As part of effort to mitigate high cost of doing business in Lagos State, Manufacturers Association of Nigeria (MAN) has called for a review of water tariff in the state.
President of the Association, Dr Frank Jacobs, who led members of the Association to a courtesy visit to the State House, Ikeja, on Friday, frowned at the licensing fee charged by the Water Regulatory Commission .
He described the high cost as a burden on industries, who are already groaning under the pressure of inclement operating environment and high cost of doing business in the state.
According to him, the review is necessary in order to encourage companies to comply with the law as well as to avoid default in payment or threat of litigation.
Jacobs informed that companies were forced to provide their own water because of the inadequacy of public water supply. He said, “We are constrained to draw your attention to recent activities of the Lagos State Water Regulatory Commission, on which we have received numerous complaints and petitions from our members. It is pertinent to draw your attention to the fact that there is no country in Africa and for that matter any state in Nigeria that is charging licensing fee for borehole or any charge for water abstraction.
“The Association believes that the State has the responsibility to provide water for which the citizens would pay. “ Companies are forced to provide their own water because of the inadequacy of public water supply.
“Asking companies to pay for this would appear that we are being penalized for making up for the inadequacy of Government to provide this vital utility.
“We are requesting that the law be reviewed in a way that companies wishing to sink bore holes should pay a moderate permit while companies whose lines of business involve sale of water or water based products should pay a moderate one-off licensing fee.
“The commission may be required to go into further negotiation with the private sector on how to achieve a downward review in this regard.
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