The Producers Affiliation of Nigeria (MAN) has condemned what it described as “unwise, unwarranted, and ill-timed” sealing of some manufacturing industries in Lagos by the state authorities.
In a press release signed by the affiliation’s Director Basic, Segun Ajayi-Kadir, MAN stated it was appalled by the motion, including that it was already in talks with related companies within the state over the problem.
Nairametrics reported that the Lagos State Water Regulatory Fee (LASWARCO) sealed industries of the Nigerian Bottling Firm (producers of Coca-Cola), FrieslandCampina (makers of Peak Milk), and Guinness Nigeria Plc. for violating water abstraction laws of their operation.
The fee’s Director of Technical Companies, Mr. Olowu Babatunde, stated on Tuesday that the businesses had been extracting giant portions of groundwater with out correct authorisation.
In his assertion launched on Friday, MAN’s DG stated the federal government’s determination was ill-timed and accomplished in dangerous religion as talks had been ongoing concerning the situation between each events. He stated efforts to succeed in the authorities after the shutdown had been futile.
He stated: “The Producers Affiliation of Nigeria (MAN) is constrained to convey this open message to the Governor of Lagos State, as all makes an attempt at approaching the related heads of companies and ministry have failed. MAN is appalled by the inauspicious act of the Lagos State Water Regulatory Fee (LASWARCO) in sealing factories over their purported refusal to pay the astronomical and unjustifiable water abstraction charges imposed by the Fee.
This motion is ill-timed and fairly unlucky, because the Fee and MAN had engaged in significant dialogue and reached some agreements over the lingering situation about three Months in the past. This was anticipated to culminate in an MoU to start in January 2025.
“Solely three weeks in the past, one other spherical of discussions befell between LASWARCO and representatives of MAN, together with affected member firms, which led to ongoing discussions within the firms as to probably the most viable choice for addressing the alleged excellent funds from earlier contested charges. It’s whereas these discussions had been occurring and through the Yuletide that the Fee determined to trigger this main and unwise shutdown of the businesses.”
Exorbitant regulatory charges amidst poor gross sales
He accused the Lagos state authorities of being tyrannical in its regulation and imposing exorbitant charges on producers at a time when the business is going through a downturn.
He stated the business spends rather a lot on water for manufacturing as the federal government fails to provide water.
“You will need to correctly situate this inappropriate motion inside the context of the prevailing inclement working setting normally and the downturn within the manufacturing sector specifically. A state of affairs the place industries are burdened with funds in extra of N100 million for producing water for manufacturing functions, within the face of the federal government’s failure to provide the identical, is unfair.
“The exorbitant charges and the untoward technique of extracting cost exemplifies the adverse impression of the tyranny of regulation on non-public enterprise,” the assertion learn additional.
Mr. Ajayi-Kadir lamented that producers are enduring a harsh financial local weather as the quantity of unsold inventories retains rising. He expressed considerations over the potential of different states taking comparable enforcement motion because the Lagos state authorities.
“Up to now, producers throughout the nation are saddled with greater than N1.2 billion of unsold stock, borrowing at greater than 30% and struggling underneath a debilitating 250% enhance in the price of energy.
“Quite a few taxes, charges, and levies by the three tiers of presidency and non-state actors in some circumstances, numbering between 60 to 120 confront every producer, to not point out the disruption of manufacturing actions attributable to insecurity and excessive value of logistics. There are extra! So so as to add this oppressive water abstraction payment in Lagos state that will doubtlessly be adopted by different States presents an ominous and rancorous future for producers specifically and personal companies normally,” he added.
He pleaded with Governor Babajide Sanwolu to prevail on LASWARCO to reopen the sealed services whereas MAN and the company resume discussions.
“It will pave the best way for a logical and satisfactory conclusion of the continued conversations on how you can completely resolve the matter of excellent charges, in addition to conclude the approaching MoU between the Water Fee and the Organised Personal Sector,” he stated.
What you need to know
- Nairametrics reported that the Lagos State Environmental Administration Safety Legislation of 2017 grants LASWARCO the authority to supervise groundwater abstraction and penalise organisations that fail to adjust to the laws.
- Yesterday, the Nigeria Employers’ Consultative Affiliation (NECA) warned that the closure of the three services by LASWARCO might scare buyers away from the state.
- NECA’s Director-Basic, Mr Adewale-Smatt Oyerinde described the demand for multimillion sums of water abstraction levies by the Lagos state authorities as unreasonable, noting that producers already pay many different taxes on the identical actions they use water for.
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