageous fines and penalties, intimidation, and high-handedness.” It also noted the prevalence of multiple regulatory fees, duplications, overlapping responsibilities, regulatory repression, and weak stakeholder engagement.
The CPPE called on regulatory agencies to exercise greater discretion in the execution of their powers and to support the current administration’s efforts to create an enabling environment for investment. This, they argued, is essential to boosting domestic production, reducing import dependence, conserving foreign exchange, and enhancing investor confidence.
While acknowledging the importance of protecting consumers, ensuring competition, promoting standards, and safeguarding the environment, the CPPE emphasized that these objectives should not come at the cost of suffocating investors.
The group warned that some public pronouncements by regulatory agencies have unintentionally damaged the reputation of local brands, which could undermine Nigeria’s efforts to boost domestic production, attract investment, expand exports, earn foreign exchange, and create jobs.
The CPPE urged regulatory bodies to consider the difficult context in which Nigerian businesses are currently operating. “The headwinds are profound and multifaceted,” the statement read, citing challenges such as exchange rate depreciation, currency volatility, high energy costs, elevated electricity tariffs, expensive logistics, weak purchasing power, soaring inflation, high interest rates, costly cargo clearing, and insecurity in parts of the country.
The CPPE stressed that regulatory agencies should not be seen as adding to the already significant burdens faced by manufacturers and other investors. “Running a business in Nigeria at this time is a herculean task,” the statement concluded. The CPPE believes that regulatory agencies can effectively fulfill their responsibilities without jeopardizing the sustainability and growth of investments.
Finally, the CPPE called for a shift in perspective, urging regulatory agencies to view investors as partners in the growth of the Nigerian economy, rather than as entities from which to extract financial value.
