Korede Abdullah in Lagos
The Manufacturers Association of Nigeria (MAN) has strongly condemned the Lagos State Water Regulatory Commission (LASWARCO) for sealing several factories in Lagos over alleged non-compliance with water abstraction regulations.
In an open letter to Governor Babajide Sanwo-Olu, MAN Director General Segun Ajayi-Kadir expressed the association’s disappointment and frustration with LASWARCO’s actions,
The letter read in part, “MAN is appalled by the inauspicious act of LASWARCO in sealing factories over their purported refusal to pay the astronomical and unjustifiable water abstraction fees imposed by the Commission”.
Ajayi-Kadir emphasized that the sealing of factories is ill-timed and unfortunate, particularly given the prevailing challenging operating environment and the downturn in the manufacturing sector.
He noted that industries are already burdened with excessive payments, including over N100 million for generating water for production purposes, despite the government’s failure to supply water.
Ajayi-Kadir also highlighted the numerous taxes, fees, and levies imposed on manufacturers, which can range from 60 to 120, and the disruption of production activities due to insecurity and high logistics costs.
The affected companies include Nigerian Bottling Company, FrieslandCampina, and Guinness Nigeria Plc, which were sealed for extracting large quantities of groundwater without proper authorization.
MAN urged Governor Sanwo-Olu to intervene and order the immediate reopening of the closed factories, which would allow for a logical and passable conclusion of the ongoing conversations on resolving the matter of outstanding fees and concluding the impending MoU between LASWARCO and the Organised Private Sector.
Ajayi-Kadir warned that the sealing of factories presents an ominous future for manufacturers and private businesses, emphasizing that “MAN therefore implores the Governor of Lagos state to use his good office to order the immediate reopening of the closed factories”.
