Water Levy Dispute: NECA Urges Sanwo-Olu to Resolve LASWARCO Levy Dispute with Manufacturers

The Nigeria Employers’ Consultative Association (NECA) has urged Governor Babajide Sanwo-Olu of Lagos State to intervene in the face-off between some manufacturing companies and the Lagos State Water Regulatory Commission (LASWARCO) over nonpayment of water abstraction levies.

NECA alleged the face-off has also led to purported closure of the factories of some major manufacturing companies in Lagos by LASWARCO over nonpayment of water abstraction levies.

It also urged the commission to toe the path of support for struggling businesses and stop the ongoing misinformation and media onslaught tantamount to economic sabotage.

Speaking in a public statement that urged LASWARCO to stop the unhelpful business disruption, the Director General of NECA, Mr. Wale-Smatt Oyerinde, “appealed to the business-friendly executive governor of Lagos State, to kindly intervene in this matter to save businesses in Lagos from further woes.”

Oyerinde stated 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.

He said: “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.”

According to him, it is worrisome that all these are taking place at a time when many multinationals are either exiting the country or carrying out global restructuring with Nigeria and Lagos especially being one of the hardest hit nations/states in divestments and job losses.

He said: “It is no gainsaying that businesses have faced probably the harshest economic situation in recent times, with many declaring humongous losses.

“It is, thus, expected that the commission will be innovative enough to come up with legitimate ways to generate revenue without adding to the woes of businesses by demanding unjustifiable multimillion amounts as water abstraction levies from businesses that already pay many other forms of taxes for the same activities, they use the water for.”

Speaking further on the role of government and the private sectors, Oyerinde reiterated that it is the responsibility of the government to provide water for its citizens and businesses.

He argued that “if this noble responsibility is currently not being fulfilled for whatever reason by the government, 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”.

Oyerinde noted that “this action of the commission is more worrisome because there is an ongoing engagement with a section of the Organised Private Sector (OPS) to amicably resolve the issues.

He said that while some companies had been compelled to pay “in the hope of avoiding disruption to their operations, we counsel against the unhelpful tactics being deployed by the commission.

His words: “It should be noted that organised businesses are not against responsible regulation, however, we will embark on all legal and legitimate means to resist any form of high-handedness that does 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, which are directly against the efforts of the federal government to attract investment, promote job creation and facilitate responsible regulation.”

Dike Onwuamaeze

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