The Organised Private Sector (OPS) has identified regulatory risk as a major challenge facing Nigerian businesses currently while advocating for a national strategy in policy formulation to forestall rising cases of collapse in the country.
At the just-concluded Regulatory Conversations 4.0 with the theme: “Foreign exchange restrictions on food imports and implications for regulating and growing the Nigerian economy,” in Lagos, the stakeholders submitted that regulatory risk can lead to the increased cost of operations, which would ultimately lead to business failure if not well managed.
Regulatory risk is the concern that a change in regulations or legislation will affect investment, company or industry.
Specifically, the Founder of Centre for Value in Leadership, Prof. Pat Utomi, argued that many companies had already collapsed in Nigeria due to regulatory risk and lack of national strategy.
“We should have a clear national strategy that we want to join the league of global leaders. We can do isolated industrial policy on those areas that our endowments allow us to become competitive globally and ensure we dominate that value chain,” Utomi said.
He argued that negative legitimacy would not take the country anywhere but instead would destroy businesses as well lead to an increase in the unemployment rate.