Foreign Direct Investment: Again, Captains Of Industry Express Doubts Amid Policy Somersaults

Although the Minister of Finance and Coordinating Minister of Economy, Wale Edun, has lamented that over 800 companies have so far shutdown, the actions of some state governments are signs that more may still leave unless drastic steps are taken.

As a result, Nigeria Employers’ Consultative Association (NECA) urged Lagos State Government to toe the path of support for struggling businesses and stop the ongoing misinformation and media onslaught, which is tantamount to economic sabotage.

According to the director general, Mr. Wale-Smatt Oyerinde, the sealing of the premises of some businesses on the allegation of non-compliance with water abstraction regulations is not only misleading but also likely to send the wrong message on the already harsh business environment.
Manufacturers Association of Nigeria (MAN), made a comment that , “A situation where industries are burdened with payments in excess of N100million for generating water for production purpose, in the face of government’s failure to supply same, is unfair.”

According to the director general of MAN, Segun Ajayi-Kadir “The exorbitant fees and the untoward means of extracting payment exemplifies the negative impact of tyranny of regulation on private business. To date, manufacturers across the country are saddled with more that N1.2billion of unsold inventory.”

In a chat with me, the president of the National Union of Food Beverages and Tobacco Employers (NUFBTE), Comrade Garba Ibrahim, blamed government for the crumbling of businesses with policies.
“What government has done is wrong and that is why most companies are closing down and relocating to other neighbouring countries. Dialogue is best way to achieve success,” Ibrahim noted.
The secretary general of Food, Beverage and Tobacco Senior Staff Association (FOBTOB), Comrade Adebosin, expressed his displeasure over the way and manner government is driving out foreigners from investing in Nigeria, saying, “when outsiders see how you are treating existing investors, they will be scared to invest.”

According to Adebosin, “In other climes, government will provide the needed environment. But here in Nigeria, companies will provide their own boreholes etc, yet same government will come to tax them or seal them down for none payment.

“The highest government should have done is sue such companies to court than the shutting down, which could cause lots of damages to their machines which are not meant to shutdown during operation.”