Lagos Government Shuts Down Coca-Cola, Guinness, and Peak Milk Factories Over Unauthorized Groundwater Extraction.

The Observer
2 Min Read

The Lagos State Government has taken decisive action by sealing the facilities of three major companies—Nigerian Bottling Company (producers of Coca-Cola), FrieslandCampina (makers of Peak Milk), and Guinness Nigeria Plc—for the unauthorized extraction of large quantities of groundwater. This enforcement operation was carried out by the Lagos State Water Regulatory Commission (LASWARCO), as reported by the News Agency of Nigeria.

Mr. Olowu Babatunde, Director of Technical Services at LASWARCO, explained that the agency had been in discussions with these companies for over seven years to ensure compliance with water abstraction regulations, but these efforts have largely been ignored or only partially adhered to.

The crackdown underscores LASWARCO’s commitment to enforcing regulations and mitigating environmental risks associated with unregulated groundwater extraction. Tokunbo Wahab, Commissioner for the Ministry of Environment and Water Resources, emphasized the necessity of regulating groundwater activities to prevent issues such as land subsidence and contamination.

Despite the introduction of a 75% waiver on groundwater abstraction fees in 2020 to encourage compliance, many organizations failed to respond, prompting LASWARCO to issue notices with a 72-hour deadline for regulatory compliance. Non-compliant companies now face penalties, including the sealing of their premises and potential legal actions. Wahab highlighted that all avenues for dialogue had been exhausted, making enforcement measures essential to uphold the law and protect the environment.

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