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The Ijegun-Egba Tank Farm Owners and Operators yesterday warned against closure of their businesses, saying the development would brew national economic crisis, energy insecurity, massive unemployment, banking and financial crisis in the country.
Barrister Eshiet.E.Eshiet, Secretary of the tank farm owners, revealed this in Lagos in reaction to the recent threat by the Lagos state government to shut the yank farms
He said with the threat to shut down or close Tankfarms, the nation’s 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.
According to him, 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.
He added: “Taking cognisance 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”.
He assured that the association’s 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, protect and preserve the environment as well as maintaining a good business environment.
He also faulted recent claims of the Lagos State Commissioner for Physical Planning, Hon Idris Salako (Dr) that his members are operating illegally and do not pay any taxes, charges or fees to the state government.
He further said it was not true that his members have destroyed infrastructural facilities within their operational areas.
He maintained that all members of the association are duly licensed and authorised by the Department of Petroleum Resources (DPR) to operate petroleum storage facilities (Tankfarms) at Ijegun and have all requisite permits, licenses from all appropriate agencies of government to construct, own and operate Tankfarms, as well as engage in oil marketing and petroleum product distribution operations.
According to him, the member companies have their facilities mostly on considerable distance to community houses and were granted title by the Land registry, Federal Ministry of Lands and Housing to use same for industrial and/or commercial purposes.
He explained that the cluster our members occupy was a wetland, of which rigorous sand filling and shoreline protection were undertaken at great cost, thereafter pilling in line with best practices to sustain the structures
He a
dded: “Regarding the regularisation of our members’ drawings with the Lagos State Government, let it be on record that in 2014, our members through the Association applied for regularisation.
“The government, at the time, was not keen at regularising same.
Recently, when the government asked our members to submit documentations for regularisation, all our members complied. But to our greatest shock, each company is arbitrarily charged approximately N3million. With the present global economic outlook, this is outrageous and a big strain on our members”
He disclosed that his association has expended over N2 billion in tackling some pressing infrastructural deficits and challenges within its corridor of operations, namely:
He said it was in appreciation of his members effort in maintaining Marwa Road that the Oriade Local council intimated the then Governor of Lagos State, vide letter dated 10th July 2018, of the association’s efforts and solicited the support of the government towards a long term solution.
He said his members 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.
He said Lagos State Signage & Advertisement Agency (LASAA); Lagos State Environmental Protection Agency (LASEPA), Lagos State Government-PAYEE, Lagos State Government Development Levy and Radio and Television License Fees- Local Government to mention a few.
“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.
