Tank farm operators kick as Lagos charges N300m for regularisation

Tank farm operators under the aegis of Ijegun-Egba Tankfarm Owners and Operators Association (ITOOA) have faulted the decision of the Lagos state government to charge N300 million per operator for regularisation.

According to the association, Idris Salako, Lagos commissioner for physical planning, had during a stakeholders meeting in September accused its members of operating illegally in the state.

It said the commissioner also threatened to shut down tank farms over allegations of destruction of infrastructural facilities within operational areas and non-payment of levies to the state government.

In reaction, via a statement issued on Sunday by Eshiet Eshiet, ITOOA’s secretary, the association said its members are duly licensed and authorized by the Department of Petroleum Resources (DPR) to operate petroleum storage facilities at Ijegun and have all requisite permits, licence from all appropriate agencies of government to construct, own and operate tank farms, as well as engage in oil marketing and petroleum product distribution operations.

The tank farm operators said they pay several taxes to the Lagos state government through its agencies such as Lagos State Signage & Advertisement Agency (LASAA), and Lagos State Environmental Protection Agency (LASEPA).

The association also said that tank farm owners at Ijegun have individually and collectively, expended over N2 billion in tackling some pressing infrastructural deficits and challenges within their corridor of operations.

“Regarding the regularization of our members’ drawings with the Lagos State Government, let it be on record that in 2014, our members through the Association applied for regularization,” the statement read in part.

“Recently, when the Government asked our members to submit documentation for regularization, all our members complied. But to our greatest shock, each company was arbitrarily charged approximately N300 million. With the present global economic outlook, this is outrageous and a big strain on our members.”

The association added that it will be “counterproductive” to shut down or close tank farms in the country, saying “ It will include 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 the supply chain.”