Lack of effective regulations throwing up big businesses in Nigeria ―Moghalu

Former Deputy Governor, Central Bank of Nigeria (CBN) and presidential candidate, Young Progressive Party (YPP)  at the 2019 general elections,  Professor Kingsley Moghalu, has stated that some of the nation’s corporate organisations became big by exploiting the weak and ineffective regulations of the nation’s business space.

Moghalu, who made this observation, while speaking on ‘Business Ethics and Corruption’ at the on-going  Africa Business Ethics Conference 2020, organised by the Lagos Chamber of Commerce and Industry (LCCI), stated that it had become imperative for the government to come up with strong and effective reforms of the nation’s business space, that would provide a level-playing field for all operators in the organised private sector.

The political economist and lawyer also described the present regulatory structure as skewed, since all a business needed to enhance its bottom-line was to have the critical connections with those in government.

Moghalu also noted that it would be difficult to expect ethical standards from businesses in the private sector when the public space was rife with corruption.

According to him, despite the fact that the private sector drives the nation’s economy, just like in other climes, it still remains not as independent as it should be.

“In every country, economic policies drive the private sector. In Nigeria, even though the private sector carries the economy, the government still plays such an influential role. But when the state is weak,  as we see in Nigeria, it’s just going to be difficult to create an environment for ethical business to thrive.

“I think we are making a mistake to think we can have a thriving business environment without addressing the issue of absence of ethics in the public sector. It is very difficult to achieve an ethical business culture when the public sector is so rife with corruption. 

“The structure of the Nigerian state permits rent-seeking, and rent-seeking comes along with corruption. Many businesses are big in Nigeria because they are in bed with the government, while those without strong business connections will continue to suffer.

“We need direct strong regulatory reforms to be able to enforce ethical standards in our business place,” he stated.

Professor Moghalu also counselled the nation’s organised private sector on the need to move from shareholder capitalism to state-holder capitalism, that would afford workers the opportunity of being part-owners of their companies. This, he stated, would go a long way in engendering an inclusive economy in Nigeria.

Speaking at the event, the Director-General of LCCI, organisers of the event, Dr Muda Yusuf, explained that the decision to come up with the topic was informed by the need to see how the issue of unethical business practices had affected the growth of businesses in Nigeria and recommend the way out of the challenge.

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