Members of the Organised Private Sector (OPS) have warned the Federal Government that the recent move by Federal Competition and Consumer Protection Commission (FCCPC) to slam $220 million fine on United States-based tech giant, Meta Platforms Incorporated, the parent company of Facebook, WhatsApp and Instagram; halt MultiChoice Nigeria, the parent company of DStv and GOtv’s new price hike and intimidating US giant beverage firm, Coca-Cola HBC Group over trade description allegations, among other infractions in their operations in the country is abound to trigger another round of exodus of foreign firms if the matters are not handled with mutual respect and understanding.
Specifically, the private sector group comprising membership organisations such as Manufacturers Association of Nigeria (MAN); Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Lagos Chamber of Commerce and Industry (LCCI), Nigeria Employers Consultative Association (NECA), Nigerian Association of Small and Medium Enterprises (NASME), Nigerian Association of Small Scale Industrialists (NASSI), and Centre for the Promotion of Private Enterprise (CPPE) pointed out that it is worried by the growing incidents of regulatory irritations, distractions and frustrations inflicted on genuine investors that have contributed immensely to building of the Nigerian economy.
Invariably, the OPS explained that outrageous fines and penalties are bound to definitely impair on their revenue projections and take huge toll on their businesses, which may result in laying off of more Nigerian workers, pushing them into already saturated labour market.
In an interview with New Telegraph in Lagos, the Director/Chief Executive Officer (CEO), Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, stated that the disturbing tendencies of overbearing regulatory dispositions, obstructionist actions, outrageous fines and penalties, intimidation and high-handedness by the FCCPC on the multinational firms are not acceptable in an economy that has been marred by fragility for investors.
He said that a situation whereby MultiChoice increased its subscription rates by up to 25 per cent on March 1, citing inflation and rising operational costs as the reasons for the price adjustment, only for FCCPC to tell the firm to halt its new subscription rate and maintain the status quo, pending its determination, is not practised in a sane environment, because everyone can see the adverse effects of rising inflation on cost of operations.
The renowned economist also stated that the $220 million fine imposed on Meta Platforms Incorporated by the Competition and Consumer Protection Tribunal (CCT) should not be condoned in a just society, dubbing it a “regulatory repression and weak stakeholder engagement.” To him, if such precedence continues, the country’s GDP should be set to lose trillions of naira to neighbouring countries if such multinational firms decide to relocate their operations.
The CPPE CEO stressed that the private sector group is worried about multiple regulatory fees and levies, duplications and overlapping responsibilities, regulatory repression and weak stakeholder engagement caused by regulatory burden in the country’s business environment already.
Yusuf said: “There is need for regulatory agencies of government to exercise more discretion in exercise of their powers and support the aspiration of the present administration to create an enabling environment for investment to boost domestic production, reduce import dependence, conserve foreign exchange and elevate investors’ confidence.
This does not detract from the primary responsibilities of the agencies to protect consumers, ensure (fair) competition, promote standards and quality, and protect the tackling the insurgency in the state, however, pledged to strengthen the collaboration with the security agencies to address the matter.
His words: “In recent months, I have held extensive consultations with our federal partners and the leadership of various security agencies. I am pleased to inform you that the collaboration between Borno State and environment.”
In his reaction, the Director-General of MAN, Mr Segun Ajayi-Kadir, regretted that it is time for government ministries, departments and agencies (MDAs) to streamline multiple levies being placed on local companies operating in the country, which cause uncertainties in their businesses, suggesting that government and its relevant agencies need to adopt a one-stop shop levy, because of the financial burdens on investors.
According to him, this is a big financial burden on any company that is only trying to stimulate sales in this very challenging environment, saying: “We recommend that government advises its regulatory agencies to ensure that only one fee is charged for a particular transaction.
There is no reason why FCCPC, SON, NAFDAC (which are all federal agencies) should charge separate fees for the same business infractions, thereby increasing the cost of doing business in Nigeria.” Ajayi-Kadir explained that FCCPC’s $220 million imposed on Meta on the alleged infraction would have serious damaging effects on the reputation and survival of their business.
