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    MarketForces Africa » MarketForces News » Regulatory Breach: Lagos Seals Coca-Cola, FrieslandCampina, Guinness
    News

    Regulatory Breach: Lagos Seals Coca-Cola, FrieslandCampina, Guinness

    Olu AnisereBy Olu AnisereDecember 24, 2024No Comments2 Mins Read
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    Regulatory Breach: Lagos Seals Coca-Cola, FrieslandCampina, Guinness
    Babajide Sanwolu, Lagos State Governor
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    Regulatory Breach: Lagos Seals Coca-Cola, FrieslandCampina, Guinness

    The Lagos State Water Regulatory Commission (LASWARCO) has sealed three companies for extracting large quantities of groundwater for commercial purposes without proper authorisation and compliance with regulations.

    The three companies are Nigerian Bottling Company, producers of Coca-Cola, FrieslandCampina, makers of Peak Milk and Guinness Nigeria Plc.

    Mr Olowu Babatunde, Director, Technical Services, LASWARCO, said this during an enforcement on Tuesday in Lagos.

    Babatunde said that LASWARCO had been engaging with these companies for over seven years to encourage compliance but efforts have been met with limited success.

    “We operate a law that empowers us to regulate most of these heavy abstractors in Lagos State.

    “Abstractors are individuals or entities that extract large quantities of groundwater for commercial purposes.

    “So, these companies that we have sealed, basically three of them – Coca-Cola, FreislandCampina and Guinness, abstract water in large quantities.

    “And we have been engaging them over time. At least, I have been here for more than seven years now. We’ve been engaging these companies for more than seven years now.

    “Some, either they do partial compliance, or some don’t comply at all. So, now that we started implementation of our regulation, we now compel them to fulfill all their regulatory demands,” he said.

    The enforcement was a follow-up of a news briefing on unregulated groundwater abstraction by Mr Tokunbo Wahab, the Commissioner, Ministry of the Environment and Water Resources, held on Monday.

    Wahab noted that the Environmental Management Protection Law 2017 empowered LASWARCO to regulate groundwater activities and impose penalties for unauthorised abstraction.

    He said that unregulated groundwater extraction could lead to serious environmental consequences, including land subsidence and groundwater contamination.

    The commissioner said in 2020, the government offered a 75 per cent waiver on groundwater abstraction fees, but compliance was low.

    This, he said, necessitated LASWARCO to now initiate enforcement actions against defaulters.

    He said that letters were issued to non-compliant organisations with a 72-hour ultimatum to comply and penalties would be imposed on those who continued to operate without authorisation. #Regulatory Breach: Lagos Seals Coca-Cola, FrieslandCampina, Guinness#

    Coca-Cola Friesland Campina Wamco Nigeria GUINNESS Lagos State
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    Olu Anisere
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    Olu Anisere is a financial and economic journalist at MarketForces Africa, specialising in African macroeconomic policy, international finance, energy markets, and continental development.He covers major multilateral institutions, including the International Monetary Fund (IMF), World Bank, and the United Nations Economic Commission for Africa (ECA), providing readers with frontline reporting on policies shaping Africa's economic trajectory.Olu has reported extensively on Nigeria's fiscal and monetary policy landscape, including CBN interest rate decisions, Nigeria's bond market, FX inflows, and the country's engagement with global financial institutions.His coverage spans IMF and World Bank Spring and Annual Meetings, African Ministers of Finance conferences, and high-level economic forums where Africa's development agenda is set.His reporting captures perspectives from Africa's most influential economic voices, including Tony Elumelu, senior IMF officials, and CBN leadership, bringing institutional insight and policy depth to MarketForces Africa's readers.Olu also covers Inside Africa — tracking economic, investment, and development stories from across the continent. Olu Anisere is based in Lagos, Nigeria.

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