Newscenter Media News Nigeria Employers’ Consultative Association (NECA) has raised an alarm that the Lagos State is sending a wrong message to investors over the recent sealing of three factories in the state for extracting large quantities of groundwater without proper authorisation.
This action, NECA warns, is capable of scaring investors away from the state.
Earlier in the week, the state government through the Lagos State Water Regulatory Commission (LASWARCO) sealed the factories of Nigerian Bottling Company (producers of Coca-Cola), FrieslandCampina (makers of Peak Milk), and Guinness Nigeria Plc – for extracting large quantities of groundwater without proper authorisation.
Reacting to the development, NECA’s Director-General, Mr Adewale-Smatt Oyerinde in a statement issued on Thursday December 26, 2024 warned that this is likely to send the wrong message on the already harsh business environment in the country.
He consequently appealed to Governor Babajide Sanwo-Olu to intervene in the matter to save businesses in Lagos from further woes.
“The reported comments and activities of the commission have the damaging potential of scaring away investors, aggravating employees’ apprehension about the security of their jobs, and portraying Lagos State as unwelcoming for legitimate businesses.
“All these at a time when many multinationals are either exiting the country or carrying out a global restructuring with Nigeria and Lagos especially being one of the hardest hit nations/states in divestments and job losses, is worrisome,” he said.
Oyerinde said that businesses had faced probably the harshest economic situation in recent times, with many declaring humongous losses.
He said it was expected, therefore, that the commission would be innovative enough to come up with legitimate ways to generate revenue without adding to the woes of businesses.
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Oyerinde described the demand for unjustifiable multimillion sums as water abstraction levies from businesses that had already paid many other forms of taxes for the same activities they use the water for as unreasonable.
“May we reiterate that it is the responsibility of the government to provide water for its citizens and businesses,” he said.
He noted that the government was not currently fulfilling this noble responsibility.
According to him, it will be highly insensitive, harsh and punitive for the same government that has failed to adequately provide water to also impose punitive levies on businesses that are constrained to make investments in providing water to run their businesses.
The DG emphasised that organised businesses were not against responsible regulation.
He, however, noted that the association would embark on all legal and legitimate means to resist any form of high-handedness that did not demonstrate empathy with the plight of 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 pattern of recent times.
“Those patterns are directly against the efforts of the Federal Government to attract investment, promote job creation and facilitate responsible regulation,” Oyerinde said.
By: Babajide Okeowo
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