November 25, 2020

Tankfarms pivotal to petroleum distribution, national economy, operators tell LASG

Apapa-Oshodi Gridlock

…N2bn spent on infrastructural devt

By Sebastine Obasi

Tankfarm operators within Ijegu-Egba axis of Lagos have reiterated their pivotal role in the distribution of petroleum products and Nigeria’s economic development.

Their assertion is coming on the threat of the Lagos State Commissioner for Physical Planning, Idris Salako to shut down tank tankfarms over alleged non payment of taxes and destruction of infrastructural facilities within their operational areas.  Secretary of the tankfarm operators, Eshiet E. Eshiet explained that the Association has contributed not less than N2 billion to the infrastructural development of Lagos State. He said, “The environmental outlook and challenges were apparent on our members’ entry into the Ijegun Shoreline to develop their respective facilities. The area was a wetland, without access roads. Further to our members’ commitment to improve the environment, safety and infrastructural deficits within the tankfarm cluster and environ, the Association has undertaken several collective projects and actions with a view to addressing some of the infrastructural deficits.

”As credible and responsible business owners who place high premium on life, safety and environment, the Association has since 2013 been responsible for the maintenance, rehabilitation of Marwa Road and sections of Old Ojo Road, the reconstruction of Pioneer Road and others roads within our operational environment. These are just a few of the interventions that the Association and member companies have undertaken to address the infrastructural deficits and environmental challenges within the Ijegun axis.

“It is of interest to note that the tankfarms at Ijegun have individually and collectively, as an Association, expended over ₦2 Billion in tackling some pressing infrastructural deficits and challenges within our corridor of operations,” he said. Debunking the allegation on non payment of taxes to government, the Association stated, “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 and 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, Land Use Charge, Wharf Landing Fees Collecting Authority, Lagos State Ministry of the Environment and Water Resources, Lagos State Waste Management Authority (LAWMA), etc.

“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.”

According to the Association, 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. The Tankfarms at Ijegun, Satellite Town, Lagos play a very pivotal part in petroleum distribution in Nigeria, accounting for 35 percent national petroleum product distribution.

“Our members are committed to ensuring efficient petroleum product distribution, and by extension ensuring energy security in line with the Federal Government’s policies and regulations. Our member companies have contributed immensely in ensuring energy stability and energy security in the nation, and have always rose to the occasion in ensuring efficient supply and distribution of petroleum products to avoid scarcity of products,” it added.