Business

MAN, NECA Seeks Governor Sanwo-Olu’s Intervention over Factories Shutdown by LASWARCO

Published

12 months ago

December 27, 2024

201 Views

The Manufacturers Association of Nigeria (MAN) is imploring the Governor of Lagos State, Babajide Sanwo-Olu, to use his good office to order the immediate reopening of the closed factories of Nigerian Bottling Company, Friesland Campina, and Guinness Nigeria Plc by the Lagos State Water Regulatory Commission (LASWARCO).

This is even as the Nigeria Employers’ Consultative Association (NECA) condemned the regulatory actions by LASWARCO, warning that it is capable of scaring potential investors away from the state.

In an open message to Governor Sanwo-Olu today, Segun Ajayi-Kadir, the Director-General of MAN, said that the association 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.

He said: “MAN is appalled by the inauspicious act of sealing factories over their purported refusal to pay the astronomical and unjustifiable water abstraction fees imposed by the Commission.

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

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 above 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 exemplify the negative impact of the tyranny of regulation on private business.

To date, manufacturers across the country are saddled with more than N1.2 billion of unsold inventory, borrowing at more than 30 percent and struggling under a debilitating 250 percent 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 the 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.

MAN, therefore, implores the Governor of Lagos state to use his good office to order the immediate reopening of the closed factories.

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.

This is more so that the private sector is currently awaiting the finalization of the text of the MoU from LASWARCO. We are full of expectations that immediate action is taken in the interest of the state’s economy and to forestall a possible degeneration in the already tense business atmosphere.

The possible loss of jobs and its attendant socioeconomic implications, as well as the negative signal to the investing public, should serve as a deterrent and encourage a business-friendly regulatory environment.”

NECA’s Director-General, Mr Adewale-Smatt Oyerinde, appealed to Governor Babajide Sanwo-Olu to intervene in the matter to save businesses in Lagos from further woes.

The director-general emphasized that organized businesses are not against responsible regulations.

He, however, noted that in the quest for revenue generation, the LASWARCO and, indeed, all other regulatory agencies should adopt a more legitimate and civil approach rather than the predominant disruptive pattern of recent times.

“Those patterns are directly against the efforts of the Federal Government to attract investment, promote job creation, and facilitate responsible regulations,” Oyerinde said.

Oyerinde described the demand for unjustifiable multimillion sums as water abstraction levies from businesses that had already paid many other forms of taxes for the same activities they use the water for as unreasonable.

“May we reiterate that it is the responsibility of the government to provide water for its citizens and businesses,” he said.

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

It will be highly insensitive, harsh, and punitive for the same government that has failed to adequately provide water to also impose punitive levies on businesses that are constrained to make investments in providing water to run their businesses,” he said.

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Business

Heirs Energies Secures $750 Million Financing from Afreximbank for Expansion

Published

2 days ago

December 21, 2025

Charles Flames

60 Views

Heirs Energies Limited, Nigeria’s leading indigenous integrated energy company, has secured a $750 million financing facility from the African Export-Import Bank (Afreximbank).

The deal was finalized during a signing ceremony in Abuja on December 20, 2025, attended by Tony O. Elumelu, CFR, Chairman of Heirs Energies, and Dr. George Elombi, President and Chairman of Afreximbank.

This transaction marks one of the largest financings ever obtained by an indigenous African energy firm, underscoring strong confidence in Heirs Energies’ operational track record, governance, brownfield expertise, and future growth potential.

Since taking over operatorship of Oil Mining Lease (OML) 17, Heirs Energies has implemented a rigorous turnaround strategy, emphasizing production recovery, asset integrity, and efficiency gains.

Through targeted interventions and infrastructure upgrades, the company has shifted from acquisition-focused funding to a sustainable capital structure suited to long-term reserve development.

Production has doubled since acquisition, rising from 25,000 barrels of oil per day (bopd) and 50 million standard cubic feet of gas per day (mmscf/d) to more than 50,000 bopd and 120 mmscf/d currently. All gas output is supplied to Nigeria’s domestic market, playing a key role in supporting national power generation.

The company has also overhauled community engagement and upheld top-tier health and safety standards.

The new Afreximbank facility will fund accelerated field development, production optimization, and strategic growth initiatives, all while adhering to strict capital discipline.Tony O. Elumelu, CFR, Chairman of Heirs Energies, commented: “This transaction is a powerful affirmation of what African enterprise can achieve when backed by disciplined execution and long-term African capital.

It reflects the successful journey Heirs Energies has taken—from turnaround to growth—and reinforces our belief in African capital working for African businesses. This is Africa financing Africa’s future.

”Dr. George Elombi, President and Chairman of Afreximbank, added: “Afreximbank is proud to support Heirs Energies at this pivotal stage of its growth.

This financing reflects our confidence in the company’s leadership, governance, and asset base, and aligns with our mandate to support African champions driving sustainable economic transformation across the continent.

”The deal highlights Afreximbank’s commitment to empowering indigenous operators capable of advancing energy security, sustainable development, and economic value throughout Africa.

With this funding in place, Heirs Energies is well-positioned for its next growth phase, prioritizing operational excellence, responsible resource management, and lasting stakeholder value.

Heirs Energies Limited is Africa’s leading indigenous-owned integrated energy company, dedicated to addressing the continent’s energy demands while advancing global sustainability objectives. It emphasizes innovation, environmental stewardship, and community development in the evolving energy sector.

The African Export-Import Bank (Afreximbank) is a Pan-African multilateral institution focused on financing and promoting intra- and extra-African trade, supporting industrialization, trade growth, and economic transformation.

Business

Dangote: A Dogged and Fierce Fighter for Local Industries Survival

Nigeria aims to reduce reliance on imported refined fuels by 2024/2025, transitioning to self- sufficiency through the Dangote Refinery and rehabilitated refineries in Port Harcourt, Warri, and Kaduna, with plans to become a net exporter.

Published

5 days ago

December 18, 2025

OCHEFA

91 Views

By OCHEFA

Africa’s billionaire Aliko Dangote, an astute industrialist, is always attentive to the environment around him, embodying the idiom” ears to the ground.

His investments in Nigeria and the other African countries span cement, sugar, petrochemicals, fertilisers and his latest venture, a $20 billion petroleum refinery in the Lekki free trade zone in Lagos.Six months ago, Dangote stepped down as the Chairman of the Dangote Group’s Board on July 25, 2025.

Anthony Chiejina, the Group’s Chief of Branding and Communications, explained that this move allows Dangote to focus more on the refinery, petrochemicals, Fertiliser, and government relations, to elevate the company’s five- year plan to new heights.

Subsequently, Emmanuel Ikazoboh, an independent non- executive director, was appointed Chairman of Dangote Cement Plc.

With his keen awareness of global and local oil and gas developments, Dangote closely monitors issues affecting his refinery’s operations.

He relies on a team of experts to keep him informed, and he responds fiercely against policies threatening his interests.

A current example is his public dispute with Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

With his keen awareness of global and local oil and gas developments, Dangote closely monitors issues affecting his refinery’s operations.

Recently, Dangote accused NMDPRA of economic sabotage, criticising its continued issuance of import licences for petroleum products- licenses totalling approximately 7. 5 billion litres of PMS for early 2026- despite Nigeria’s growing refining capacity.

He claimed this undermines local refining, sustains Nigeria’s dependence on fuel imports, and discourages local investments.

Dangote also alleged collusion between NMDPRA and international traders, which the regulator has denied.

Policies like a proposed 15% duty aim to make imports more expensive and accelerate this transition.

Dangote insists that he seeks accountability, not removal, calling for an investigation into NMDPRA’ s actions.

Following Dangote’s accusations,Ahmed resigned, acknowledging awareness of allegations against him and his family, which have attracted public attention.

He stated he avoided public disputes due to the sensitive nature of his regulatory role but welcomed a formal investigation to clear his name.

President Tinubu then asked the Senate to approve new CEOS for NMDPRA and NUPRC- Engineer Saidu Aliyu Mohammed and Oritsemeyiwa Amanorisewo Eyesan, respectively.

Business

President Tinubu to present 2026 budget to N/Assembly Friday

The 2026 budget is projected at N54.4 trillion, according to the approved 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

Published

5 days ago

December 18, 2025

OCHEFA

127 Views

President Bola Ahmed Tinubu will, on Friday, present the 2026 Appropriation Bill to a joint session of the National Assembly.

The presentation, scheduled for 2:00 pm, was conveyed in a notice issued by the Office of the Clerk to the National Assembly.

According to the notice, all accredited persons are required to be at their duty posts by 11:00 am on the day of the presentation, as access into the National Assembly Complex will be restricted thereafter for security reasons.

The notice, signed by the Secretary, Human Resources and Staff Development, Essien Eyo Essien, on behalf of the Clerk to the National Assembly, urged all concerned to ensure strict compliance with the arrangements ahead of the President’s budget presentation.

The 2026 budget is projected at N54.4 trillion, according to the approved 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).