MAN calls for reopening of sealed Lagos factories

The Producers Affiliation of Nigeria has referred to as on Lagos State Governor Babajide Sanwo-Olu to reopen factories sealed by the Lagos State Water Regulatory Fee over alleged non-payment of water abstraction charges.

In an announcement on Friday, MAN described the closures as “unwarranted and ill-timed,” accusing LASWARCO of disregarding ongoing discussions aimed toward resolving the disputed charges.

In keeping with the affiliation, it resorted to writing an open letter to Sanwo-Olu, “As all makes an attempt at approaching the related heads of businesses and ministry have failed.”

MAN lamented the choice to seal the factories through the Yuletide season, calling it “unwise” and detrimental to the state’s financial system and the manufacturing sector.

MAN Director-Basic, Segun Ajayi-Kadir, stated, “MAN is appalled by the inauspicious act of LASWARCO in sealing factories over their purported refusal to pay the astronomical and unjustifiable water abstraction charges imposed by the Fee.

“This motion is ill-timed and fairly unlucky, because the Fee and MAN had engaged in significant dialogue and reached some agreements over the lingering challenge about three months in the past.”

Ajayi-Kadir revealed that MAN had engaged in negotiations with LASWARCO, which led to agreements that had been imagined to culminate in a Memorandum of Understanding in January 2025.

“Solely three weeks in the past, one other spherical of discussions passed off between LASWARCO and representatives of MAN together with affected member corporations, which led to ongoing discussions within the corporations as to probably the most viable choice for addressing the alleged excellent funds from earlier contested charges.

“It’s whereas these discussions had been happening and through the Yuletide that the Fee determined to trigger this main and unwise shutdown of the businesses,” he famous.

Additional, the affiliation decried the extreme prices producers face in Lagos, citing water charges exceeding N100m, borrowing charges of over 30 per cent, and a 250 per cent hike in energy prices.

Ajayi-Kaddir defined, “The exorbitant charges and the untoward technique of extracting fee exemplify the unfavorable affect of the tyranny of regulation on non-public enterprise. Up to now, producers throughout the nation are saddled with greater than N1.2bn of unsold stock, borrowing at greater than 30 per cent and struggling below a debilitating 250 per cent enhance in the price of energy.

“Quite a few taxes, charges and levies by the three tiers of presidency and non-state actors in some circumstances, numbering between 60 to 120 confront every producer, to not point out the disruption of manufacturing actions attributable to insecurity and excessive value of logistics.”

MAN warned that the closures may result in job losses and additional pressure an already risky enterprise surroundings.

It argued that such regulatory actions ship unfavorable indicators to traders and undermine non-public sector progress.

Ajayi-Kadir urged Sanwo-Olu to intervene and reopen the affected factories to facilitate a decision of the problem, remarking “This can pave the best way for a logical and satisfactory conclusion of the continuing conversations.”

He added that the non-public sector is awaiting the finalisation of the MoU textual content from LASWARCO.

Ajayi-Kadir emphasised the broader implications of the dispute, stressing “The doable lack of jobs and its attendant socioeconomic implications… ought to function a deterrent and encourage a business-friendly regulatory surroundings.”