Segun Ajayi-Kadir, the director-general (DG) of the Manufacturers Association of Nigeria (MAN), has condemned Lagos state for closing factories belonging to Coca-Cola Hellenic Bottling Company, FrieslandCampina WAMCO, and Guinness Nigeria.
On December 24, the Lagos State Water Regulatory Commission (LASWARCO) sealed the factories for extracting groundwater for commercial purposes without proper authorisation.
The commission said it had been engaging with the three companies for over seven years, but they had either partially complied or failed to comply with regulations, prompting enforcement action.
In an open letter on Friday to Babajide Sanwo-Olu, governor of Lagos state, Ajayi-Kadir described the act as ill-timed, given the ongoing discussions between the commission and the association.
“The Manufacturers Association of Nigeria (MAN) is constrained to convey this open message to the Governor of Lagos State, as all attempts at approaching the relevant heads of agencies and ministry has failed,” the DG said.
“MAN is appalled by the inauspicious act of the Lagos State Water Regulatory Commission (LASWARCO) in sealing factories over their purported refusal to pay the astronomical and unjustifiable water abstraction fees imposed by the Commission.
“This action is ill-timed and quite unfortunate, as the Commission and MAN had engaged in meaningful dialogue and reached some agreements over the lingering issue about three months ago. This 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 this discussions were going on and during the Yuletide that the Commission decided to cause this major and unwise shut down of the companies.”
Ajayi-Kadir highlighted the harsh economic climate, noting that industries are already burdened with significant challenges, including over N1.2 billion in unsold inventory, borrowing costs exceeding 30 percent, and a 250 percent rise in power costs.
He said manufacturers face multiple taxes and fees, adding that the high cost of logistics and insecurity further disrupt production activities.
