Businesses the world over are affected by government policies. A 2016 McKinsey Global Survey on External Affairs found 40% of respondents emphasising that government regulations could have negative implications on the operating income of their organisations. A case in point in Nigeria was the 2021 import duty increment which impacted the livelihoods of cargo importers, and given our import-dependent economy, Nigerians generally.
In another vein, the recently signed Startup Bill stands to give Nigerian innovators the incentive needed to launch and stay afloat in our ultra-competitive business environment. But in a sea of competing interests, how does your business stand out? This is why organisations often need to nudge and partner with the Government towards enacting policies favourable to their ecosystem. Our job as government relations specialists is to strategically facilitate this process through our network of policymakers or government functionaries. There is no ethical challenge to this if practised professionally.
Some countries in North America and Europe have already begun giving government relations the attention it deserves. In the US, where lobbying is constitutional, the lobby hub is called ‘K Street’. The first amendment of the US Constitution gives citizens the right to petition the American government for a redress of grievances. In 2019, Cyprus took steps to set up an anti-corruption body to regulate the activities of lobbyists following its abysmal ranking on the 2015 Transparency International Report. In 2020, it established Zenox Public Affairs as a lobby group charged with bridging the communication gap between businesses and the government to provide stakeholders access to justice. This new-wave lobbying includes consultation, drafting and delivery of legislation to policymakers. France, Georgia, Canada, The UK, Poland and Germany are amongst 22 other countries where there is some form of regulation for lobbying.
The story is different in Africa, where many businesses and governments are still playing catch-up. Legislative and regulatory relations continue to be viewed as a ‘dark art’ on the continent with positive outcomes for only a select few. A good number of organisations and not-for-profits grapple with multi-level governments and regulatory crisis management. Changes in government and institutions often demand new regulatory frameworks and legal requirements and policies.
Nigeria still seems mired in the age-old misperception of government relations. In 2016, the Nigerian Senate sought to legalise lobbying with the ‘Bill for an Act for the Regulation and Registration of Lobbyists in Nigeria…’ sponsored by former Senator Dino Melaye. The Bill made provisions for lobbyists to register with the Corporate Affairs Commission (CAC) and also the Ministry of Justice, for the legal backing to practise as lobbyists in the Senate or House of Representatives. However, it was unable to scale the second reading.
Despite these setbacks, we cannot shirk our responsibilities as government relations professionals. I have been in this business for a long time and currently work with Honeywell Group as Senior Adviser, Government Relations. I believe ethical government relations is possible. The process works across the world, and there is no reason to think these results cannot be replicated in Africa as well.
But there is only so much we can achieve if the field is generally perceived as murky and unregulated. African government officials need to be deliberate about facilitating a regulatory framework for the practice of lobbying. This can only be accomplished if they pass bills for the regulation of lobbyists.
Businesses will continue to face challenges with the mercurial regulations associated with successive government administrations. However, different outcomes might be recorded if they actively engage lobbyists to advance their interests with proper relationship and reputation management. For this to be effective, their goals must be for the greater good of the audiences they serve or communities where they do business. For instance, take the Companies and Allied Matters Act (CAMA) passed in Nigeria in 2020, the Bill was clearly a product of lobbying by the Nigerian business community but the objective is to grow small businesses with less hassle in the incorporation process, limited liability partnerships and other innovations. The same goes for the Plant Variety Protection Act, which seeks to empower local farmers by providing them patent rights over their seeds—with increased food production as the ultimate goal.
A critical success factor for achieving the highlighted objectives of a government relations team is ensuring it is effective. Organisations must keep a tab on legislative bills that might impact their activities and this can now be done with legislative tracking softwares that scour the web for bills being debated, press releases or social media posts that can potentially boost grassroots support and shape the regulatory environment of organisations or businesses. At Honeywell Group, we constantly ensure that we are up to date with regulatory requirements across all our portfolio companies, using compliance checklists. Various business regulatory agencies regulate the activities of companies in Nigeria. While some of the agencies apply to all businesses regardless of the sector, others are specific to a particular sector. It is our job to identify which agency applies to our respective businesses and build the necessary relationships and tools to monitor changes to regulations and laws.
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