The Nigeria Employers’ Consultative Association (NECA) has called for an immediate halt to the growing harassment of businesses in Lagos over water abstraction levies, urging the Lagos State Water Regulatory Commission (LASWARCO) to support struggling companies instead of adding to their burdens. This appeal follows reports that several factories in Lagos, including major manufacturing giants, have faced the closure of their premises due to allegations of non-compliance with the controversial water levies.
NECA’s Director-General, Mr. Adewale Oyerinde, expressed deep concern in a statement on Thursday, condemning the spread of misinformation surrounding these allegations. According to Oyerinde, such reports are not only misleading but also pose a serious risk to the already fragile business environment in Lagos. The claims that factories have been sealed by LASWARCO could have damaging long-term effects on investor confidence, job security, and the reputation of Lagos as a business hub.
The timing of these reports is particularly troubling, as the country is already facing significant economic challenges. Multinational companies are reducing their operations or pulling out altogether due to restructuring, and Nigeria, with Lagos at its heart, has been hit hard by the consequences of these corporate exits. Oyerinde pointed out that the imposition of multimillion-naira water abstraction levies on businesses is an additional blow to companies that are already dealing with substantial losses and a harsh economic climate.
He highlighted that while businesses are ready to contribute to the economy, the government must meet its own basic responsibilities, particularly in providing adequate water for citizens and businesses. The government cannot justify penalizing companies for providing water for their own operations when it has failed to ensure a reliable public water supply.
Oyerinde stressed that NECA was not opposed to responsible regulation but emphasized that the current approach, which involves punitive measures without consideration for the broader economic context, is both insensitive and counterproductive. The association vowed to resist any high-handed regulatory actions that lack empathy for businesses struggling to survive.
Furthermore, Oyerinde urged the Lagos State government, led by Governor Babajide Sanwo Olu, to intervene in the matter to prevent further damage to the city’s business climate. As it stands, the actions of LASWARCO could send the wrong message to investors, discourage job creation, and negatively impact the growth of local industries.
The issue came to a head on December 24, 2024, when LASWARCO sealed three major factories, including Nigerian Bottling Company, FrieslandCampina, and Guinness Nigeria Plc, for allegedly extracting large quantities of groundwater without the proper authorization. The companies are said to have failed to comply with the required regulations regarding water extraction.
As tensions continue to rise, all eyes are now on the Lagos State government to address these concerns and ensure that businesses in the region are not unfairly targeted while also maintaining the integrity of the regulatory process.