President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, has raised serious concerns over the growing cost of doing business in the country, attributing a significant portion of the burden to the actions and inefficiencies of regulatory agencies. Speaking during a recent interview on The Coffee Table with Ugodre, a thought-leadership programme focused on economic and policy discourse, Oye did not mince words as he dissected the challenges businesses face due to excessive regulation, multiple levies, and inconsistent enforcement.
According to Oye, while the private sector continues to demonstrate resilience and innovation, many enterprises are being stifled by what he described as a “regulatory overload” driven by overlapping mandates and a lack of coordination among government agencies. He noted that instead of enabling the business environment, many regulators have turned into revenue-generating institutions, imposing fines and charges that have no direct bearing on service delivery or economic productivity.
The NACCIMA boss explained that small and medium-sized enterprises (SMEs), in particular, bear the brunt of this pressure. These businesses, he said, are often too weak to absorb arbitrary costs and face intimidation from officials who use vague rules to justify penalties. He described the current regulatory environment as hostile, warning that it could push more enterprises into the informal sector or lead to outright business closures if not urgently addressed.
Oye also took aim at what he called “regulatory aggression,” where agencies, both at the federal and state levels, pursue businesses with a focus on enforcement rather than guidance. He stressed that this approach not only discourages investment but also damages investor confidence, both locally and internationally. He added that it is ironic that in a country striving to attract foreign direct investment (FDI), businesses already operating within the system are being overburdened with costs that undermine their competitiveness.
Referencing real-time examples during the interview, Oye highlighted how certain regulators impose overlapping charges for the same service under different guises. He cited a recent instance involving logistics firms that were made to pay multiple licensing fees to operate within a single jurisdiction, with no clarity on legal backing or service delivery attached to those levies.
He called for urgent reforms that would ensure transparency, reduce red tape, and harmonize regulatory activities. According to him, the solution is not to eliminate regulation but to streamline it in a way that supports productivity and protects both businesses and consumers. He advocated for a shift from punitive enforcement to partnership-based regulation that encourages compliance through education and support.
Oye also urged the National Assembly and the executive arm of government to intervene by reviewing obsolete laws and consolidating regulatory functions under fewer, more efficient institutions. He emphasized that achieving Nigeria’s economic goals, particularly around job creation and industrialization, would remain a mirage unless the regulatory climate becomes more conducive to growth.
His remarks echo growing concerns within the business community, with several trade groups, investors, and economic think tanks warning that Nigeria’s poor ease of doing business rankings are partly fueled by heavy-handed regulation and bureaucratic hurdles. As the nation grapples with inflation, forex instability, and energy challenges, business leaders like Oye are calling on policymakers to prioritize a more business-friendly regulatory framework that will drive sustainable economic recovery.
