Stakeholders in business say overregulation by government agencies creates a big gridlock to success and negates the federal government’s ease of doing business policy.
Speaking at an interactive forum with regulatory agencies in an event organised by the Lagos Chamber of Commerce and industry (LCCI) themed ‘Regulatory Environment Roundtable’, Babatunde Paul Ruwase, LCCI President, said that some regulatory actions are not consistent with the ease of doing business agenda of the federal government.
He stated that “the regulatory environment is crucial to the operations, survival, viability and the profitability of doing business in Nigeria. They have sensitive and enormous responsibilities that are critical to the growth and survival of the economy.
“There are some regulatory agencies that are not consistent with the ease of doing business. Some of these borders on high regulatory compliance cost, lack of clarity in regulatory requirements, overlapping regulatory functions, among others.
“It is imperative to minimise the burden of regulation on investors if the private sector must play the desired role of wealth and job creation as prescribed in the Economic Recovery and Growth Plan (ERGP)”
He further stated that businesses are generally burdened with the challenges of infrastructural deficiencies and macroeconomic blows, adding that most investors are saddled with huge cost of providing electricity, poor access to good roads, insecurity and other industry specific issues in the midst of poor access to affordable credit, high exchange rates and multiple taxation.
He said the number of regulators is not a problem as they have various responsibilities expected of them but overregulation of the various agencies is the challenge, especially for the micro small and medium enterprises as they are compelled to comply with all the rules and regulations of each agency as well pay the required dues of each of them.
He advocated that the agencies need to liaise with each other and reach a general consensus that will reduce over regulation as well as confusion on the functions of each agencies.
Osita Aboloma, director general, Standards Organisation of Nigeria, (SON), said that SON is in conformity with the industrial standards to ease doing business based on the Executive Order 1.
Aboloma, who was represented by Mosunmola Samuel, head, customer feedback and collaboration, said, “SON ensures the compliance of locally manufactured goods and imported products and services to the requirements of the Nigeria industrial standards through conformity assessment programmes, some of which include SONCAP, MANCAP and laboratory services to ensure compliance to standards.”
Aboloma further stated that 1,953 companies have been certified and 3,398 products have been discovered through the innovations of the MSMEs, adding that MSMEs have been encouraged with discounts on various levels.
Kayode Oguntuase, Nigerian ambassador to Benin Republic, while speaking on the challenges of the business environment, stated that smuggling and mounting of numerous roadblocks are major issues to contend with in the business environment.
He said, “Smuggling is not helpful for trading countries. Thanks, Nigeria, Benin and Benin Republic have made an agreement to setup a committee against smuggling because we have realised that smuggling is not doing any good for any of the countries.”
He added that mounting numerous roadblocks in Nigeria remains a major challenge for the trade, import and export sector in Nigeria, disclosing that Nigeria has almost 17 roadblocks before getting to the border; Togo has 4 while Benin republic and Ghana have none.
He said that the government agencies need to address the excess roadblock as it is hindering the ease of doing business, especially among countries, stating that before signing the free trade agreement, there is a need to cross examine its contents well in order to avoid future hitches in the business environment.
Gbemi Faminu
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