The Manufacturers Association of Nigeria,MAN, has strongly criticized the Lagos State Water Regulatory Commission , LASWARCO, for sealing the facilities of several companies in Lagos, citing non-compliance with water abstraction regulations.

In a letter addressed to Governor Babajide Sanwo-Olu on Friday, MAN’s Director General, Segun Ajayi-Kadir, urged the governor to intervene in the matter, as previous efforts to resolve the issue through the relevant agencies had proven unsuccessful.

The companies affected include Nigerian Bottling Company (producers of Coca-Cola), FrieslandCampina (makers of Peak Milk), and Guinness Nigeria Plc. LASWARCO had sealed these facilities for extracting large quantities of groundwater without the necessary authorization.

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Ajayi-Kadir expressed the association’s dismay at what he described as an “ill-timed and unfortunate” move, especially given that MAN and LASWARCO had recently engaged in constructive dialogue. Both parties had reached a tentative agreement on the issue, with plans to formalize a Memorandum of Understanding , MoU, by January 2025.

He further criticized the exorbitant water abstraction fees imposed on the companies, which he described as “astronomical and unjustifiable.” As stated by Ajayi-Kadir, this regulatory action was particularly troubling given the broader economic difficulties faced by the manufacturing sector.

“Industries already burdened by excessive costs, such as the payment of over N100 million for sourcing their own water due to the government’s failure to provide adequate supply, should not be further penalized,” he said. “This represents the negative consequences of excessive regulation on private business and undermines the spirit of cooperation needed to improve the business environment.”

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