The organised private sector (OPS) has agreed to walk the same path with the Lagos State government on issues bordering on the regulation of water extraction, licensing and permits following the resolution of their long-drawn differences.
The resolution of the over three-year disagreement came after both parties agreed to some concessions. For instance, the state government, BusinessDay gathered, agreed to waive five-year arrears and 75 percent cut on the rates charged private businesses for drilling boreholes in their premises.
The OPS had opposed the aspect of the Lagos State Environmental Management and Protection Law (2017), which empowers the Lagos State Water Regulatory Commission (LSWRC) to impose ‘high charges’ on private businesses for drilling boreholes in their premises. The LSWRC is charged with regulating, controlling, and monitoring abstraction, production, distribution, consumption, supply and use of water, quantity as well as the quality of service in Nigeria’s biggest economy state.
The Manufacturing Association of Nigeria (MAN), Nigeria Employers’ Consultative Association (NECA), Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) had contended ‘high charges’ on companies for sinking boreholes, saying it was akin to overkill given that companies already face multiple taxation in Lagos. MAN in 2017 raised the concern that the LSWRC slammed member companies with as high as N800,000 annual borehole charges.
However, after series of protracted meetings and concessions, the group has resolved to collaborate with the state government.
“Yes we have resolved the differences. The government has agreed to waived five-year areas for our members and slash the rates by 75 percent,” Timothy Olawale, the director-general of NECA told BusinessDay.
Funke Adepoju, the executive secretary of the LSWRC, in a statement, on Wednesday, said with the development, the commission was strategically positioned to enforce the provisions of the law towards ensuring the safety of residents in terms of water consumption and also protect the environment.
Adepoju acknowledge the role played by Governor Babajide Sanwo-Olu towards the amicable resolution of the impasse, and also praised the leadership of NECA, MAN, and NACCIMA.
“Governor Sanwo-Olu recognises the huge contribution of the OPS to the economy of Lagos and thus to encourage businesses, he has granted concessions as requested by the OPS on charges relating to water abstraction, licensing, and permits.
“This is a clear demonstration of the commitment of Mr. Governor to protect businesses and encourage them to thrive, especially with post- COVID-19 and the attendant effect on the economy.
“Big credit also goes to MAN, NECA, NACCIMA, and other associations under the umbrella of the OPS for agreeing to support the state government’s quest to sanitise the water industry in the state and facilitate the improvement of integrated water resource management.”
She recalled the pledge by the state commissioner for the environment and water resources, Tunji Bello at the 2020 Lagos Water Conference where he alluded to the enthronement of the regulatory regime in the water sector as one of the environmental regeneration programmes of the current administration designed to create a safe, healthy, and conducive environment for residents.
Going forward, Adepoju said all issues around water abstraction, collection of licenses and permits for all stakeholders in the water sector, especially those using water for in-process, those abstracting more than 10,000 litres per day, housing estates/facilities with more than tenement of 50, bottled and sachet water producers, commercial premises, among others, have now been amicably resolved.
She said in view of the need to safeguard the health of residents and protect the environment, the monitoring, and enforcement unit of the commission would intensify its activities in order to ensure that operators comply with good manufacturing practices (GMP) and producers engage in wholesome practices, while at the same time ensuring financial viability of the sector.
