The Manufacturers Association of Nigeria (MAN) has condemned the Lagos State Water Regulatory Commission’s (LASWARCO) decision to seal several factories in Lagos State over disputed water abstraction fees. MAN described the closures as “ill-timed” and harmful to the manufacturing sector, noting they occurred despite ongoing negotiations.

According to MAN, the commission’s actions are unfair, given the government’s failure to supply water for production purposes.

The association argued that the exorbitant fees and aggressive means of extracting payment exemplify the negative impact of overregulation on private businesses.

MAN Director-General Segun Ajayi-Kadir emphasized that manufacturers are already struggling with numerous taxes, fees, and levies, as well as disruptions due to insecurity and high logistics costs.

He appealed to Governor Babajide Sanwo-Olu to intervene and reopen the sealed factories, fostering a more business-friendly environment.

The association warned that the closures could lead to job losses, socioeconomic implications, and a negative signal to investors.

MAN urged the governor to take immediate action to protect the state’s economy and prevent further deterioration of the business atmosphere.