LASWARCO Shuts FrieslandCampina, Coca-Cola, and Guinness Nigeria for Regulatory Breaches

… Tokunbo Wahab: Unregulated Groundwater Extraction Has Grave Environmental Risks

The Lagos State Water Regulatory Commission (LASWARCO) has sealed off FrieslandCampina, makers of Peak Milk; Nigerian Bottling Company, producers of Coca-Cola; and Guinness Nigeria Plc for extracting large quantities of groundwater without proper authorisation.

The enforcement exercise, which took place on Tuesday, December 23, 2024, comes after seven years of failed engagements to ensure compliance with the state’s groundwater regulations.

Tokunbo Wahab: Unregulated Groundwater Extraction Has Grave Environmental Risks

Speaking during a media briefing on Monday, December 22, 2024, Lagos State Commissioner for Environment and Water Resources, Tokunbo Wahab, warned that unregulated groundwater extraction could lead to severe environmental consequences, such as land subsidence and groundwater contamination.

He stated that LASWARCO derives its authority from the Environmental Management Protection Law 2017, which empowers the commission to regulate groundwater abstraction and impose penalties on non-compliant entities.

Wahab also revealed that the Lagos State Government had introduced a 75% waiver on groundwater abstraction fees in 2020 to encourage compliance, but uptake remained low, prompting the need for enforcement action.

Seven Years of Non-Compliance

LASWARCO’s Director of Technical Services, Mr. Olowu Babatunde, explained during the enforcement exercise that the companies sealed off had been extracting groundwater on a commercial scale without adhering to regulatory requirements.

“Abstractors are individuals or entities that extract large quantities of groundwater for commercial purposes. These companies—FrieslandCampina, Coca-Cola, and Guinness—fall into that category. Despite engagements over the past seven years, they have either partially complied or failed to comply entirely,” Babatunde said.

He added that the regulatory agency had issued a 72-hour ultimatum to the defaulters to meet compliance standards before enforcement actions were taken.

Sustaining Groundwater Resources

The Lagos State Government, through LASWARCO, is committed to safeguarding groundwater resources to prevent environmental degradation. Wahab reiterated the need for organisations operating in Lagos to comply with regulatory standards to ensure the sustainable use of natural resources.

Penalties will be imposed on organisations that continue to operate without proper authorisation, the commissioner affirmed.

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