Lagos denies introducing new borehole tax, says regulation targets illegal drilling
Government has denied introducing a new tax on private boreholes, saying its ongoing exercise is an enforcement of existing regulations governing borehole drilling and groundwater extraction.
The Commissioner for the Environment and Water Resources, Tokunbo Wahab, said the exercise, which has generated concerns on social media over an alleged new borehole tax, was aimed at ensuring compliance with existing environmental and water resource management laws.
According to a statement published on the state government’s official Facebook page on Saturday, Wahab explained that the regulation was backed by Section 312(1)(XVII) of the Lagos State Environmental Management and Protection Law 2017.
The provision empowers the Lagos State Water Regulatory Commission (LASWARCO) to regulate borehole drilling and groundwater abstraction across the state.
He said the government had not introduced a new tax policy but was enforcing existing permit requirements for drilling boreholes and extracting underground water.
The commissioner explained that groundwater regulation was an internationally recognised practice designed to protect underground water resources, prevent contamination, mitigate land subsidence and ensure long-term water security.
The clarification followed public concerns over a recent warning by LASWARCO that it would seal illegal boreholes and prosecute operators extracting groundwater without the necessary permits.
In a statement issued by its Executive Secretary, Oluwabukola Khadijah Adeyemo, the commission directed prospective borehole drillers and groundwater abstractors to obtain the required permits before commencing operations.
Adeyemo said the agency had observed indiscriminate borehole drilling and groundwater extraction without the requisite approvals, warning that facilities operating in violation of the regulations would be sealed and their operators prosecuted.
The commission identified groundwater contamination, land subsidence and threats to the long-term water security of Lagos residents as major risks associated with uncontrolled drilling and extraction.
It said its regulatory mandate under the 2017 environmental law covered borehole drilling, groundwater abstraction and water supply services across the state.
The state government began regulating access to underground water in August 2022 as part of efforts to strengthen oversight of borehole drilling, groundwater consumption, supply and distribution.
The initiative was designed to prevent pollution and promote sustainable management of the state’s groundwater resources.
In August 2025, the government also warned residents in the Lekki axis about possible contamination of borehole water, citing health risks associated with untreated wastewater.
The warning was issued by Mahmood Adegbite, Permanent Secretary in the Office of Drainage Services and Water Resources, during a stakeholders’ meeting.
Adegbite said contaminated boreholes in the area could expose residents to health hazards, adding that proper wastewater treatment was necessary to prevent diseases associated with untreated waste.
The latest clarification highlights the distinction between taxation and environmental regulation, with the government maintaining that the current exercise is intended to enforce existing permit requirements rather than impose a new tax on private borehole owners.
