NACCIMA Urges FG to Treat Business Investors Well to Attract FDI
CHIGOZIE AMADI
The National President of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr. Dele Oye, has urged the federal government to review how existing investors are treated.
Specifically, NACCIMA listed the case of the Nestle Nigeria Plc and National Sports Lottery Regulatory Commission (NSLRC), urging the government to get serious about attracting more investments into the country.
Oye said this yesterday in a public statement titled: “Economic Management and the Presidential Dilemma: The Case of Nestle Nigeria Plc. vs National Sports Lottery Regulatory Commission.”
He told government that it was not yet too late to start with the Nestle Nigeria Plc case because it highlighted “the need for relentless advocacy to ensure that businesses are not unduly hampered by regulatory overreach.”
He added: “The cases of Nestle Nigeria Plc and Dangote Refinery underscored the challenges businesses face in Nigeria due to the unexpected actions of some government MDAs.
“These incidents have raised concerns among current local investors and prospective foreign investors about Nigeria’s status as a viable investment destination.”
According to him, NACCIMA felt compelled to address the recent events involving long-term investor and distinguished multinational brand, Nestle Nigeria Plc.
“It is important to acknowledge that the actions taken by various government agencies against legitimate private business operations are interconnected.
“Unfortunately, some of these MDAs often hinder rather than support business enterprises. Therefore, we must express our concern regarding those agencies utilising extrajudicial means on law-abiding legal entities. To be clear, this affects all Nigerian companies,” he said.
He said that the NLRC invaded Nestle’s headquarters with armed policemen, which raised “questions about the seriousness of our country’s ability to retain investors, talk less of securing new foreign investments.”
He added that on November 29, 2023, Justice Daniel Osiagor of the Federal High Court in Lagos declared the invasion and sealing of Nestle’s offices by the NLRC as illegal and unconstitutional.
He noted that the court also ruled that the NLRC’s actions violated Sections 44(1) and 34(1) of the 1999 Constitution, which protect property rights and the dignity of individuals.
But despite the court’s ruling, according to him, the NLRC filed a stay of execution, requesting the court to delay the judgment’s implementation pending their appeal, arguing that the dispute should await the appellate court’s decision.
He said: “We would like to offer some counsel here. If the government is serious about attracting more investment, it needs to review how existing investors are treated. This also applies to the overall economic management of the country.
“By looking at other examples within the African continent, we can find alternative approaches to economic management. This government should adopt policies and approaches that promote business growth through incentives, simplified tax regimes, and robust legal frameworks that protect investors’ rights.
“A stable and predictable regulatory environment is crucial for attracting and retaining investments,” he added.
NACCIMA also recommended to the government ways to improve the country’s investment climate through regulatory clarity.
Oye said: “Government agencies must provide clear guidelines and ensure consistent enforcement of regulations. Businesses should not be left to navigate conflicting directives.
“Government’s MDAs must respect judicial processes and court rulings. The rule of law is fundamental to maintaining investor confidence.
“Simplifying processes for business registration, licensing, and compliance will reduce the administrative burden on businesses. Ensuring that businesses’ properties are protected from unlawful seizures and invasions will bolster investor trust.
“Offering tax breaks, grants, or other incentives for compliance with regulations can encourage businesses to operate within the legal framework and training and equipping regulatory staff to understand the business landscape and their role in fostering economic growth.”
According to him, President Tinubu should be commended for his interventions in specific cases, but such interventions would not be necessary if the right economic management strategy was in place for all parties to follow.
“Nigeria has the potential to create an environment where businesses thrive, ultimately driving economic growth and development. NACCIMA stands ready to support and serve as a beacon of hope for a more prosperous Nigerian business landscape,” he said.
