The Nigeria Employers’ Consultative Association (NECA) has expressed concerns over the closure of three companies by the Lagos state government.
The state’s State Water Regulatory Commission (LASWARCO), on Tuesday, announced the clampdown of the facilities of three major companies which include Nigerian Bottling Company (producers of Coca-Cola), FrieslandCampina (makers of Peak Milk), and Guinness Nigeria Plc over violation of Environmental Management Protection Law, EMPL, 2017, by extracting large quantities of groundwater without proper authorisation.
Reacting to the state’s government action, the Director-General, NECA, Mr. Wale-Smatt Oyerinde ,described the closure as economic sabotage, urging the commission to support struggling businesses and shun peddling misinformation and media onslaught.
“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 global restructuring with Nigeria and Lagos especially being one of the hardest hit nations and states in divestments and job losses, is worrisome,” he said.
He stressed that one of the primary responsibilities of the government is to provide potable water for citizens, saying it is harsh for the same government to stifle the private sector by imposing punitive levies on businesses.
“May we reiterate that it is the responsibility of the government to provide water for its citizens and businesses. If this noble responsibility is currently not being fulfilled for whatever reason by the government, 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,” he said.
Director of technical services at LASWARCO, Olowu Babatunde, had during an enforcement on Tuesday in Lagos said LASWARCO had engaged with the companies for over seven years to encourage compliance, but efforts have been unsuccessful.
“Abstractors are individuals or entities that extract large quantities of groundwater for commercial purposes.
“So, these companies that we have sealed, basically three of them – Coca-Cola, FreislandCampina and Guinness, abstract water in large quantities,” said Mr Babatunde.
The Commissioner for Environment and Water Resources, Tokunbo Wahab, had earlier noted that the Environmental Management Protection Law 2017 empowered LASWARCO to regulate groundwater activities and impose penalties for unauthorised abstraction. He said unregulated groundwater extraction could lead to serious environmental consequences, including land subsidence and groundwater contamination.
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