Lagos Chamber of Commerce and Industry (LCCI), has decried the spate of regulatory sanctions imposed on some Nigerian companies in recent times, describing the sanctions as capable of undermining current drives to grow the non-oil sector of the economy.
In a statement signed by its President, Alhaji Remi Bello, Monday, the OPS group stated that even though it remained a promoter of the ideals of good corporate governance and adherence to best practices in business, it would not support impunity under whatever guise.
The Chamber canvassed the need for activities of regulatory institutions to be in consonance with best regulatory practice as against the current penchant for arbitrary and disproportionate sanctions on erring entities.
Specifically, it cited the recent N1.4trn fine imposed on MTN by Nigerian Communications Commission, NCC, on account of nonregistration of SIM cards; the N1bn administrative charge imposed on Guinness Nigeria Plc by NAFDAC; the penalty on Skye Bank to the tune of N4bn imposed by Central Bank of Nigeria, CBN.
Others are the penalty on First Bank of N1.9bn imposed by CBN; as well as the N2.9bi penalty imposed on UBA by the same CBN.
According to the LCCI, while sanctions are not totally condemnable, such penalties however should not be of such magnitude as to impose a shock from which recovery by entities may either be difficult or impossible.
“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 highhandedness and intimidating disposition. This certainly would not augur well for an economy that needs to attract investment.
“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,” it added.
The Chamber noted that the regulatory environment remained a critical factor in the latest rankings of Nigeria, adding that this period is not auspicious for imposition of intimidating and overbearing regulatory tendencies.
It explained that while it did not condone infractions of extant regulations or guidelines 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 nation’s economy.
