In every successful economy, effective regulation provides confidence for investors and reassurance for consumers, and regulation is an essential responsibility of the government. It protects consumers from unsafe products, ensures fair competition, safeguards the environment and promotes accountability in business.
However, regulation stops being a public good when it becomes excessive, duplicative and expensive. Instead of protecting citizens, it begins to punish businesses, discourage investment and, ultimately, transfer the burden to consumers through higher prices and fewer choices, which is part of the dilemma confronting Nigeria today.
For years, manufacturers and business owners have complained about multiple taxes, overlapping agencies, conflicting directives and endless compliance requirements that consume time, money and managerial attention. According to the Manufacturers Association of Nigeria (MAN), some manufacturers contend with more than 60 different taxes and levies, alongside multiple registrations, duplicate tax stamps and repeated inspections by agencies performing similar functions.
The Federal Government’s recent commitment to simplify regulations and reduce administrative bottlenecks is therefore a welcome development. The promise to eliminate multiple taxation, simplify compliance and leverage technology represents an important shift in policy direction. But Nigerians have heard similar promises before, and what matters now is implementation.
