Experts have called for the adoption of good regulatory governance principles to tackle the implications of overlapping regulatory functions on business operations and the manufacturing sector.
They made the call on Thursday in Lagos at the Manufacturers Association of Nigeria (MAN), Ikeja branch, 2024 Chief Executive Officers (CEOs) breakfast meeting.
The News Agency of Nigeria NAN reports that the meeting had as its theme: ‘Harmonising Regulatory Compliance: The Impact of Overlapping Regulatory Function on Business Operations’.
Dr Muda Yusuf, Founder, Centre for the Promotion of Private Enterprises(CPPE), said the call was particularly important as this was not the best of times for manufacturers and investors in the economy.
Yusuf stated that regulatory risk was one of the biggest risks that businesses had to cope with in the Nigerian economy.
This, he noted, could manifest as overlapping regulatory regimes, too many regulations, sporadic and frequent regulatory changes and absence of dispute resolut
ion mechanism between businesses and the regulators.
‘There are several cases of overlapping regulatory functions creating challenges for manufacturers and its impact is with respect to cost, irritation and distraction of having to attend to numerous agencies of government.
‘Because manufacturing business is long term, regulatory risk is a major source of worry for manufacturers as manufacturers do not have the luxury of switching easily from one product line to another.
‘Hence, the need for regulatory risk needs to be kept to the barest minimum,’ he said.
The CPPE boss also stressed the urgent need to harmonise the applicable exchange rate for the computation of import duty.
He said the import prohibition of 41 items by the former Central Bank of Nigeria (CBN), Godwin Emefiele, was a classic case of overlapping and conflicting functions of the CBN and fiscal authorities on trade.
Yusuf noted that while the policy lasted, it created a lot of confusion in the international trade ecosystem as items that w
ere on the CBN import prohibition list were not on the fiscal policy prohibition list.
He stressed that the regulator’s purpose and regulatory objectives should be clearly defined and communicated to the regulator, the regulated, and the general public.
‘Governance arrangements for regulators should promote efficiency, effectiveness and integrity.
‘Stakeholders should be able to predict, with a high degree of confidence, what decision a regulator is likely to make in particular circumstances.
‘Regulators should engage systematically with stakeholders through transparent, formal mechanisms that guard against ‘regulatory capture’ by one or more stakeholders.
‘Also, regulators should be accountable to the government and parliament, the regulated entities, and the general public for their decisions and use of resources,’ he said.
President, MAN, Otunba Francis Meshioye, said that while regulations were essential for safety and quality, the overlapping and sometimes contradictory regulations increased operat
ional costs and ultimately hindered business growth.
He noted that Nigeria’s regulatory landscape was characterised by a multitude of agencies, each with its own set of rules and requirements.
Meshioye said that though the intention behind these regulations was often to protect the public interest, ensure compliance, and promote industrial standards, the lack of coordination and harmonisation among regulatory bodies created bottlenecks to businesses.
‘These bottlenecks have adverse effects such as operational inefficiencies, increased compliance costs, delayed production, uncertainty and risks.
‘It is pertinent to note that the need for harmonisation of regulations is not about reducing standards or compromising on safety and quality but about creating a more coherent, predictable, and business-friendly regulatory environment,’ he said.
Elder Robert Ugbaja, Chairman, MAN Ikeja Branch, underscored the importance of collaborative efforts in addressing regulatory challenges and driving positive change.
Ugb
aja called for the development of practical strategies that promote regulatory harmonisation that had the potential to unlock the full capacities of Nigerian businesses and industries.
Source: News Agency of Nigeria