MAN
MAN condemns Lagos for sealing Coca-Cola, Guinness, Peak
The Manufacturers Association of Nigeria (MAN) has criticized the Lagos State Government for sealing the facilities of several manufacturing companies, describing the action as “unwise, unwarranted, and ill-timed.”
In a statement signed by its Director-General, Segun Ajayi-Kadir, MAN expressed dismay over the shutdown of industries such as the Nigerian Bottling Company (Coca-Cola), FrieslandCampina (makers of Peak Milk), and Guinness Nigeria Plc by the Lagos State Water Regulatory Commission (LASWARCO). The Commission accused these companies of extracting large quantities of groundwater without proper authorization.
Ajayi-Kadir stated that the closure disregarded ongoing negotiations and agreements between MAN and LASWARCO over contentious water abstraction fees. He emphasized that the industry, already burdened by economic challenges and rising production costs, cannot afford the “exorbitant” fees demanded by LASWARCO, which amount to over N100 million in some cases.
“It is unfair to burden industries with such fees when the government itself fails to supply adequate water. This represents the tyranny of regulation on private businesses,” Ajayi-Kadir said.
He also lamented the downturn in the manufacturing sector, citing rising unsold inventories, exorbitant borrowing costs, and escalating energy prices as key challenges. The DG warned that other states could adopt similar enforcement measures, further harming the sector.
The Nigeria Employers’ Consultative Association (NECA) also criticized the closures, warning that such actions could deter investors.
MAN has called on Governor Babajide Sanwo-Olu to intervene and reopen the sealed facilities while discussions resume to resolve the matter amicably.