Business
MAN, NECA Seeks Governor Sanwo-Olu’s Intervention over Factories Shutdown by LASWARCO
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.
Business
Allawee shutting down operations by December 1, warns customers must withdraw by November 30
Allawee warned that payments sent to its account numbers from December 1, 2026 will fail, while its cards will also stop working, regardless of the expiry dates printed on them.
• Allawee logo
Nigerian card-issuing fintech Allawee is shutting down its business and personal account services from December 1, 2026.
This follows its acquisition by Pay Stack.
Accordingly, customers have been given until November 30 to withdraw their funds and make alternative arrangements.
The company disclosed the decision in emails sent to customers, according to TechCabal, explaining that its technology now operates within Paystack following the latter’s acquisition of Allawee in 2025.
Allawee warned that payments sent to its account numbers from December 1, 2026 will fail, while its cards will also stop working, regardless of the expiry dates printed on them.
Customers have been advised to withdraw their balances before the deadline, provide new bank details to people or businesses that regularly pay them, and replace saved Allawee card information on subscriptions and other recurring payments.Allawee said customers would not lose their money because of the shutdown. “Your money will remain yours,” the company said.
Business
Naira Exchange Rates Wednesday, September 2
BLACK MARKET RATES
US Dollar (USD) ₦1,400
Great British Pound(GBP) ₦1,890
EURO (EUR) ₦1,580
Canadian Dollar (CAD) ₦1,020
South African Rand (ZAR) ₦75
Ghana CEDI (GHS) ₦95
West African CFA Buy ₦2, 300
CENTRAL AFRICAN CFA Buy ₦2,150
CBN Exchange Rates
US Dollar (USD) ₦1,329.43
Great British Pound (GBP) ₦1,800.18
EURO (EUR) ₦1,542. 01
Swiss Franc (CHF) ₦1,637.63
Chinese Yuan (CNY) ₦197.79
Japanese Yen (Yen) ₦8.31
West African CFA (XOF) ₦2.36
West African Unit Account (WAUA) ₦1,823.95
Saudi Riyal (SAR) ₦354.08 South African Rand (ZAR) ₦82.47
Business
Dangote, NMDPRA Clash Over Refinery’s Free Zone Status
The case has been adjourned until September 9, 2026, when the court is expected to hear the motion on notice.
A fresh regulatory battle between Dangote Petroleum Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has erupted into a major legal confrontation over the extent of government’s regulatory powers within Nigeria’s free zones.
A Federal High Court in Lagos yesterday restrained NMDPRA from enforcing its directive suspending the loading and truck-out of petroleum products from the Dangote Refinery, effectively stopping the regulator from taking enforcement action against the facility pending the determination of the substantive application.
Justice Akintayo Aluko, in an interim ruling, also barred NMDPRA, its officers, agents and representatives from entering, sealing, shutting down, restricting access to, obstructing, suspending, disrupting, inspecting, supervising, sanctioning or otherwise interfering with the refinery’s operations at the Lekki Free Zone.
The order followed an ex-parte application filed by Dangote Petroleum Refinery and Petrochemicals FZE in Suit No. FHC/L/CS/1174/2026.
At the heart of the dispute is NMDPRA’s August 24, 2026 directive suspending the loading and truck-out of petroleum products from the refinery.
But the case is rapidly assuming significance beyond the immediate dispute over product evacuation.
It raises a fundamental question about the jurisdiction of Nigeria’s petroleum regulator over businesses operating within designated free zones.
Who Regulates the Refinery?
Dangote is challenging NMDPRA’s action on the ground that the regulator lacks the authority to exercise regulatory or oversight powers over operations within free zones, including the Dangote Industrial Free Zone.
Justice Aluko said the documents placed before the court raised “serious issues” requiring determination, particularly whether NMDPRA possesses the regulatory or oversight powers it sought to exercise over the refinery.
The judge also referred to a March 2, 2026 letter from the Attorney-General of the Federation which, according to the court, “clearly stated” that NMDPRA was not entitled to exercise regulatory powers or oversight functions over operations within free zones.The apparent conflict between that position and NMDPRA’s August 24 directive now forms one of the central issues before the court.
Justice Aluko said the critical question was whether NMDPRA should be allowed to exercise the disputed regulatory authority while the substantive issues remained unresolved.
High Stakes for Downstream Market
The dispute comes at a sensitive time for Nigeria’s downstream petroleum industry, where the Dangote Refinery has become a major source of locally refined petroleum products.
Any regulatory action capable of restricting the refinery’s ability to load and evacuate products has potential implications for petroleum distribution and supply across the country.
For Dangote, the legal battle is also about protecting the operational autonomy and investment framework of a refinery established within a free-zone environment.
For NMDPRA, the issue goes to the core of its mandate as the statutory regulator of Nigeria’s midstream and downstream petroleum sector.
The eventual substantive ruling could therefore have consequences well beyond the two parties.
It could establish a judicial precedent on how far petroleum-sector regulators can go in supervising or enforcing their mandates against businesses operating within free zones.
The case has been adjourned until September 9, 2026, when the court is expected to hear the motion on notice.
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