Man flays Lagos govt over alleged oppressive water abstraction fee
28 December 2024 |
3:22 am
The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi Kadir, has said the association is appalled by the act of the Lagos State Water Regulatory Commission (LASWARCO) in sealing factories over their purported refusal
• Urges Sanwo-Olu To Re-open Sealed Factories
The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi Kadir, has said the association is appalled by the act of the Lagos State Water Regulatory Commission (LASWARCO) in sealing factories over their purported refusal to pay what he described as the astronomical and unjustifiable water abstraction fee imposed by the commission.
This action, he said, is ill-timed and unfortunate; adding that the commission and MAN had previously engaged in dialogue and reached some agreements over the lingering issue three months ago.
In an open letter to the Lagos State Governor, Babajide Sanwo-Olu, which was seen by The Guardian on Friday, he lamented that all attempts at reaching the relevant heads of agencies and ministry had failed.
The DG said the previous agreement reached with the agency was supposed to culminate in an MoU to commence in January 2025, adding that just three weeks ago, another round of discussions took place between LASWARCO and MAN representatives as well as affected member companies, which led to ongoing discussions in the companies as to the most viable option for addressing the alleged outstanding payments from earlier contested fees.
He regretted that while these discussions were still ongoing, the commission decided to go behind their backs and shut down the companies during Yuletide.
“It is important to properly situate this inappropriate action within the context of the prevailing inclement operating environment in general and the downturn in the manufacturing sector in particular. A situation where industries are burdened with payments in excess of N100 million for generating water for production purpose, in the face of government’s failure to supply same, is unfair,” he said. He said the exorbitant fees and untoward means of extracting payment exemplifies the negative impact of tyranny of regulation on private business.
“To date, manufacturers across the country are saddled with over N1.2 billion of unsold inventory, borrowing at over 30 per cent and struggling under a debilitating 250 per cent increase in the cost of power.
“Numerous taxes, fees and levies by the three tiers of government and non-state actors in some cases, numbering between 60 and 120 confront each manufacturer, not to mention the disruption of production activities due to insecurity and high cost of logistics.”
He went on to add that the water abstraction fee in Lagos State, which may potentially be adopted by other states, presents an ominous and rancorous future for manufacturers in particular and private businesses in general.
He implored the governor to use his good offices to order the immediate reopening of the closed factories and make way for a logical and passable conclusion of the ongoing conversations on how to permanently resolve the matter of outstanding fees, as well as conclude the impending MoU between the Water Commission and OPS.
“This is more so that the private sector is currently awaiting the finalisation of the text of the MoU from LASWARCO. We are full of expectations that immediate action is taken in the interest of the state’s economy and to forestall a possible degeneration in the already tense business atmosphere. The possible loss of jobs and its attendant socio-economic implications, as well as the negative signal to the investing public, should serve as deterrent and encourage a business friendly regulatory environment,” he said.
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