The Manufacturers Association of Nigeria (MAN) has issued an open message to Lagos State Governor, Babajide Sanwo-Olu, expressing its dismay over the recent sealing of factories in Lagos State by the Lagos State Water Regulatory Commission (LASWARCO).

The Commission’s action was taken due to the purported refusal of the factories to pay the imposed water abstraction fees.

According to MAN, the Commission’s action is ill-timed and unfortunate, as it had engaged in meaningful dialogue with the Commission and reached some agreements on the issue about three months ago.

The agreements were expected to culminate in a Memorandum of Understanding (MoU) to commence in January 2025.

However, despite the ongoing discussions, the Commission decided to seal the factories during the Yuletide season.

MAN has described the situation as unfair, citing the exorbitant fees imposed on industries for generating water for production purposes, despite the government’s failure to supply water.

The association has also highlighted the negative impact of the “tyranny of regulation” on private businesses, citing the numerous taxes, fees, and levies imposed by the three tiers of government and non-state actors.

The association has appealed to Governor Sanwo-Olu to intervene in the matter, ordering the immediate reopening of the closed factories.

This, according to MAN, will pave the way for a logical conclusion to the ongoing conversations on resolving the issue of outstanding fees and finalizing the MoU between the Water Commission and the Organized Private Sector.

MAN has emphasized the need for a business-friendly regulatory environment, warning that the possible loss of jobs and socioeconomic implications, as well as the negative signal to the investing public, should serve as a deterrent.

The Lagos State Government has not yet responded to MAN’s appeal. However, Governor Sanwo-Olu has been a strong advocate for the development of the manufacturing sector in Lagos State.

In a recent statement, the governor called on manufacturers to adopt new technologies and innovative practices to optimize production processes.

As the situation unfolds, MAN remains hopeful that the government will intervene to resolve the issue and promote a business-friendly environment in the state.