The Organized Private Sector of Nigeria (OPSN), a coalition of prominent business associations, has expressed deep concerns over the escalating practice of National Assembly committees summoning private companies for inquiries. This practice, they argue, poses a significant threat to Nigeria’s economic stability and discourages much-needed foreign investment. The OPSN, which includes influential bodies like the Manufacturers Association of Nigeria (MAN), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), and the Nigeria Employers’ Consultative Association (NECA), among others, has formally appealed to President Bola Tinubu to intervene and curb this trend. They contend that these summonses create unnecessary regulatory duplication, effectively encroaching on the executive branch’s domain, and contradict established legal precedents regarding the legislature’s oversight powers.
The OPSN’s core argument centers on the assertion that these parliamentary summonses are not only disruptive but also legally questionable. Citing the case of DHL International Nigeria Limited vs. Senate of the Federal Republic of Nigeria, the group emphasizes that existing legal interpretations restrict the National Assembly’s investigative powers to matters concerning public funds and the administration of laws within public sector agencies. Private companies, they argue, fall outside this purview. The continuous summonses, they explain, create a climate of uncertainty and unpredictability, which is detrimental to investor confidence. This unpredictability, coupled with the increasing burden of compliance with these summonses, negatively impacts the ease of doing business in Nigeria, a key focus of the current administration’s economic recovery plan.
The financial and operational burdens imposed on private companies by these summonses are substantial and far-reaching. Executives are forced to make frequent trips to Abuja, incurring significant costs for travel, accommodation, legal representation, and documentation. Moreover, these trips disrupt business operations, pulling key personnel away from their core responsibilities, resulting in productivity losses, missed deadlines, and a weakened competitive edge for Nigerian businesses in the global market. This practice, the OPSN warns, could ultimately lead to job losses and further exacerbate the unemployment challenges the country currently faces. The OPSN emphasizes that they are not opposed to legislative oversight or regulation but maintain that such activities should be conducted within the confines of the law and in a manner that fosters, rather than hinders, economic growth.
The OPSN stresses the critical need for a predictable and stable regulatory environment, supported by consistent policies and incentives, to foster sustainable economic growth. These summonses, they assert, undermine this stability and create an environment of uncertainty that deter investment, both domestic and foreign. They warn that this practice could significantly damage Nigeria’s reputation as an investment-friendly destination, jeopardizing efforts to attract the capital needed to drive inclusive growth and job creation. The OPSN has called on President Tinubu to ensure a clear delineation of authority between the legislative and executive branches concerning regulatory oversight, safeguarding the existing regulatory framework from undue interference.
The OPSN’s appeal to President Tinubu highlights the importance of maintaining a clear separation of powers between the different branches of government. Their argument rests on the principle that regulatory oversight of private companies falls squarely within the remit of the executive branch through its various ministries, departments, and agencies. The National Assembly’s involvement in this domain, they argue, creates unnecessary duplication and confusion, blurring the lines of authority and creating an environment of uncertainty. This blurring of lines, they contend, weakens the overall regulatory framework and undermines the government’s efforts to improve the ease of doing business in Nigeria.
The OPSN’s letter underscores the delicate balance between legislative oversight and the need for a stable and predictable regulatory environment. They urge President Tinubu to intervene not only to protect the interests of the private sector but also to safeguard the broader economic interests of Nigeria. By ensuring a coordinated approach to regulation and respecting the established legal boundaries of legislative oversight, the government can foster a more conducive environment for investment, job creation, and sustainable economic growth. The OPSN has expressed its willingness to collaborate with the government to find practical solutions that promote Nigeria’s economic transformation. This collaborative approach, they believe, is essential for creating a regulatory framework that supports both business growth and national development.
