NECA warns closure of NBC, 2 others will scare away investors

The Nigeria Employers’ Consultative Association (NECA) has warned governments at all levels that the closure of factories and other business outlets would scare away investors from the country.

The organisation was reacting to the closure of Nigerian Bottling Company, producers of Coca-Cola, FrieslandCampina makers of Peak Milk, and Guinness Nigeria Plc, for extracting large quantities of groundwater without approval by the Lagos State Water Regulatory Commission (LASWARCO).

In a statement issued on Thursday, NECA’s Director-General, Mr. Adewale-Smatt Oyerinde, warned that the development would send the wrong message on the already harsh business environment in the country.

He appealed to the Lagos State Governor, Babajide Sanwo-Olu, to intervene in the matter to save businesses in Lagos from further woes.

The statement read: “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.

READ ALSO: Lagos govt seals NBC, FrieslandCampina, Guinness over extraction of groundwater

“All these at a time when many multinationals are either exiting the country or carrying out a global restructuring with Nigeria and Lagos especially being one of the hardest hit nations/states in divestments and job losses is worrisome.”

Oyerinde said businesses had faced probably the harshest economic situation in recent times with many declaring huge losses.

He charged LASWARCO to come up with legitimate ways to generate revenue without adding to the woes of businesses.

The NECA boss described the demand for huge sums of money as water abstraction levies from businesses that had already paid many other forms of taxes for the same activities as unreasonable.

He noted that the government was not currently fulfilling this noble responsibility.

By: Babajide Okeowo

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