CPPE raises alarm on regulations frustrating Nigerian investors
By Esther Agbo
The Centre for the Promotion of Private Enterprise (CPPE) has raised an alarm on regulations hindering business operations and frustrating investment growth in the country.
In a statement released by the Director and CEO of CPPE, Dr. Muda Yusuf, the centre highlighted the overbearing nature of some regulatory bodies, citing instances of disproportionate sanctions, obstructive actions, and exorbitant fines and penalties. These actions, according to the CPPE, are creating an unfriendly business environment, exacerbated by the imposition of multiple regulatory fees and levies, as well as the duplication of responsibilities among agencies.
The organisation described these challenges as “regulatory irritations, distractions, and frustrations.”
Dr. Yusuf said, “There are disturbing tendencies of overbearing regulatory dispositions, disproportionate sanctions, obstructionist actions, outrageous fines and penalties, intimidation and high handedness.
“There are also worries about multiple regulatory fees and levies, duplications and overlapping responsibilities, regulatory repression and weak stakeholder engagement.
“The CPPE appeals to the regulatory agencies to exercise more discretion in exercise of their powers and support the aspiration of the present administration to create and enabling environment for investment to boost domestic production, reduce import dependence, conserve foreign exchange and elevate investors’ confidence.”
The CPPE emphasised that while the regulatory bodies have a mandate to protect consumers, ensure competition, and uphold standards, their current approach is detrimental to the aspirations of the Nigerian economy. Dr. Yusuf pointed out that the harsh regulatory environment is leading to the unintended consequence of “demarketing” local brands, which undermines efforts to boost domestic production, grow investment, expand exports, and create jobs.
“This does not detract from their primary responsibilities of the agencies to protect consumers, ensure competition, promote standards and quality and protect the environment. But they do not have to suffocate investors in order to achieve this objective.
“Public pronouncements by some of the agencies had the unintended consequences of demarketing local brands, an action which is detrimental to the country’s aspiration to boost domestic production, grow investment, expand exports, earn foreign exchange and create jobs.”
The organisation called for a more considerate and supportive approach from regulatory agencies, urging them to view investors as partners in the economic growth of Nigeria rather than as sources of revenue extraction. This appeal comes at a time when many businesses in the country are already struggling with numerous challenges, including currency volatility, high energy costs, soaring inflation, and insecurity.
“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,” said Dr. Yusuf, noting that several large companies have reported significant losses, with some scaling down operations or even shutting down entirely.
The CPPE noted that the current regulatory climate could further stifle investment and economic growth if not addressed.
The statement concluded with a call for regulatory agencies to exercise greater discretion in their operations, in line with the current administration’s goal of creating an enabling environment for investment.
The CPPE believes that a balanced approach can be achieved, allowing regulators to fulfil their duties without compromising the sustainability and growth of investments in Nigeria.
