The Manufacturers Association of Nigeria (MAN) has urged the Lagos State Governor, Mr. Babajide Sanwoolu, to call for the immediate reopening of Coca Cola, Guinness and Peak Milk factories, closed the Lagos State Water Regulatory Commission (LASWARCO), over purported refusal to pay water abstraction fees imposed by the Commission.

 

 

The appeal was made by the association,  on Friday, in an open letter, addressed to the state governor, and  signed by its Director General,  Mr. Segun Ajayi-Kadir.

 

 

MAN argued that the governor’s intervention had become imperative; since efforts, by the association, at meeting  the relevant agencies in charge of the issue had proved abortive.

 

 

The manufacturers’ body described LASWARCO’s action  as ill-timed and unfortunate,  since it had earlier engaged the  Commission in meaningful dialogue, and reached some agreements over the lingering issue.

 

 

The agreements, it added,  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,” the group stated.

 

 

The association described as unfair, the decision of the commission to burden industries  with payments in excess of N100million for generating water for production purpose, in the face of government’s failure to supply same.

 

 

It argued that the exorbitant fees, and the untoward means of extracting such payment, exemplify the negative impact of tyranny of regulation on private business; since  the nation’s manufacturers,  it noted, are still saddled with more that N1.2billion of unsold inventory, borrowing at more than 30%, and struggling under a debilitating 250% 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.

 

 

“So to add this oppressive water abstraction fee in Lagos state that may potentially be adopted by other states, presents an ominous and rancorous future for manufacturers in particular and private businesses in general,” it added.

 

 

MAN, therefore, expressed the optimism that the governor’s intervention would go a long way in paving the 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.