Financial Energy Review
.,.by Ben Ndubuwa……
Ijegun-Egba TankfarmOwners and Operators Association is kicking against the threat by Lagos State government to shut down their businesses and operations over alleged non-payment of taxes and environmental degradation.
The tankfarm owners said they are surprise that the Lagos State Commissioner for Physical Planning, Hon Idris Salako (Dr) at the Stakeholders Meeting on Friday 20thSeptember 2020 had accused them of abdicating their corporate and social responsibilities both to the Lagos State government and their host communities.
In a statement made available by the tankfarm owners, they expressed dissatisfaction over Lagos State government move to lebell their busineseses illegal.
These allegations by Lagos State government they said had put them in bad light. “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. 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” Barr Eshiet E. Eshiet, Secretary of the Association said.
“We wish to categorically state that, contrary to the Hon Idris Salako’s statement,all our members are duly licensed and authorized 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. Our member companies have their facilities mostly on the shoreline of the Ojo Creek Channel, with a 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” the Secretary said.
“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 thereon.
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 government, at the time, was not keen at regularizing same. Recently, when the Government asked our members to submit documentations for regularization, all our members complied. But to our greatest shock, each company is arbitrarily charged approximately N300,000,000.00 (Three Hundred Million Naira). With the present global economic outlook, this is outrageous and a big strain on our members”
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 hasundertaken 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 Roadand sections of Old Ojo Road, the reconstruction of Pioneer Road and others roads within our operational environment.Theseare 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 Ijegunhave individually and collectively,as an Association, expended over ₦2 Billion in tackling some pressing infrastructural deficits and challengeswithin our corridor of operations” he said.
