The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has asserted its position as the true representative of Nigeria’s business potential, surpassing any government ministry or agency. NACCIMA President, Dele Oye, emphasizes the private sector’s crucial role as the nation’s primary “salesmen,” advocating for government recognition of their influence in both local and foreign direct investment. He argues that the private sector’s international network and credibility make them far more effective in attracting foreign investment than government officials. Oye points to the example of Free Trade Zones, where positive word-of-mouth from successful businesses operating within these zones can draw significant international interest. He contends that government bodies lack the same global reach and recognition, limiting their effectiveness in attracting foreign investment. NACCIMA believes that government efforts should focus on creating an enabling environment rather than attempting to directly solicit investments.
Oye criticizes the government’s tendency to sideline the private sector in international business engagements, highlighting the absurdity of government officials leading delegations purportedly representing the private sector abroad. He argues that such practices undermine the credibility of Nigerian businesses and make them appear subservient to the government. NACCIMA’s decision to cease participation in these government-led trips underscores their frustration with this dynamic. They insist that the government’s role should be limited to facilitation, allowing the private sector to take the lead in international business interactions. This shift in approach, NACCIMA argues, would project a more professional and competent image of Nigerian businesses to the world. The government, they assert, should focus on creating a conducive environment for businesses to thrive, rather than attempting to act as their international representatives.
While acknowledging the government’s role in providing enabling infrastructure, regulatory frameworks, and security, Oye emphasizes the private sector’s capacity to drive investment, both local and foreign. He criticizes the government’s apparent preference for courting foreign investors while neglecting the immense potential of domestic businesses. This bias, according to Oye, is evident in the government’s allocation of resources, with significant sums spent on international trips to attract foreign investment while local businesses grapple with inadequate infrastructure and a challenging business environment. Oye highlights the substantial contributions of the private sector to the national economy, citing impressive tax revenues collected by the Federal Inland Revenue Service and the Nigeria Customs Service. These figures, he argues, demonstrate the inherent strength and potential of local businesses, despite the obstacles they face.
Oye points out a disconnect between the government’s revenue expectations and its support for the private sector, comparing the situation to expecting high poultry production without adequate feeding. He laments the deplorable state of infrastructure leading to factories and industrial zones, arguing that this neglect significantly hampers productivity and competitiveness. Nigerian businesses, he explains, are forced to bear the burden of providing their own power, infrastructure, and security, adding to their operational costs and making them less competitive compared to their counterparts in countries like Ghana. This, according to Oye, underscores the need for the government to prioritize investment in critical infrastructure to unlock the full potential of the Nigerian private sector.
The NACCIMA president further criticizes the government’s policies that increase the cost of doing business, such as escalating electricity tariffs and multiple layers of taxation. He cites the example of businesses facing numerous levies from various local government agencies, even for something as basic as displaying a business signboard. These cumulative burdens, he argues, stifle business growth and discourage investment. Oye calls for a more streamlined and business-friendly regulatory environment, urging the government to reduce the bureaucratic hurdles and excessive taxation that impede private sector development. He emphasizes the need for a collaborative approach between the government and the private sector to address these challenges and create a more conducive environment for business to flourish.
Despite the challenges and frustrations, NACCIMA remains committed to collaborating with the government for the collective good. Oye reiterates NACCIMA’s dedication to supporting government agencies and working towards shared success. He clarifies that their public criticisms are not intended to be adversarial but rather constructive feedback aimed at improving government policies and fostering a more productive relationship. Recent meetings between NACCIMA leadership and the Federal Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, suggest a potential shift towards greater collaboration. The minister’s pledge to develop a framework for partnership with NACCIMA by January 2025 provides a glimmer of hope for a more productive and mutually beneficial relationship between the government and the private sector. The outcome of this promised framework will be crucial in determining the future trajectory of private sector development in Nigeria.
