Lagos threat to shut 14 tankfarms’ll cause fuel scarcity, operators declare


, Lagos State Commissioner for Physical Planning, depots operators on collision course

The threat to shutdown 14 tankfarms in Ijegun area of Lagos, Nigeria’s commercial capital, by state  Commissioner  for  Physical  Planning,  Dr. Idris  Salako, will cause fuel scarcity, tankfarms’ operators have said.

Salako and the operators in the state have earlier bickered over the commissioner’s threat to shutdown the tankfarms.

The commissioner had during a Stakeholders Meeting on Friday 20th September 2020 regarding the operations of Tankfarms in Lagos State, alleged that the tankfarms were violating extant laws on environment and physical  Planning in Lagos, threatening to shut them down.

Reacting to the allegations and the threat, 14 operators of the tankfarms in Lagos, declared that Salako was economical with the truth based on all his allegations.

“He stated that our members were operating illegally in Lagos State, that our members do not pay any taxes, charges or fees to the Lagos State Government and that our members have, by their operations, destroyed infrastructural facilities within their operational areas.   The   Hon   Commissioner also threatened to immediately shut down Tankfarms,” the tankfarms operators declared in a statement issued by their secretary, Barrister Eshiet E. Eshiet, at the weekend.

“These statements have, to say the least, painted the operators of Tankfarms in very bad light, hence the need to make some clarifications in respect of our members operations. As an umbrella organization of all the Oil Companies currently engaged in the operation of Petroleum Storage Tankfarms and Facilities at Ijegun –   Egba, Satellite Town, Lagos, along the Ojo Creek Channel, to wit: A.A. RANO Nigeria Limited, AIPEC Oil & Gas Limited, Bond Global Energy Projects Limited, Chipet International Limited, Emadeb Energy Services Limited, First Royal Oil Nigeria Limited, MAO Petroleum  Company  Limited,  Menj  Oil  Limited,  Ocean  Pride  Energy  Services  Limited,  Stallionaire  Nigeria  Limited,  Star  Synergy  Petroleum  Services  Limited,  Wosbab  Energy  Solutions  Limited  and  Rainoil  Limited.

“The Association  wishes  to  restate our members’ commitment  to  contributing  to  government’s effort in building a robust business environment to stimulate economic growth.”

Stating that it “very sad and embarrassing for the Hon Commissioner to publicly say that the Tankfarms do not pay taxes, charges and fees to the Lagos State Government,” Eshiet maintained that all the b14 tankfarms operators have duly paid their taxes and even spent millions of naira on Corporate Social Responsibility Investments in Lagos.

“The Tankfarm operations have contributed immensely to National economy by way of revenue through taxes, levies and charges to the Federal and State governments, as well as the local governments where the storage facilities are located. Regarding payments to Lagos State Government, we wish to state that our members pay the following taxes, charges and fees to the State Government, namely: Lagos State Signage & Advertisement Agency (LASAA); Lagos State Environmental Protection Agency (LASEPA); Lagos State Government-PAYEE; Lagos State Government Development Levy; Radio and Television License Fees- Local Government; and Land Use Charge.

“Others are Wharf Landing Fees Collecting Authority8.Lagos State Ministry of the Environment and Water Resources; and Lagos State Waste Management Authority (LAWMA).

“From the above mentioned payments, it very sad and embarrassing for the Hon Commissioner to publicly say that the Tankfarms do not pay taxes, charges and fees to the Lagos State Government. The Tankfarms are an integral part of petroleum product supply chain in ensuring product supply, energy stability and energy security. Tankfarms have played and will continue to play significant roles in the supply  and  distribution  of  petroleum  products  across  the  nation.

“Taking cognizance of the current bleak global economic outlook, occasioned by the pandemic that has brought economic activities to a very low level, with countries across the world focusing on measures to revitalize  businesses,  through  injecting  finances  and  funds  to  stimulate  business  activities,  stimulate  national  economic  growth,  industrial  and  business  development  and  advancement,  it  will  be  counter-productive to shut down or close the Tankfarms at Ijegun or at any place.

“Any shut down or closure of Tankfarms will result in national economic crisis, energy insecurity, massive unemployment, banking and  financial  crisis  and  the  shock  in  the  banking  sector  will  adversely  affects  other  business  and  commercial activities. These might be difficult for the Nation to bear.

“With the threat to shut down or close Tankfarms we wish to state that our national economy and energy supply, marketing and distribution of petroleum products across the country will be adversely affected, with a resultant unprecedented negative impact on energy security.

“Scarcity of petroleum products and long queues with attendant impacts on business, movements and safety will resurface in response to the cut in supply chain.  All our members are committed to conducting their business operations in line with best practices, strict adherence  to  safety  rules  and  regulations,  improving  the  state  of  infrastructure  within  our  corridor,  safeguard life and property,” the tankfarm operators said.

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