Lagos State Government urged to reopen sealed factories, resolve water fee dispute

Stanley Ihedigbo

Manufacturers Association of Nigeria (MAN) has condemned the Lagos State Water Regulatory Commission (LASWARCO) for sealing several factories in Lagos State over unpaid water abstraction fees.

In an open letter to Governor Babajide Sanwo-Olu, MAN Director General Segun Ajayi-Kadir, described the action as “inauspicious” and “ill-timed.”

According to MAN, the commission’s decision to seal the factories was made despite ongoing discussions between the two parties to resolve the issue.

The association argued that the fees imposed by LASWARCO were “astronomical and unjustifiable,” and that the commission’s actions would have severe consequences for the state’s economy.

MAN noted that manufacturers in Lagos State were already struggling with numerous taxes, fees, and levies, as well as disruptions to production activities due to insecurity and high logistics costs.

The association urged Governor Sanwo-Olu to intervene in the dispute and order the immediate reopening of the sealed factories.

“There are more! So to add this oppressive water abstraction fee in Lagos state that may potentially be adopted by other States presents an ominous and rancorous future for manufacturers in particular and private businesses in general. MAN, therefore, implores the Governor of Lagos state to use his good office to order the immediate reopening of the closed factories.

“This will pave the 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 the Organised Private Sector.

“This is more so that the private sector is currently awaiting the finalization 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 socioeconomic implications, as well as the negative signal to the investing public, should serve as a deterrent and encourage a business-friendly regulatory environment, ” he stated.