Coca-Cola and Guinness were threatened with shutdowns in Lagos, Nigeria, after failing to follow government safety regulations.
What's happening?
The government of Lagos temporarily shut down three companies' operations in the region in December. Nigerian Bottling Company, which produces Coca-Cola in the region, was accused of illegal extraction of groundwater, with Guinness Nigeria and FrieslandCampina also implicated.
The Lagos State Water Regulatory Commission reported the companies have routinely had issues of non-compliance, even after being offered a "75 percent waiver on groundwater abstraction fees," per Platform Times.
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Definitely 💯 It's not the first time that Coca-Cola has come under fire of late. From drastically reducing its plastic recycling goal to using generative AI in its Christmas commercial, Coca-Cola can't catch a break. Los Angeles County is even suing both PepsiCo and Coca-Cola for allegedly having "misled the public about the recyclability of their plastic bottles and downplayed the negative environmental and health impacts of plastic disposal," according to the Associated Press.
Why are the regulations important?
Groundwater is often needed for industrial processes, such as cooling and cleaning. However, improper or excessive extraction can pose several environmental risks, like contamination of the water supply and completely drying up lakes or streams. Lax enforcement of regulations allows the companies to put nearby residents and the environment at risk.
What's being done about the shutdown?
Coca-Cola and the other companies received letters with an ultimatum: fix the issues of non-compliance within 72 hours, or face shutdown and continued penalties. No compliance, no production. Hit them where it hurts: the wallet.
Olowu Babatunde, the director of technical services at the Lagos State Water Regulatory Commission, hopes the shutdown will finally encourage the companies to comply with the proper regulations.
"Some [companies] either comply partially, while others fail to comply at all. Now that we've begun the implementation of our regulations, we are compelling them to meet all their regulatory obligations," Babatunde said, per Platform Times.
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