The Lagos State Water Corporation (LWC) has dismissed 391 ‘redundant’ employees as part of its ongoing effort to reorganize the company’s structure in the face of financial and operational challenges.
The corporation In a circular on Thursday said that workforce streamlining was necessary due to ongoing water scarcity in the state, despite significant infrastructure efforts.
LWC highlighted that it is grappling with significant financial and operational difficulties, with challenges in generating sufficient revenue to fulfill its obligations.
According to the circular, the unreliable water supply has led to a decreasing customer base and falling revenues.
“The Lagos Water Corporation has announced the disengagement of 391 redundant staff as part of its ongoing restructuring efforts aimed at enhancing operational efficiency and meeting the evolving demands of the organization.
“The decision to streamline the workforce is in response to the persistent challenge of water scarcity in the state despite extensive infrastructure projects.
“LWC has faced substantial financial and operational challenges, struggling to generate adequate revenue to meet its obligations.
“The corporation’s unreliable water supply has resulted in a shrinking customer base and declining revenue,” the circular read.
Moreover, Engr. Mukhtaar Tijani, the Managing Director of LWC, said the overhaul of the department is necessitated by a Personnel Audit carried out in October 2023 to evaluate employee performance in the country.
The report outlined the necessity for staggered actions; the initial phase led to the release of 425 temporary employees with expired contracts.
Furthermore, Tijani noted that the current second phase focuses on permanent employees who are unadvancable and have been static in their positions for up to 30 years, with roles or offices now deemed redundant.
Lastly, he mentioned that the forthcoming third phase will concentrate on retaining skilled technical staff to improve the utility and commercial efficiency of the Corporation.
Meanwhile, Tijani noted that the State Government approved the payment of three months’ salary as compensation for notice and redundancy, along with statutory benefits like pensions for the impacted employees.
“In line with the Public Service Rules, the State Government has approved the payment of three months’ salary in lieu of notice and redundancy payments, in addition to statutory benefits such as pensions for the affected staff.
“Furthermore, the Corporation has adopted a new organogram to enhance operations and financial sustainability. This strategic shift underscores the Corporation’s commitment to delivering a sustainable and reliable water supply to the residents of Lagos State.
“The Lagos Water Corporation appreciates the hard work and dedication of the affected staff members over the years; however, this action is deemed imperative for the development of the state,” the statement added.
