Yemisi Izuora
The Lagos Chamber of Commerce and Industry (LCCI) has cautioned government over heavy sanctions imposed on businesses by various industry regulators.
The LCCI said though it would not support operators acting outside the law, nonetheless it will not lend support to arbitrarily imposition of fines to such a magnitude that recovery will be difficult.
In a state by its president Alhaji Remi Bello and made available to Oriental News Nigeria in Lagos, “Already, the perception and ranking of Nigeria as an investment destination is unsatisfactory.
For instance, Nigeria ranks 169 out of 189 countries profiled in the World Bank Ease of Doing Business Report for 2015.
It also has a ranking of 124 out of 140 countries profiled in the global competitiveness report of the World Economic Forum”.
Bello observed that the regulatory environment is critical factor in this ranking performance of Nigeria, and warned “This is therefore not the time for intimidating and overbearing regulatory tendencies”.
“While we do not condone infractions of extant regulations or guidelines, we believe there should be some restraint in the imposition of penalties by regulatory agencies in the interest of private sector development and the advancement of the Nigerian economy.
The LCCI is a firm believer [and indeed a promoter] of the ideals of good corporate governance and adherence to best practices in business.
The LCCI would not support impunity under whatever guise.
However, we also desire that the activities of regulatory institutions be in consonance with best regulatory practice” he said.
The Chamber noted recent sanctions imposed on business recently which include the N 1.4 Trillion fine imposed on MTN by the Nigerian Communications Commission [NCC] on account of non-registration of sim cards and the N1 billion administrative charge imposed on Guinness by NAFDAC.
Penalty on Skye Bank to the tune of N 4 billion imposed by the CBN.
It also made reference to the penalty on First Bank of N 1.9 billion and N 2.9 billion imposed on UBA by the CBN.
Bello stressed that sanctions should be proportionate and corrective and it should not be of such magnitude as to impose a shock from which recovery by firms may either be difficult or impossible.
“There should also be a clear framework and guidelines for the imposition of sanctions or penalties.
The limit of regulatory discretional powers should be clearly defined. The concern is that such powers are commonly prone to abuse and could predispose regulatory agencies to high-handedness and intimidating disposition.
This certainly would not augur well for an economy that needs to attract investment” he advised.
