By Adedapo Adesanya

The Manufacturers Association of Nigeria (MAN) has condemned the sealing of a few manufacturing companies by the Lagos State government.

In a statement signed by its Director General, Mr Segun Ajayi-Kadir, the group said it was appalled by the action, adding that it was already in talks with relevant agencies in the state over the issue.

Earlier this week, the Lagos State Water Regulatory Commission (LASWARCO) sealed the factories of the Nigerian Bottling Company (producers of Coca-Cola), FrieslandCampina (makers of Peak Milk), and Guinness Nigeria Plc. for violating water abstraction regulations in their operation.

The commission’s Director of Technical Services, Mr Olowu Babatunde, said on Tuesday that the companies were extracting large quantities of groundwater without proper authorisation.

In his statement released on Friday, MAN’s DG said the government’s decision was ill-timed and in bad faith as talks were ongoing about the issue among the affected parties, noting that efforts to reach the authorities after the shutdown were futile.

“The Manufacturers Association of Nigeria (MAN) is constrained to convey this open message to the Governor of Lagos State, as all attempts at approaching the relevant heads of agencies and ministry have failed. MAN is appalled by the inauspicious act of the Lagos State Water Regulatory Commission (LASWARCO) in sealing factories over their purported refusal to pay the astronomical and unjustifiable water abstraction fees imposed by the Commission,” he stated.

Mr Ajayi-Kadir added, “This action is ill-timed and quite unfortunate, as the Commission and MAN had engaged in meaningful dialogue and reached some agreements over the lingering issue about three months ago.

“This was expected to culminate in an MoU to commence in January 2025.

“Only three weeks ago, another round of discussions took place between LASWARCO and representatives of MAN, including affected member companies, which led to ongoing discussions in the companies as to the most viable option for addressing the alleged outstanding payments from earlier contested fees.

“It is while these discussions were going on and during the Yuletide that the Commission decided to cause this major and unwise shutdown of the companies.”

MAN accused the Lagos state government of being tyrannical in its regulation and imposing exorbitant fees on manufacturers at a time when the industry is facing a downturn, saying the industry spends a lot on water for production as the government fails to supply water.

“It is important to properly situate this inappropriate action within the context of the prevailing inclement operating environment in general and the downturn in the manufacturing sector in particular.

“A situation where industries are burdened with payments in excess of N100 million for generating water for production purposes, in the face of the government’s failure to supply the same, is unfair.

“The exorbitant fees and the untoward means of extracting payment exemplifies the negative impact of the tyranny of regulation on private business,” the statement read further.

Mr Ajayi-Kadir lamented that manufacturers are enduring a harsh economic climate as the volume of unsold inventories keeps rising. He expressed concerns over the possibility of other states taking similar enforcement action as the Lagos state government.

“To date, manufacturers across the country are saddled with more than N1.2 billion of unsold inventory, borrowing at more than 30 per cent and struggling under a debilitating 250 per cent increase in the cost of power.

“Numerous taxes, fees, and levies by the three tiers of government and non-state actors in some cases, numbering between 60 to 120 confront each manufacturer, not to mention the disruption of production activities due to insecurity and high cost of logistics. There are more! So, to add this oppressive water abstraction fee in Lagos state that may potentially be adopted by other States presents an ominous and rancorous future for manufacturers in particular and private businesses in general,” he added.

He pleaded with the Governor of Lagos, Mr Babajide Sanwo-Olu, to direct  LASWARCO to reopen the sealed facilities while MAN and the agency resume discussions.

“This will pave the way for a logical and passable conclusion of the ongoing conversations on how to permanently resolve the matter of outstanding fees, as well as conclude the impending MoU between the Water Commission and the Organised Private Sector,” he said.

By Adedapo Adesanya

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged Nigerians to avoid panic-buying of premium motor spirit (PMS), otherwise known as petrol, during this festive period, assuring them of enough supply to go around.

The Publicity Secretary of IPMAN, Mr Ukadike Chinedu, while speaking in Abuja, commended the Dangote Petroleum Refinery for reducing the price of its product to N899.50 per litre, noting that the gesture will help to reduce transport costs for Nigerians ahead of yuletide holidays.

”You see, that is the beauty of deregulation; prices are determined by market forces and with the Dangote and federal government refineries by the corner, this will bring competitive prices,” Mr Chinedu said.

He urged all IPMAN members to adjust their pump to the new price to attract more customers.

“We have started ordering the new price, and some of our members have already started adjusting their pumps lower for faster sales. If your price is higher, nobody will buy from you.

“You will even find out now that those queues that you normally see in NNPC filling stations have all reduced, because most marketers are almost selling the same thing with them,” he said.

In a related development, IPMAN, at the weekend announced that beginning from Monday (December 23) its members will begin to sell petrol at at N935 per litre.

Mr Maigandi Garima, IPMAN’s National President, who disclosed this, stated that the reduced price regime is a result of a new arrangement with the Dangote Refinery, which will make it possible for independent marketers to sell at N935 per litre.

Business Post reports that IPMAN stations were, however, still selling the product at above N1,00 per litre as of Tuesday afternoon.

The Nigerian National Petroleum Company (NNPC) Limited also reduced the prices of petrol – by N20 per litre at its fuel stations in the Federal Capital Territory, Abuja.

The product is now selling for N965 per litre at the state oil company’s stations across the city.

As for NNPC, it is not clear whether it will extend its new N965 per litre price to other parts of the country.

By Modupe Gbadeyanka

President Bola Tinubu has been urged to urgently look into the escalating hunger and suffering faced by millions of Nigerians due to the policies of his administration.

This call was made by the Conference of Nigeria Political Parties (CNPP) in a statement signed by its Deputy National Publicity Secretary, Mr James Ezema.

The group was reacting to the recent tragic incidents, including stampedes in Ibadan Oyo State, Anambra State and Abuja, resulting in loss of lives as citizens scrambled for palliatives.

“The current economic policies have had devastating short-term impacts, leading to increased hardship for the populace,” a part of the statement said.

“The federal and state governments must prioritize the survival of its citizens before they can even begin to enjoy the so-called long-term benefits of ongoing reforms in the country,” the organisation stated further.

The CNPP said it firmly believes that the “reality is that Nigerians must be kept alive first; only then can they contribute to the nation’s economic growth and development.”

To address this, the CNPP called on President Tinubu to immediately reconsider the pricing of petroleum products, particularly in light of the recent completion of the Port Harcourt Refinery’s rehabilitation and the ongoing loading of petroleum products at the refurbished refinery.

“We equally call on the President to urgently consider releasing crude oil at a highly subsidized rate to local refineries, including Dangote Refinery for domestic consumption,” it added.

“This will lead to a reduction in fuel prices, which is essential to alleviate the burden of transportation costs and the expenses associated with fueling power generators for manufacturing companies,” it added.

The CNPP warned that if these issues are not addressed, the increasing cost of production will continue to complicate Nigeria’s economic woes, rendering both interim and long-term gains from the ongoing economic reforms unattainable.

According to the group, the current trajectory is unsustainable and threatens to push more Nigerians into poverty and despair.

“No responsible leader can stand by and watch avoidable deaths occur among our citizens — individuals who should be contributing to the economic growth of our nation but are instead succumbing to the negative impacts of government policies and poor governance,” it stated.

It called for an immediate and comprehensive response from the Tinubu administration and state governments to address these pressing issues, urging the government “at all levels to implement policies that prioritize the welfare of the people,” ensuring that “no Nigerian is left behind in the quest for economic recovery and stability.”

The group implored Mr Tinubu to take decisive action to alleviate the suffering of Nigerians and to create an environment where citizens can thrive, saying, “The time for rhetoric is over; it is time for tangible action that reflects the needs and realities of the Nigerian people.”