The Nigeria Employers’ Consultative Association (NECA) has expressed concern over the Lagos State Water Regulatory Commission’s (LASWARCO) imposition of levies on businesses that generate their own water supply. NECA argues that these charges are unreasonable, especially given the government’s failure to provide adequate water services.
NECA’s Director-General, Adewale Oyerinde, criticized the levies as punitive, noting that businesses are already burdened with multiple taxes and should not face additional charges for self-sustaining measures necessitated by inadequate public utilities. He emphasized that it is the government’s responsibility to provide essential services like water, and taxing companies for self-generated water is unjustifiable.
The controversy intensified when reports emerged that LASWARCO had sealed the premises of major companies, including Nigerian Bottling Company (Coca-Cola), FrieslandCampina (Peak Milk), and Guinness Nigeria Plc, for allegedly extracting large quantities of groundwater without proper authorization. Oyerinde warned that such actions could deter potential investors and harm the already fragile business environment in Lagos.
NECA has called on Lagos State Governor Babajide Sanwo-Olu to intervene and prevent further damage to businesses struggling in the challenging economic landscape. The association advocates for fair and civil approaches to revenue generation, urging regulatory bodies to avoid disruptive actions that could further harm businesses.
This situation highlights the ongoing challenges businesses face in Lagos due to inadequate public utilities and the additional financial burdens imposed by regulatory levies. NECA’s stance underscores the need for a more supportive environment that enables businesses to thrive without undue penalties for compensating for infrastructural deficiencies.
