By Grace Ademulegun
The shutting of some companies by the Lagos State Water Regulatory Commission (LASWARCO) over violation of underwater abstraction laws has begun to draw ire of concerned associations.
One of such associations, the Nigeria Employers’ Consultative Association (NECA), has warned LASWARCO that the decision to seal some factories could deter investors from the state.
In a statement released on Thursday, December 26, Adewale-Smatt Oyerinde, its Director-General, NECA argued that the closure of the companies’ locations on the grounds that they were not adhering to water abstraction rules is probably going to give the country’s already unforgiving business climate the wrong impression.
“The commission’s alleged remarks and actions have the detrimental potential to deter investors, exacerbate workers’ concerns about job security, and present Lagos State as inhospitable to respectable companies,” Oyerindr said in the statement.
“It is concerning that all of this is happening at a time when many multinational corporations are either leaving the country or undergoing a global restructuring, with Nigeria and Lagos in particular being among the hardest-hit countries/states in terms of divestitures and job losses,” he said.
Businesses have likely seen the most difficult economic climate in recent memory, according to Oyerinde, with many reporting enormous losses.
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Therefore, he said, it was expected that the commission would be creative enough to find legal ways to make money without making things worse for businesses.
The demand for unwarranted multimillion-dollar water abstraction fees from companies that have already paid numerous other types of taxes for the same uses of the water was deemed unjustified by Oyerinde.
“May we restate that the government bears the responsibility of supplying water to its citizens and businesses,” he remarked, pointing out that the administration was not carrying out this admirable duty at the moment.
He asserts that it would be extremely cruel, callous, and punitive for the government that has not provided enough water to impose punitive taxes on companies who are forced to invest in water supply in order to operate.
The director-general pointed out that prudent regulation was not opposed by organised enterprises, pointing out, however, that the group would use every legal and proper tool at its disposal to oppose any kind of haughtiness that failed to show compassion for the predicament of struggling Nigerian companies.
“Instead of the disruptive pattern that has been prevalent in recent years, the commission and all other regulatory bodies should take a more legitimate and polite approach in their pursuit of revenue production,” the NECA DG suggested.
“The Federal Government’s efforts to draw in investment, encourage job creation, and support responsible regulation are directly hampered by those patterns,” Oyerinde posited.
He, therefore, urged Governor Babajide Sanwo-Olu to step in and resolve the issue in order to spare Lagos’ businesses from more difficulties.
