OPS wants national strategy for businesses to avoid high mortality
The Organised Private Sector (OPS) has identified regulatory risk as a major challenge facing Nigerian businesses currently while advocating for a national strategy in policy formulation to forestall rising cases of collapse in the country.
At the just-concluded Regulatory Conversations 4.0 with the theme: “Foreign exchange restrictions on food imports and implications for regulating and growing the Nigerian economy,” in Lagos, the stakeholders submitted that regulatory risk can lead to the increased cost of operations, which would ultimately lead to business failure if not well managed.
Regulatory risk is the concern that a change in regulations or legislation will affect investment, company or industry.
Specifically, the Founder of Centre for Value in Leadership, Prof. Pat Utomi, argued that many companies had already collapsed in Nigeria due to regulatory risk and lack of national strategy.
“We should have a clear national strategy that we want to join the league of global leaders. We can do isolated industrial policy on those areas that our endowments allow us to become competitive globally and ensure we dominate that value chain,” Utomi said.
He argued that negative legitimacy would not take the country anywhere but instead would destroy businesses as well lead to an increase in the unemployment rate.
“The biggest risk in doing business in Nigeria is a regulatory risk. The regulator is more likely to kill a company than any market risk,” he stated.
Utomi pointed out that certain sector of the economy had been wiped out systematically by unreasonable regulatory actions, stressing the need for government to think through the consequences of their policies before implementation.
Also speaking, the Director-General of Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, said that the regulatory environment was one of the biggest challenge being faced currently by business operators.
However, Yusuf affirmed that the regulators mean well for the country, but the problem has always been the strategy and how to achieve it.
“Unfortunately we do not have regulators who are in government that actually listen or engage so that you can have the right kind of strategy to achieve the desired result.
“There are too many regulations in the country and the damage it is doing to the economy is enormous. To do business with integrity in Nigeria today is a tall order,” Yusuf said.
Furthermore, the LCCI boss added that the emphasis should be on building domestic capacity for the development of the country.
The Chief Executive Officer, Integrity Organisation/Convention on Business Integrity, Soji Apampa, said that up to 70,000 children die on a yearly basis due to serious malnutrition.
Apampa urged the government to think through policy choices to avoid negative effects.