NECA accuses Lagos Water Commission of disrupting businesses

The Nigeria Employers’ Consultative Association (NECA) has raised concern about the disruption of businesses by the Lagos State Water Regulatory Commission (LASWARCO), urging the commission to rather support struggling businesses in the state.

Adewale-Smatt Oyerinde, NECA’s director-general, stated this on Thursday, and urged the commission to stop misinformation about businesses, saying such was tantamount to economic sabotage.

This followed the purported closure of the factories of some major manufacturing companies in Lagos by LASWARCO on allegations of non-payment of water abstraction levies.

“The purported news of the sealing of the premises of some businesses on the allegation of non-compliance with water abstraction regulations is not only misleading but also likely to send the wrong message on the already harsh business environment in the country.

“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.

Oyerinde described as unreasonable 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.

“May we reiterate that it is the responsibility of the government to provide water for its citizens and businesses.”

He, however, noted that this noble responsibility was currently not being fulfilled by the government.

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 director-general 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.

He, therefore, appealed to Governor Babajide Sanwo-Olu to intervene in the matter to save businesses in Lagos from further woes.

Recall LASWARCO on December 24 sealed three companies for extracting large quantities of groundwater for commercial purposes without proper authorisation and compliance with regulations.