Lagos Denies Imposing New Tax on Private Boreholes

The Lagos State Government has dismissed claims that it introduced a new tax on private domestic boreholes, clarifying that its ongoing interventions are strictly regulatory measures aimed at managing groundwater extraction and protecting the environment.

The clarification came after public concern and circulating reports suggested that the state had introduced fresh levies targeting residential borehole owners across the metropolis.

According to regulatory updates outlined in a report on the state’s water directives, the Lagos State Water Regulatory Commission (LASWARCO) explained that private residential boreholes used solely for domestic consumption are not subject to new taxes. The agency emphasised that regulatory oversight focuses on commercial, industrial, and high-density groundwater extractors, alongside the licensing of drilling practitioners.

LASWARCO stated that misconceptions arose from its renewed enforcement of provisions contained in the Lagos State Environmental Management and Protection Law of 2017. The law empowers the commission to monitor the state of underground water reservoirs, ensure sanitary standards, and prevent indiscriminate drilling that threatens urban infrastructure.

Under the regulatory framework, commercial water users, manufacturing plants, beverage producers, and residential estates operating centralised water distribution schemes are required to obtain extraction permits. These entities must also comply with metering protocols to help the state measure consumption levels and track aquifer depletion.

Enforcement Targets Commercial Abstractors and Certified Drillers

Lagos, a coastal megacity with an estimated population exceeding 20 million people, faces severe pressure on its public water infrastructure. The deficit has forced millions of households, commercial establishments, and industrial operators to rely almost entirely on private boreholes and shallow wells to satisfy daily water needs.

State environmental officials have repeatedly warned that unchecked abstraction poses critical risks to the metropolitan landmass. Coastal aquifers are vulnerable to saline intrusion from the Atlantic Ocean and the Lagos Lagoon, which degrades drinking water quality and damages plumbing systems across low-lying districts.

Uncontrolled drilling also increases the likelihood of land subsidence, a geological hazard where the ground slowly sinks due to the excessive removal of subterranean fluid support. The commission pointed out that standardising drilling practices is necessary to avert long-term ecological risks that could affect residential developments and commercial property values.

A central pillar of the regulatory exercise involves the accreditation of drilling contractors operating within the state. Uncertified drillers frequently construct shallow or improperly cased boreholes near septic tanks and industrial discharge channels, leading to microbial and chemical contamination of groundwater supplies.

LASWARCO maintained that professional drillers must register with the state, obtain project-specific drilling permits, and submit hydrogeological data upon project completion. The submission of borehole completion reports provides the government with essential geological data to map underground aquifers and evaluate long-term resource availability.

The state government reiterated that while ordinary households installing domestic boreholes for private use do not face taxation, commercial entities that profit from groundwater exploitation must regularise their permits. LASWARCO noted that it would continue stakeholder engagements with water packaging companies, hotel operators, property developers, and drilling associations to ensure compliance without disrupting legitimate commercial enterprise.

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