The Lagos State Government is set to introduce an additional levy on importers who want to continue to patronise Lagos ports of Tin Can and Lagos Port Complex (LPC).
The story is already every where and the are indications that the judiciary might have been called upon to adjudicate in the emerging face-off which may set the Lagos state government and the sole beneficiary; Apapa local government on collision course with importers and their licensed customs agents.
Called “wharf landing fees”, the controversial levy has been categorised into =N=500 and =N=1,000 payable on each 20-footer container and 40-footer container respectively which lands in Lagos ports. Similarly, heavy duty vehicles and cars imported into the country through these ports will attract N1, 000 and N500 respectively.
We are told that the bill has already scaled through first reading and it is likely to come up for public hearing and second reading soon.
The proposed law seeks to empower local governments in the state under whose jurisdiction the cargo pass through to their final destination to collect varied amount of fees on such gods.
Although, we are yet to lay our hands on the details of the new law, everything points to a similarity between what the Apapa local government introduced sometime in 2001 and which did not succeed.
We will like to recall that in 2001 during the tenure of Chief Ojo Maduekwe as transport minister and also while Alhaji Munir Muse was the chairman of Apapa local government.
Alhaji Muse; now a Senator of the Federal Republic of Nigeria representing Lagos state had used his experience as a former port manager in one of the ports belonging to Nigerian Ports Authourity to attempt to take advantage of the relative newness of the democratic dispensation at that time to force wharf landing fees down the throat of importers.
He relied on the fact that the way the Presidency was structured at that time was such that the office of the vice president related directly with the local governments. He had a double advantage in the fact that he was well informed enough to canvass it and he also used the fact that the then-vice president, Alhaji Atiku Abubakar has tremendous background in port operations; being a former top customs officer.
Muse’s manoeuvrings almost caused the then-minister of transport, chief Maduekwe his job as he was not favourably disposed to imposition of any additional levy on Nigerian importers.
At one of the Federal Executive Council (FEC) meetings, the issue of wharf landing fees was tabled, and the minister was given the opportunity to rubbish the proposal. He was able to convince the Council of the dangers inherent in allowing it. And so, it died.
Surprisingly, it is that same levy which could not scale the FEC hurdles in 2001 that the lawmakers in Lagos are bringing in through another corridor.
As much as we acknowledge that the administration of Mr Babatunde Raji Fasola in Lagos state is doing a great job and will require as much funds as it can lay its hands on, we shudder at the economic effect of the law if eventually passed.
Lagos enjoys the enviable status of being the hub of economic activities in Nigeria; playing host to two ports administrative structures and 10 terminals. The ports in Lagos feed the South -Western states and beyond.
But while Lagos is enviably placed, Onne port in Rivers State is also in the same category; serving South- Eastern and South – South states. In fact, the argument sometime is which one (Lagos or Onne) handles the highest volume of imports.
We want to advise Lagos state lawmakers not to be carried away by the lure of how much money that could come in from the levies. They should understand the fact that the multiplier effect of that law is unimaginable.
If Lagos succeeds at it, what stops other state governments from doing it? One imagines what will happen, if Rivers, Cross Rivers and Delta states take a cue and create their own equivalent levies.
In the event that this happens, it is the ordinary Nigerian who will bear the burden through increased payment for goods and services.
It is our opinion that before the lawmakers make good their threat to pass an Act to introduce the wharf landing fees, it is pertinent to ask – what did the Lagos state government or Apapa local government contribute to port operations, transportation and security of consignments in transit to warrant wanting to be compensated by consignees through collection of wharf landing fees. Many of these importers are those who have been made to pay other levies and taxes through other means. The roads through which these containers will pass are in a terribly bad shape, so why add to the burden of the shipping community?
We call on all members of the shipping community to join all those who have already taken steps to stop the proposed law.
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