The Chairman, Toiletries & Cosmetics Manufacturers Group, Manufacturers Association of Nigeria (MAN); Mr Ikpon Umoh, has fingered the multiplicity of regulatory agencies at the ports as one of the major hindrances to the proper implementation of the recent Executive Order on the ease of doing business, recently given by the acting President.
He said this yesterday at a lecture organised in Lagos by Financial Business Team, tagged "Understanding the Executive Order on the Ease of doing Business".
Speaking during the event, he said that the incidence of multiplicity of regulatory agencies has always resulted in the high cost and difficulty of doing business.
"The cosmetics industry all over the world is statutorily regulated by the Food and Drug Agency; FDA in United States and by the National Agency for Food and Drugs Administration (NAFDAC) in Nigeria. The recent empowerment of Standard Organization of Nigeria to regulate the industry that is already being regulated by NAFDAC is double regulation and needs to be addressed by the executive order. We have the impression that the repeal of the recent SON act 14, 2015 did not have wide consultation and implementation as is definitely will wipe out our fragile SMEs".
He also advised the government that in other to encourage local manufacturers, it should not shy away from prohibiting goods that can be produced in Nigeria should be banned from coming into the country even as he accused the government of not protecting local manufacturers.
"The imports prohibition list was introduced by the Federal Government before the advent of CET and aimed at preventing the importation and dumping of products which can be manufactured her in Nigeria".
"We need government protection by prohibiting the importation of all kinds of cosmetics products into Nigeria other bilateral agreement entered into notwithstanding", he said.
He also added that some basic and bulk raw materials for manufacturing quality cosmetic products not sourced locally and classified under HS Code 3402, are currently levied 20% +5% VAT as if they are finished products is gross violation of CET rules.
"This high duty was a conspiracy between some multinationals among us who advised government through MAN to impose that duty in order to protect their investment as they suspect some unscrupulous people hid under the tarrif heading to bring in finished soaps".
Meanwhile the founder of the National Association of Government Approved Freight Forwarders; Dr Boniface Aniebonam, said that the ease of doing business is a human problem even as he maintained that it is a total indictment of the system.
"There is system collapse, the entire system has collapsed. The ease of doing business is indicting all the government agencies in the ports. By ease of doing business, what the government asked agencies to do is for them to go to their way, wherein there is no more road blocks", he concluded.
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