The Nigeria Employers’ Consultative Association has urged the Lagos State Water Regulatory Commission to support struggling businesses and cease actions that could harm the state’s business environment.
The NECA’s Director-General, Adewale Oyerinde, expressed concern over recent reports alleging the closure of factories belonging to major manufacturers in Lagos due to claims of unpaid water abstraction levies.
“The news of some businesses being sealed off for alleged non-compliance with water abstraction regulations is both misleading and damaging,” Oyerinde said. “Such misinformation could worsen an already challenging business climate, deter investors, and undermine employees’ job security.”
The NECA director-general emphasized that Lagos State must avoid actions that could portray it as hostile to legitimate businesses.
He highlighted the economic pressures faced by businesses, noting that several multinationals have been restructuring globally, leading to job losses and divestments that have significantly impacted Nigeria, particularly Lagos.
“We are navigating one of the toughest economic periods in recent history, with many businesses recording substantial losses. It is imperative that regulatory bodies explore innovative and supportive ways to generate revenue without adding to the struggles of businesses,” he added.
Oyerinde described the multimillion-naira water levies as unreasonable, pointing out that businesses already shoulder multiple taxes for similar activities. “The government’s primary responsibility is to provide water for its citizens and businesses. Unfortunately, this obligation is not being met adequately,” he said.
“It is both insensitive and punitive for businesses that have to invest heavily in self-sustaining water systems to then face additional levies from the same government failing to deliver adequate water supply.”
While reaffirming the commitment of organized businesses to responsible regulation, Oyerinde criticized what he called the high-handedness of some regulatory agencies. He urged these bodies to adopt more constructive and civil methods of revenue collection, warning that NECA would resist unfair practices through all legitimate means.
“The disruptive tactics of recent times directly undermine the Federal Government’s efforts to attract investment, promote job creation, and ensure fair regulation,” he stated.
Oyerinde called on Lagos State Governor Babajide Sanwo-Olu to intervene, stressing the need for immediate action to protect businesses in the state.
Meanwhile, the News Agency of Nigeria reported that on December 24, LASWARCO shut down three major companies—Nigerian Bottling Company (makers of Coca-Cola), FrieslandCampina (producers of Peak Milk), and Guinness Nigeria Plc—for allegedly extracting large quantities of groundwater without proper authorization.
NECA urged LASWARCO to reconsider its approach, stating, “It is essential to balance revenue generation with empathy for struggling businesses.
