MAN calls for reopening of sealed Lagos factories

The Manufacturers Association of Nigeria (MAN) has called on Babajide Sanwo-Olu, governor of Lagos state to reopen factories sealed by the Lagos State Water Regulatory Commission (LASWARCO).

Segun Ajayi, director general of MAN said the message was conveyed to the governor as all attempts at approaching the relevant heads of agencies and ministry failed, stating that the closure was unwarranted and ill-timed.

“MAN is appalled by the inauspicious act of the LASWARCO in sealing factories over their purported refusal to pay the astronomical and unjustifiable water abstraction fees imposed by the Commission,” Ajayi said in a statement.

He also said that their action was ill-timed and quite unfortunate, stating that the Commission and MAN had engaged in meaningful dialogue and reached some agreements over the lingering issue about three months ago.

“This was expected to culminate in an MoU to commence in January 2025.

“Only three weeks ago, another round of discussions took place between LASWARCO and representatives of MAN, including 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.

“It is while these discussions were going on and during the Yuletide that the Commission decided to cause this major and unwise shut down of the companies,” MAN DG said.

He further said that 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 purposes, in the face of the government’s failure to supply the same, is unfair,” Ajayi noted.

He added that the exorbitant fees and the 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 more than N1.2 billion of unsold inventory, borrowing at more than 30 percent and struggling under a debilitating 250 percent 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 to 120 confront each manufacturer, not to mention the disruption of production activities due to insecurity and high cost of logistics,” Ajayi said.

MAN therefore urged the Governor of Lagos state to use his good office to order the immediate reopening of the closed factories this will pave 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.

He stressed that the socioeconomic implications of the dispute such as loss of jobs, as well as the negative signal to the investing public should serve as a deterrent and encourage a business friendly regulatory environment.