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

#Lagos Government Shuts Down Coca-Cola, Guinness, and Peak Milk Factories Over Unauthorized Water Use

The Lagos State Government has sealed the facilities of Nigerian Bottling Company (producers of Coca-Cola), FrieslandCampina (makers of Peak Milk), and Guinness Nigeria Plc for unauthorized extraction of large volumes of groundwater.

The enforcement was carried out by the Lagos State Water Regulatory Commission (LASWARCO), according to Mr. Olowu Babatunde, Director of Technical Services at LASWARCO. Speaking on Tuesday in Lagos, Babatunde revealed that the companies had been non-compliant with regulations for over seven years despite numerous engagements.

“We operate under a law that empowers us to regulate entities extracting significant quantities of groundwater for commercial purposes,” Babatunde stated.

“These companies—Coca-Cola, FrieslandCampina, and Guinness—have been abstracting water in large quantities. While some have shown partial compliance, many have failed to fully adhere to the regulations. Now, we are enforcing compliance to ensure they meet all regulatory demands.”

Environmental Concerns Drive Enforcement
The crackdown underscores LASWARCO’s commitment to addressing environmental risks such as groundwater contamination and land subsidence caused by unregulated water abstraction.

The move follows a recent briefing by Lagos State Commissioner for Environment and Water Resources, Tokunbo Wahab, who emphasized the necessity of regulating groundwater activities to safeguard the environment.

Wahab pointed out that the Environmental Management Protection Law of 2017 grants LASWARCO the authority to oversee groundwater usage and penalize defaulters.

Efforts to Encourage Compliance
In 2020, the state government introduced a 75% waiver on groundwater abstraction fees to encourage organizations to comply with the law. However, response rates remained low, prompting LASWARCO to implement stricter enforcement measures.

These measures included issuing 72-hour notices to non-compliant companies and penalizing those who failed to meet the deadline through premises closures and other legal actions.

Wahab noted that all avenues for dialogue had been exhausted, leaving enforcement as the only option to ensure adherence to regulations and protect Lagos’s environment.

This action serves as a warning to other entities engaging in unauthorized groundwater extraction, with the government signaling its commitment to sustainability and legal compliance.

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