Vice President Yemi Osinbajo has said that over-regulation is killing businesses in Nigeria and stifling economic growth.
As a result, he said there must be a complete reorientation among regulatory institutions for businesses and investments to thrive in Nigeria.
Osinbajo said this yesterday after receiving a report of an Ad-Hoc Committee of the Presidential Enabling Business Environment Council (PEBEC), on Agro-Export, and the presentation of a National Action Plan 7.0 at the Presidential Villa, Abuja.
The Vice President, who presided over the first PEBEC meeting this year, said: “if people who want to export cannot export due to what seems like too many regulations. There are too many regulatory requirements. Too many regulations kill output.
“We have to take a second look at how we regulate. Over-regulation is killing businesses. It kills investments. An agric exporter can’t export perishable produce after months.”
In a statement by his media aide, Laolu Akande, the Vice President decried that the processes of product certification take so long that businesses from outside the country with swift regulatory regimes then bring in such products into Nigeria to sell.
“Because our certification processes are slow, others from outside nations (from neighbouring countries based on an ECOWAS agreement) with faster processes can bring their products and sell here, while our own businesses are still on the queues of regulatory agencies,” Osinbajo said.
Cumbersome processes
Earlier, the Ad-Hoc Committee in its report revealed among others that the export process around payment and verification is extremely cumbersome.
In particular, the exporters complained about the imposition of the NAFEX rate on export proceeds, which limits their access to foreign exchange and ability to utilise their export proceeds.
For instance, dollars domiciled in exporters’ accounts cannot be utilised for freight payment for export; compounded by multiple physical cargo examinations by Pre-shipment Inspection Agencies.
This added to multiple and sometimes overlapping documentation requirements by government regulatory agencies.
Because our certification processes are slow, others from outside nations (from neighbouring countries based on an ECOWAS agreement) with faster processes can bring their products and sell here, while our own businesses are still on the queues of regulatory agencies.
The Council, therefore, resolved to approve an Agro-Export Action Plan to remedy the situation, and also approved a 60-day National Action Plan 7.0 that continues the ease of doing business reforms of the Buhari administration. The Plan kicks off on February 7.
Members in attendance at the PEBEC meeting included the Ministers of Industry, Trade and Investment, Niyi Adebayo; Police Affairs, Mohammed Maigari Dingyadi; and Works and Housing, Babatunde Fashola.
Others were Head of Service, Dr. Folashade Yemi-Esan; Special Adviser, Economic Matters, Dr. Adeyemi Dipeolu: and Ease of Doing Business & Council Secretary, Dr. Jumoke Oduwole.
Also were heads of several Federal Government agencies – the Nigeria Customs Service (NCS), Nigeria Ports Authority (NPA), National Agency for Food Drug Administration and Control (NAFDAC), Standard Organisation of Nigeria (SON), Nigeria Shippers Council (NSC), and representatives of the private sector.
