Over-regulation stifling business growth in Nigeria — Stakeholder

Dr. Kamorudeen Adigun, Member of the National Council, Manufacturers Association of Nigeria (MAN), says over-regulation and sudden policy changes are stifling business growth in Nigeria.

Adigun said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

He expressed the concerns of manufacturers regarding government’s role in exacerbating economic instability, which he said was driving many businesses to the brink of collapse.

On electricity tariff hike, Adigun said that government’s decision to increase electricity tariffs by a staggering 300 per cent was a glaring example of misguided policy.

“How do you explain that? such steep increases, coupled with the flotation of the Naira and the removal of fuel subsidies, have a devastating effect on production costs.

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“These factors are major contributors to the sharp rise in prices, undermining the very objectives that price control mechanisms aim to achieve,” he said.

Adigun also frowned at the government’s approach to price regulation, describing it as contradictory.

“On one hand, the government sets up price control agencies to stabilize the economy and regulate the prices of essential commodities.

“On the other hand, it drives up costs through its own policies such as electricity tariff hike and multiple taxes.

“The burden of these policies ultimately falls on consumers, who are already grappling with diminished purchasing power,” he said.

The stakeholder said the current regulatory framework was inadequate and in dire need of reform.

He called for a comprehensive review of outdated legislation and a strengthening of the capacity of price control agencies through the deployment of technology.

“The legislation is stale. It needs to be reviewed in line with the reality of the time.

“More so, the government’s focus on revenue generation at the expense of business growth, can lead to the collapse of the economy.

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“Without a conducive environment for businesses to thrive and “bake a bigger cake”, the government’s tax revenue will ultimately dry up,” Adigun said.

The stakeholder proposed the convocation of a national conference involving all stakeholders to thoroughly discuss these issues and develop viable solutions.

He said that government’s support was important for businesses, particularly small enterprises, which played crucial role in job creation and economic development.

The official also dismissed claims that manufacturers took advantage of consumers by inflating prices, adding that the competitive nature of the industry prevents such practices.

“Every manufacturer’s pricing is based on the cost of production. Its impossible to arbitrarily increase prices in a competitive environment,” he said.

Adigun reiterated MAN’s commitment to advocating a more favorable economic environment.

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He warned that if the current trend of over-regulation and sudden policy shifts continued, the consequences for the economy could be dire.

“The over-regulation in our system is stifling life out of businesses. Its like a parasite sucking the blood out of a dog. If the dog dies, the parasite dies too,” he said.