MAN Urges Lagos State Governor to Reverse Unjust Factory Sealing, Calls for Swift Resolution on Water Fees

In an open message to Lagos State Governor Mr. Jide Sanwo-Olu, the Manufacturers Association of Nigeria (MAN), led by Director General Segun Ajayi-Kadir, has condemned the recent sealing of factories by the Lagos State Water Regulatory Commission (LASWARCO) over unpaid water abstraction fees. This act, described as “ill-timed” and “unwarranted,” follows months of constructive dialogue between MAN and LASWARCO aimed at resolving the issue. The two parties had agreed to develop a Memorandum of Understanding (MoU) set to begin in January 2025, with recent talks showing progress in addressing contested fees. However, despite these discussions, LASWARCO chose the festive season to enact factory closures, exacerbating the already challenging business environment in Lagos.

Ajayi-Kadir emphasized that manufacturers are already struggling with severe operational challenges, including exorbitant water fees, skyrocketing energy costs, and overwhelming taxes. With more than N1.2 billion worth of unsold inventory and borrowing rates exceeding 30%, the sector faces immense pressure. The added burden of unjust water fees threatens to create a broader negative ripple effect across the manufacturing landscape, with the risk of other states adopting similar policies. MAN’s message to the Governor stressed the importance of an immediate resolution, calling for the reopening of the sealed factories and a conclusion to the ongoing discussions on outstanding fees. The association also highlighted the potential loss of jobs and economic instability if such regulatory actions continue.

As the private sector eagerly awaits the finalization of the MoU, MAN urges the Lagos State Government to demonstrate a commitment to fostering a business-friendly regulatory environment, signaling to both local and international investors that Lagos remains a hub for sustainable economic growth.