Buhari’s emergence will sanitise regulatory agencies – Expert | Independent Newspapers Limited
Newsletter subscribe


Buhari’s emergence will sanitise regulatory agencies – Expert

Posted: Apr 6, 2015 at 6:00 am   /   by   /   comments (0)

By Andrew Airahuobhor –  Theme Editor, Business


Few days after Mohammadu Buhari emerged as President-elect following the March 28 elections, Nigeria’s business community is already hopeful that the new administration will sanitise regulatory agencies for improved service delivery.

Patrick Aighemie, business and project management consultant told Daily Independent that government should sanitise regulatory agencies, whose activities are critical to business growth.

He noted that Government agencies, which include trade mark section of ministry of trade and investment; Corporate Affairs Commission; Standards Organisation of Nigeria; National Agency for Food and Drug Administration and Control (NAFDAC) are due for institutional reforms.

According to him, Buhari’s antecedents as former military head of state, who showed zero tolerance to corrupt practices by government officials, is seen as a major boost to investors confidence.

He said : “Nigerian stocks already reacted positively, when market capitalisation gained N903 billion or 8.42 percent the highest since March 2010, leading gains among world equity markets, shortly after General Muhammadu Buhari won the presidential election, marking the first peaceful shift in power since the end of colonial rule in 1960.”

Although the country has a viable business environment, considering the high population and largely untapped raw materials, Aighemie said corruption by regulatory agencies, failing infrastructure, high interest rates amongst others, combine to make cost of doing business very high, starting from cost of registering business with CAC, to cost of registering a product with NAFDAC and SON, which runs into several millions depending on the mood of the official in charge. There are no fixed costs, making it difficult to predict.

Aighemie said investment climate in the country is unpredictable because the regulatory agencies have both statutory fees and illegal charges, which are a must for any transaction.

He alleged that these illegal charges often causes delays and increases cost of investment.