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The Lagos Chamber of Commerce and Industry has expressed concerns over the spate of regulatory sanctions imposed on companies in recent times, saying the developments may be counter-productive to the Federal Government’s efforts to attract foreign investments into the country.

The LCCI, in a statement on Sunday, specifically said the N1.0498tn fine imposed on five companies in recent weeks could push Nigeria’s ranking further backward in the World Bank’s Ease of Doing Business and World Economic Forum’s Global Competiveness Index.

It listed the companies as MTN Nigeria, Guinness Nigeria Plc, First Bank of Nigeria Limited, United Bank for Africa Plc and Skye Bank Plc.

The Nigerian Communications Commission had recently imposed N1.04tn ($5.2bn) fine on MTN Nigeria over non-registration of Subscriber Identity Module cards, while the National Agency for Food and Drug Administration and Control also fined Guinness Nigeria N1bn administrative charge

Similarly, the Central Bank of Nigeria also imposed N4bn, N1.9bn and N2.9bn fines on Skye Bank, First Bank and UBA respectively recently for concealing Federal Governments funds in violation of the Treasury Single Account policy.

While restating its aversion for infraction of extant regulations, the LCCI said it expected sanctions to be “proportionate and corrective”, pointing out that the recent regulatory sanctions were “severe, arbitrary and disproportionate.”

The statement by the President, LCCI, Alhaji Remi Bello, read in part, “The LCCI is a firm believer in the ideals of good corporate governance and adherence to best practices in business. The LCCI will not support impunity under whatever guise.

“However, we also desire that the activities of regulatory institutions be in consonance with best regulatory practice. We believe that sanctions should be proportionate and corrective. It should not be of such magnitude as to impose a shock from which recovery by firms may either be difficult or impossible.”

According to the chamber’s president, there is need for a clear framework on the imposition of sanctions or penalties, while noting that the limit of regulatory discretional powers must be clearly defined.

“The concern is that such powers are commonly prone to abuse and could predispose regulatory agencies to high-handedness and intimidating disposition; this certainly would not augur well for an economy that needs to attract investment,” Bello added.

The LCCI leader noted that the perception and ranking of Nigeria as an investment destination was already unsatisfactory.

He explained, “For instance, Nigeria ranks 169 out of 189 countries profiled in the World Bank Ease of Doing Business Report for 2015. It also has a ranking of 124 out of 140 countries profiled in the global competitiveness report of the World Economic Forum. The regulatory environment is critical factor in this ranking performance of Nigeria. This is therefore not the time for intimidating and overbearing regulatory tendencies.

“While we do not condone infractions of extant regulations or guidelines, we believe there should be some restraint in the imposition of penalties by regulatory agencies in the interest of private sector development and the advancement of the Nigerian economy.”