Lagos State Seals Coca-Cola, Peak Milk, and Guinness Facilities Over Illegal Groundwater Usage
The Lagos State Government has sealed the facilities of three major companies — Nigerian Bottling Company (producers of Coca-Cola), FrieslandCampina (makers of Peak Milk), and Guinness Nigeria Plc — over unauthorized extraction of groundwater.
The enforcement action was carried out by the Lagos State Water Regulatory Commission (LASWARCO), which accused the companies of failing to comply with water abstraction regulations despite over seven years of engagement.
Mr. Olowu Babatunde, Director of Technical Services at LASWARCO, disclosed the development in Lagos, emphasizing that the commission had exhausted all efforts to ensure compliance. “We have been engaging these companies for more than seven years now. Some either partially comply, while others don’t comply at all,” Babatunde said.
The sealed companies were reportedly extracting large quantities of groundwater for commercial purposes without fulfilling regulatory demands, violating the Environmental Management Protection Law of 2017. The law grants LASWARCO the authority to oversee groundwater abstraction and penalize non-compliance to mitigate environmental risks like land subsidence and groundwater contamination.
Government’s Rationale
The enforcement follows a recent briefing by Tokunbo Wahab, Lagos State Commissioner for the Ministry of Environment and Water Resources, who highlighted the dangers of unregulated groundwater activities. Wahab explained that efforts to encourage compliance, including a 75% waiver on groundwater abstraction fees introduced in 2020, were met with limited responses.
As a result, LASWARCO began implementing stricter enforcement measures, issuing notices with a 72-hour compliance deadline. Companies that failed to meet the deadline faced penalties, including the sealing of premises and potential legal actions.
Environmental Concerns and Next Steps
The state government stressed the need for responsible groundwater management to address pressing environmental challenges. “The sealing of these companies demonstrates our commitment to protecting the environment and enforcing the law,” Wahab said.
This move sends a strong message to other organizations operating in Lagos State, signaling the government’s determination to address environmental risks and ensure sustainable water use practices. It remains to be seen how the affected companies will respond to this action, as it poses significant operational challenges for their businesses.
