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Wale Oyerinde, NECA President
The Nigeria Employers’ Consultative Association has called on the Lagos State Water Regulatory Commission to support struggling businesses and halt the spread of misinformation and negative media campaigns.
NECA’s Director-General, Mr. Adewale Oyerinde, appealed in a statement on Thursday, describing the dissemination of such misinformation as tantamount to economic sabotage.
The call followed reports of the alleged closure of factories belonging to major manufacturing companies in Lagos by LASWARCO over claims of non-payment of water abstraction levies.
“The purported news of the sealing of the premises of some businesses on allegations of non-compliance with water abstraction regulations is not only misleading but also likely to send the wrong message about the already harsh business environment in the country.
“The reported comments and activities of the commission have the damaging potential to scare away investors, heighten employees’ fears about job security, and portray Lagos State as unwelcoming to legitimate businesses.
“All of this comes at a time when many multinationals are either exiting the country or undergoing global restructuring, with Nigeria—and Lagos in particular—being among the hardest hit by divestments and job losses. This is worrisome,” he said.
Oyerinde noted that businesses were currently navigating one of the most challenging economic periods in recent history, with many recording substantial losses.
He added that it was expected that the commission would devise innovative and legitimate means of generating revenue without exacerbating the difficulties faced by businesses.
Describing the demand for unjustifiable multimillion-naira water abstraction levies as unreasonable, Oyerinde criticised the imposition of such levies on businesses that already pay multiple taxes for the same activities.
“May we reiterate that it is the government’s responsibility to provide water for its citizens and businesses,” he stated.
He added that this fundamental responsibility was currently not being adequately fulfilled by the government.
“It would be highly insensitive, harsh, and punitive for the same government that has failed to provide sufficient water to also impose punitive levies on businesses forced to invest in providing water to sustain their operations,” he said.
The NECA director-general stressed that organised businesses were not opposed to responsible regulation. However, he stated that the association would use all legal and legitimate means to resist any form of high-handedness that lacked empathy for struggling Nigerian businesses.
“In the quest for revenue generation, the commission—and indeed all other regulatory agencies—should adopt a more legitimate and civil approach, rather than the predominant disruptive patterns of recent times.
“These patterns directly contradict the Federal Government’s efforts to attract investment, promote job creation, and facilitate responsible regulation,” Oyerinde said.
He appealed to Governor Babajide Sanwo-Olu to intervene in the matter to prevent further harm to businesses operating in Lagos.
The News Agency of Nigeria reports that on 24 December, LASWARCO sealed three companies for allegedly extracting large quantities of groundwater for commercial purposes without proper authorisation and compliance with regulations.
The affected companies are Nigerian Bottling Company (producers of Coca-Cola), FrieslandCampina (makers of Peak Milk), and Guinness Nigeria Plc.
(NAN)
