By Cross Udo, Abuja
The Organised Private Sector (OPS) has accused the National Assembly committees and ad-hoc committees of incessant harassment through continued invitations and summons for investigative hearings that are capable of driving the sector out of Nigeria.
The OPS also warned that if nothing was done to checkmate the situation, the country would face massive job losses, adding that many companies operating in Nigeria are gearing up to fold their operations and move to the neighbouring countries because of ongoing threats and incessant disruption of man hour by the National Assembly committees and ad-hoc committees.
The OPS that raised the alarm yesterday include the Manufacturers Association of Nigeria (MAN); Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); Nigeria Employers Consultative Association, NECA; Nigeria Association of Small-Scale Industries, NASSI, and Nigeria Association of Small and Medium Enterprises, NASME,
Briefing journalists in Abuja on the ugly development, the Director-General of MAN, Segun Ajayi-Kadir, who spoke of the OPS, said the overbearing attitude of the National Assembly committees and ad-how committees through various invitations and summons and threats of arrest, has made many businesses speed up their exit plans because of the “inhospitable business environment” they pose to their operations.
Ajayi-Kadir, flanked by members of the OPS, lamented that the threats, apart from disrupting man hours have “greatly affected the growth of businesses and establishment of new ones, and have also caused loss of millions of naira to many companies.”
According to him, “This has been a notable challenge since the 7th National Assembly, from 2012. Recently, several letters were received by our member companies from the Ad-hoc Committee on Non-Remittance to the National Housing Fund and Utilisation of the Fund from 2011 to Date, and the Ad-hoc Committee to investigate the Compliance of Ministries, Departments, and Agencies of government and corporate bodies with the Industrial Training Fund Act, amongst other committees.
“While we appreciate the efforts of the National Assembly and its various Committees and Ad-hoc Committees to investigate and carry out oversight functions on Ministries, Departments, and Agencies of government, we are of the view that sections 88 and 89 of the Constitution, relied upon by the Committees of the National Assembly does not apply to businesses in the private sector.” Ajayi-Kadir.”
He warned that if nothing was done to arrest the situation, it could lead to the closure of companies in the country, loss of employment by Nigerians, loss of revenue through taxes and levies from the companies, unrest, and an increase in insecurity.
He contended that the NASS action has created a duplication of the regulatory functions and activities of Ministries, Departments, and Agencies (MDAS) of government, with the National Assembly also assuming the roles, functions, and responsibilities of the MDAS and the Executive arm of government.
He said, “At a time when the economy is undergoing major macroeconomic and structural challenges, as well as struggling with the fallout of recent economic reform measures, we urge the National Assembly to focus on strengthening the capacity of the Executive Agencies to effectively carry out their functions, and refrain from carrying out any activities that would constitute a burden or destabilise law-abiding businesses in the form of duplicated audits/regulations.
“The achievement of the eight-point agenda of the current administration requires a conducive environment and active participation of the private sector. We crave the support and partnership of the National Assembly to enable the private sector to make its contribution to this national agenda.
“We are highly desirous of a constructive engagement with the leadership of the Committees and seek the urgent intervention of the leadership of the National Assembly to bring about an amicable solution and deepen our collaboration for the good of the country.”
The MAN DG said there are statutory agencies of government in the Executive Arm that have been saddled with the responsibilities to engage, inspect, audit, and apportion penalties for default (if any), ensure enforcement and compliance of provisions of laws and/ or legal instruments within their jurisdictions, institute legal actions against businesses in the private sector, where necessary, etc.
He explained, “The agencies have been engaging businesses in the private sector and also carrying out their responsibilities. Thus, they should be invited to give information and account for the levels of compliance as it relates to the provisions of their enabling laws and not private businesses. In order words, the National Assembly should not be the lawmakers and enforcers/implementers of the same laws
“Despite the above position, businesses in the private sector are continually being inundated with letters, invitations/summons from the National Assembly some of which are laced with threats.
“It should be noted that the various invitations, summons, and threats of arrest have the potential to further dampen the interest of foreign direct investors in the Nigerian economy. Also, it should interest you to note that many businesses have relocated out of the country and many others are rounding off their exit plan because of the inhospitable business environment.
“These summonses have become, to a large extent, a duplication of the functions of the agencies created under the Executive arm of government. Also, the numerous forced travels of business chief executives to attend the investigative sessions constitutes an avoidable distraction, loss of man-hours, and erosion of confidence in the system. All of these hurt business activities.
“At of one the hearings at the Ad-hoc Committee to investigate the Compliance of Ministries, Departments, and Agencies of government and corporate bodies with the Industrial Training Fund Act, last week, we were shocked at the development and manner in which the committee imposed financial deficit/liabilities and penalties against many companies and thereafter commenced negotiation.
“These, by Law, are not within the purview of the lawmakers. We are anxious that, if this trend remains unchecked, other Committees may adopt the same practice and the situation may degenerate into a bedlam.
“In response, we have over the years written several letters to the committees, requesting for dialogue on behalf of our members, to no avail. We have approached the committees as business membership organisations and through our lawyers, all to no avail.”
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*Manufacturing sector bleeding, MAN cries out
Meanwhile, the Manufacturers Association of Nigeria (MAN) has cried out that the manufacturing sector in the country is currently bleeding due to the poor state of the economy in recent times.
MAN’s DG, Ajayi Kadiri, gave this remark during an interview on the Arise TV Morning show while answering questions on Organised Labour’s negotiation with the Federal Government.
Answering questions on why the government needs to ensure there is no further strike from labour unions, Kadiri said, “The President needs to get the job done and there should be no excuse about how Nigerians should be able to continue with our lives.”
“I mean, manufacturing is bleeding, we have had the exit of GSK, Unilever has had to discontinue three of its oldest branches and there are so many industries that have capacity utilisation not above 50 per cent for a very long time.”
“Inflation is at an 18-year high, the prognosis is not just right. The government needs to bend over backward and meet the demands of labour. I don’t see how Nigerians can survive an indefinite strike”
Speaking on whether organised labour should heed the Federal Government’s demand for more time, Kadiri opined that such a request worries him because four months have passed since the new administration came on board and introduced reform.
He said such requests should be followed by concrete steps that the government will take and timelines of what will be done within the time.
On whether the current minimum wage of N30,000 is adequate for the Nigerian worker, Kadir said, “In the real sense N30,000 today in Nigeria is grossly inadequate for anyone to live on but we also know that the economy is going through trying times and coming from N18,000 to N30,000 may look like some form of improvement. I believe that there have to be several other supportive measures.
