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LCCI indicts FG’s agencies of killing real sector in the country



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AS the manufacturing sector has been over saddled with many challenges, the Lagos Chamber of Commerce and Industry (LCCI) expressed its concern over the spate of regulatory sanctions in recent times.
Citing the penalties on some companies as for its call, LCCI stated that the y the severe, arbitrary and disproportionate character of some of the penalties, are becoming unbearable for companies that are managing to wade through the stormy economic weather.
In a statement by the President, AlhajiRemi Bello, the chamber stressed that “LCCI is a firm believer [and indeed a promoter] of the ideals of good corporate governance and adherence to best practices in business. The LCCI would not support impunity under whatever guise. However, we also desire that the activities of regulatory institutions be in consonance with best regulatory practice.”
Noting that the penalties on some of the companies were not meant to correct them but to break their backbone, LCCI stated that “We note the recent sanctions of N 1.4 Trillion fine imposed on MTN by the Nigerian Communications Commission [NCC] on account of non-registration of sim cards, N1 billion administrative charge imposed on Guinness by NAFDAC, Penalty on Skye Bank to the tune of N 4 billion imposed by the CBN, Penalty on First Bank of N 1.9 billion imposed by the CBN, Penalty of N 2.9 billion imposed on UBA by the CBN.
“We believe that sanctions should be proportionate and corrective. It should not be of such magnitude as to impose a shock from which recovery by firms may either be difficult or impossible. There should also be a clear framework and guidelines for the imposition of sanctions or penalties.
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 high-handedness and intimidating disposition. This certainly would not augur well for an economy that needs to attract investment.
“While we do not condone infractions of extant regulations or guidelines, we believe 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 Nigerian economy.”