Nigeria Employers’ Consultative Association (NECA) has lamented demands on businesses operating in Lagos by Lagos State Water Regulatory Commission (LASWARCO) over self-generated water.

It also called on the state to support struggling businesses and halt the spread of misinformation and negative media campaigns.

NECA’s Director-General, Mr Adewale-Smatt Oyerinde, who made the call in a statement, yesterday, said misinformation was tantamount to economic sabotage.

The call followed the purported closure of factories of some major manufacturing companies in Lagos by LASWARCO on allegations of non-payment of water abstraction levies.

“The purported news of the sealing of the premises of some businesses on the allegation of non-compliance with water abstraction regulations is not only misleading, but also 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 states in divestments and job losses, is worrisome,” he said.

Oyerinde said businesses had faced probably the harshest economic situation in recent times, with many declaring humongous losses.

He said It was expected, therefore, that the commission would be innovative enough to come up with legitimate ways to generate revenue without adding to the woes of businesses.

Oyerinde described as unreasonable 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.

“May we reiterate that it is the responsibility of the government to provide water for its citizens and businesses,” he declared, lamenting that the responsibility was currently not being fulfilled by government.

According to him, it will be highly insensitive, harsh and punitive for the same government that has failed to adequately provide water to also impose punitive levies on businesses that are constrained to make investments in providing water to run their businesses.

The director-general emphasised that organised businesses were not against responsible regulation.

He, however, noted that the association would embark on all legal and legitimate means to resist any form of high-handedness that did not demonstrate empathy with the plight of struggling Nigerian businesses.

“In the quest for revenue generation, the commission and, indeed, all other regulatory agencies should adopt a more legitimate and civil approach, rather than the predominant disruptive pattern of recent times.

“Those patterns are directly against the efforts of the Federal Government to attract investment, promote job creation and facilitate responsible regulation,” Oyerinde said.

He appealed to Governor Babajide Sanwo-Olu to intervene in the matter to save businesses in Lagos from further woes.

The News Agency of Nigeria (NAN) reports that LASWARCO on December 24 sealed three companies for extracting large quantities of groundwater for commercial purposes without proper authorisation and compliance with regulations.

The three companies are Nigerian Bottling Company, Coca-Cola producers, FrieslandCampina, Peak Milk makers and Guinness Nigeria Plc. (The Guardian)