High cost of doing business undermines government’s initiatives – Onafowokan

George Onafowokan, managing director of Coleman Wires and Cables Industries Limited, has said that the reality of doing business in Nigeria is tough despite initiatives put in place by the government.

He said manufacturers are not seeing the benefits of some of the initiatives by the government.

According to an appraisal statement of the CEO, Onafowokan said the inconsistency in government policies is hindering the growth and productivity of the manufacturing industry.

“We have inconsistent policies that are not driving manufacturing processes. We’re killing the industry that generates employment, which is key to the nation’s growth,” he said.

Focusing on the broader economic landscape, Onafowokan emphasised that while the government has made strides in easing the process of setting up businesses, the high cost of running those businesses remains a critical issue.

“The real challenge is the cost of doing business. It’s one thing to make it easy to register a business,” he said.

The statement also revleaed that Onafowokan commended the initiatives led by Taiwo Oyedele, the chairman, presidential fiscal policy and tax reforms committee, but expressed skepticism about how effectively they translate into tangible benefits for manufacturers.

“The reality of doing business in Nigeria is tough. We have fantastic initiatives, but manufacturers are not seeing the instant benefits,” he said. He also criticized the Nigerian Customs Service for its role in fiscal policy, noting that “Customs has become more of a revenue generator rather than focusing on its primary role of physical balancing.”