The Lagos Chamber of Commerce and Industry has condemned the services of some government agencies saying that there were overlapping regulatory approvals, delays in product registration; bureaucratic bottlenecks, exorbitant charges and high incidence of extortion.
Mr. Goodie Ibru, president, Lagos Chamber of Commerce and Industry, noted this at the second quarterly assessment of the economy in Lagos. According to him, “some of the institutions concerned are Nafdac, Son and some agencies at the state level”.
Ibru disclosed that the chamber has undertaken a survey of some enterprises across sectors to determine practical issues which are affecting the manufacturing industries.
He explained that the power situation the first half of the year was unsatisfactory; firms’ expenditure on diesel and petrol was unbearable. This development impacted negatively on investment with increased expenditure on diesel and petrol by enterprises.
“It is curious that in the midst of all these shortcomings, electricity tariff is being reviewed upwards. The programmed periodic increase in fixed charge is unfair to electricity consumers and should be reversed. There should be a good balance between the protection of the interest of investors and that of the consumers,” he said.
He stated that the influx of substandard products which have taken a huge toll on market share of many manufacturing companies and also, manufacturers suffer serious delays as a result of approval processes of Standard Organisation of Nigeria (Son) as well as Nafdac. “Many manufacturers have suffered losses as a result of these delays”.
Ibru noted that the influx of used spare parts as well as substandard spare parts has become a major problem for enterprises in the sector which currently accounts for about 80 per cent of market share.
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