Lagos risks driving investors away over factory sealing, NECA alerts

NAIRAMETRICS

Nigeria Employers’ Consultative Association (NECA) has warned that the recent actions of the Lagos State Water Regulatory Commission (LASWARCO) sealing some factories has the potential to scare investors away from the state.

NECA’s Director-General, Mr Adewale-Smatt Oyerinde, issued the warning in a statement on Thursday.

Nairametrics earlier reported that LASWARCO had sealed the facilities of three major companies – Nigerian Bottling Company (producers of Coca-Cola), FrieslandCampina (makers of Peak Milk), and Guinness Nigeria Plc – for extracting large quantities of groundwater without proper authorisation.

Oyerinde said the reported sealing of the premises of the businesses on the allegation of non-compliance with water abstraction regulations is likely to send the wrong message on the already harsh business environment in the country.

“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.

“All these at a time when many multinationals are either exiting the country or carrying out a global restructuring with Nigeria and Lagos especially being one of the hardest hit nations/states in divestments and job losses, is worrisome,” he said.

Oyerinde described the demand for unjustifiable multimillion sums as water abstraction levies from businesses that had already paid many other forms of taxes for the same activities they use the water for as unreasonable…