Even as downstream operators are yet to come to terms with federal government’s new order on fresh tank farms in Lagos, the Lagos state government has introduced a new levy which it calls “environmental development charge (EDC), and which is collectable from all tank farms operating in the state.
Industry sources confirmed last week that the rates that is payable by tank farm owners vary from N150, 000 to N200, 000 and that payment depend the size of the business premises. It was also confirmed that failure t pay the levies will attract withdrawal of permission to operate such a depot.
Shipping Position Weekly confirmed from managers of some of the depots in Lagos that the levy is recent development and that henceforth it would be collected annually as a means of helping the state government to clean up the environment in which the tank farms operate and to ensure that the environmental effect of their operations are taken care of
Part of proceeds from the levy is expected to be channelled towards the clearing and repair of the dilapidated access roads along the Ibafon-Ibru axis of the congested Oshodi – Apapa expressway.
Sources also hinted that apart from the EDC, each of the many tank farms has also been directed to construct a sampling well where leakages from the tanks can be detected before leaking into the soil.
A top manager at Sahara Energy limited told Shipping Position Weekly that “the well is to be filled with clean water and from time to time, we will be taking water from this well, if there is any oil stains in it, then that tells you that one of the tanks is leaking into the soil and proper actions will be taken”.
Meanwhile, the collection of the EDC has sharply divided owners of the tank farms, many of who sees the new levy as one tax too many and have vowed to resist its collection.