Lagos State says its borehole registration and groundwater regulation measures are intended to monitor water extraction
The Lagos State Government has denied introducing a new tax on private boreholes, saying its recent enforcement activities target compliance with existing regulations governing borehole drilling and groundwater extraction.
Commissioner for the Environment and Water Resources, Tokunbo Wahab, said the exercise is based on provisions of the Lagos State Environmental Management and Protection Law 2017 and does not represent a newly introduced tax regime.
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The clarification follows public concerns over a directive by the Lagos State Water Regulatory Commission (LASWARCO), which warned that unauthorised borehole operators risk having their facilities sealed and facing prosecution.
The development has implications for homeowners, landlords, property developers and businesses that depend on private boreholes to supplement unreliable public water supply.
Lagos says borehole regulation is backed by existing law
Wahab said Section 312(1)(XVII) of the Lagos State Environmental Management and Protection Law 2017 empowers the state's water regulatory authority to oversee borehole drilling and groundwater abstraction.
He explained that the current exercise involves enforcing existing permit requirements rather than introducing a new tax on private boreholes.
The commissioner said groundwater regulation helps protect underground water resources, prevent contamination, reduce the risk of land subsidence and maintain long-term water security.
LASWARCO has intensified compliance monitoring and directed prospective borehole drillers and groundwater abstractors to obtain the necessary permits before commencing operations.
The commission has also warned that it may seal facilities operating without the required approvals and prosecute those responsible.
Borehole operators face enforcement as concerns grow
The government's clarification follows growing attention to the regulation of private groundwater extraction across Lagos.
LASWARCO has raised concerns about indiscriminate borehole drilling and uncontrolled groundwater abstraction, warning that these activities could contaminate underground water sources and threaten the state's long-term water supply.
The government says it began regulating access to groundwater in August 2022, with oversight covering borehole drilling, extraction, consumption, supply and distribution.
In August 2025, the state also warned about possible contamination risks affecting boreholes in the Lekki axis, where inadequate wastewater treatment could expose residents to polluted groundwater.
These concerns are particularly relevant in densely populated areas where households and property developments rely heavily on private boreholes.
Implications for homeowners and property developers
Private boreholes provide an important source of water for residential estates, commercial buildings, industrial facilities and individual households across Lagos.
Stronger regulatory enforcement could increase compliance requirements for developers and property owners who install or operate boreholes. It could also affect project planning where groundwater extraction forms part of a building's water supply infrastructure.
For developers, obtaining the necessary approvals and ensuring that boreholes meet applicable standards will become increasingly important in managing project compliance and avoiding enforcement action.
Property managers may also need to review existing water supply arrangements to establish whether their facilities meet regulatory requirements.
However, the state's position that it has not introduced a new tax does not mean borehole drilling and groundwater extraction are exempt from existing permit obligations.
Questions remain over household borehole requirements
Although the government says its enforcement exercise targets existing regulations, the clarification may not resolve every concern about how the rules apply to individual households.
Some water-rights advocates have argued that provisions of the 2017 law distinguish between household domestic boreholes and groundwater extraction for other purposes, raising questions about the scope of licensing requirements.
The government has not provided a detailed breakdown in its latest clarification of how permit obligations apply to different categories of borehole users.
Clearer guidance on household exemptions, applicable permits, compliance procedures and any associated charges would help residents understand their obligations and distinguish regulatory requirements from taxation.
For Lagos' property market, the issue extends beyond enforcement. Reliable access to safe water remains an important consideration in residential development, property management and housing costs.
The effectiveness of the regulation will ultimately depend on transparent implementation, consistent enforcement and improvements to public water infrastructure that reduce residents' dependence on privately funded boreholes.
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