CPPE seeks policies to protect local investors, employers for speedy growth
The Centre for the Promotion of Private Enterprise (CPPE) has called for urgent laws that protects rights of local investors and labour employers to foster sustainable economic growth and social stability.
Dr Muda Yusuf, CPPE’s Director/Chief Executive Officer made the call in a policy statement on Sunday in Lagos.
Yusuf identified vulnerabilities of investors and employers which must be addressed with dispatch.
He described investors, entrepreneurs and employers as lifelines of every modern economy, adding that their rights and investments remained inadequately protected in Nigeria while significant legal safeguards exist for workers and employees.
“This imbalance undermines investor confidence and leaves those who create jobs vulnerable to disruptions, particularly from industrial actions by labour unions.
“The real sector is especially exposed, given its large workforce, high fixed costs and significant sunk investments,” he said.
He expressed concern over unlimited powers of regulatory institutions, while calling for a fair policy balance that also protects rights of investors and employers.
Yusuf listed sources of vulnerability to include weak legal protection, unrestrained union actions, regulatory unpredictability, bureaucratic bottlenecks and weak dispute resolutions.
According to him, together, these factors erode Nigeria’s competitiveness, deter both local and foreign investment and slow economic growth and job creation.
“Investors mobilise capital, create jobs and generate the tax revenues that sustain government and society, and without them, there cannot be sustainable growth, employment and national prosperity.
“Nigeria must, therefore, urgently institutionalise a fair, secure and predictable business environment that protects those who take risks to create wealth.
“This is not about weakening labour unions, but about balancing rights and responsibilities to foster sustainable economic growth, social stability and national security,” he said.
In the policy brief titled: “Protecting Investors And Employers: A National Policy Imperative”, the CPPE boss explained both macroeconomic and social consequences of investors’ vulnerability.
According to him, when investors lose confidence, capital flight intensifies, foreign direct investment declines and domestic enterprises contract their operations.
“The resulting chain reaction includes job losses, declining tax revenues and reduced economic growth.
“Unrestrained strikes in strategic sectors such as energy, transport and health disrupt production, threaten national security and endanger public welfare.
“Policy inconsistency and regulatory arbitraliness make long-term planning difficult, deepening Nigeria’s dependence on imports and weakening its industrial base.
“Without corrective reforms, these trends will continue to erode national competitiveness, discourage innovation and diminish Nigeria’s economic resilience,” he said.
Yusuf called for legal and institutional reforms, urging the nation to enact a dedicated Investor and Employer Protection Act to provide a strong legal foundation for safeguarding investors’ rights.
He said that the Act should, among its provisions, codify the rights and obligations of investors, employers, regulators and unions; prohibit unlawful actions; establish penalties, damages and restitution mechanisms for violations.
He said that the Industrial Arbitration Panel (IAP) should be strengthened for faster, impartial resolution of industrial disputes while an Independent Investment Ombudsman Office should be created to handle investors’ complaints and disputes.
The CPPE boss also called for transparency, integrity and accountability of labour unions, adding that their activities must align with the law and national interest.
He called for regulatory and policy stability, among other calls towards implementation of frameworks to restore investor confidence and attract both domestic and foreign capital.
“Adopting the right policies will also stimulate private-sector job creation and expand fiscal revenues; reduce strike-related disruptions and strengthen Nigeria’s competitiveness, industrial productivity and economic resilience,” he said.
NAN
