For years, the Lagos State Government and the Federal Government have been at daggers drawn over control inland waterways, leading to multiple-taxation of operators in the sub-sector. In this report, TOLA ADENUBI looks at recent ministerial appointments and what might be. Excerpts
The stretch of inland waterways in Lagos has, over the years, been a source of income for two sets of operators, ferry and dredgers operators. While the ferry operators earn their money by moving to-and-fro across the State inland waterways, the dredgers have been known to dig deep into the belly of the waters to bring out materials that are very useful for construction purposes.
With these commercial activities came regulation, which has come in two-fold, Federal and State. While the National Inland Waterways Authority (NIWA) has led the regulation on behalf of the Federal Government, the Lagos State Waterways Authority (LASWA) has led the State regulation.
These regulations from the Federal and State agencies have led to multiple taxation for passenger boat operators under the aegis of the Association of Tourists Boat Operators and Water Transporters of Nigeria (ATBOWATON), Waterfront Boat Owners and Transporters Association of Nigeria (WABOTAN) and dredgers under the aegis of the Dredgers Association of Nigeria (DAN).
With operators paying to agencies on both front, federal and state, many operators have simply gone out of business due to these multiple forms of taxation or has simply had to cut corners to survive.
New twist
The emergence of a former governor of Lagos State, Senator Bola Ahmed Tinubu as president of the federal republic has suddenly thrown a twist in the lingering face-off between the Federal Government and the Lagos State Government over who controls what in the State’s vast inland waterways.
President Tinubu’s appointment of two “Lagos men”, Gboyega Oyetola as Minister of Marine & Blue Economy and Dele Alake as Minister of Solid Minerals Development has further brought fresh hope to the embattled operators that very soon, the issue of multiple taxation on Lagos waters will become history.
Stakeholders expect that the face-off between the two levels of government, which had dragged for too long and is currently at the Supreme Court, would be resolved and settled out of court.
Checks by the Nigerian Tribune revealed that Lagos State is still in court with the Dredgers Association of Nigeria and Association of Tourist Boat Operators and Water Transporters of Nigeria with National Inland Waterways Authority joined as interested party on who is right to adjudicate between the federal government and Lagos government on waterways, marine and natural resources development in the state.
Multiple taxation
Speaking with the Nigerian Tribune, National President of ATBOWATON, Dr Gani Tarzan Balogun, explained that he hopes that the recent ministerial appointment of people close to the Lagos State government in marine and waterways sub-sector of the economy will lead to a quick resolution of the fight for the control of the waterways in Lagos.
According to Dr. Tarzan Balogun, “All we want is an end to the struggle for control of the waterways in Lagos because we are the ones suffering. We pay taxes to the Federal Government through NIWA, we also pay same taxes to the Lagos State Government through the LASWA and the Waterfront ministry. Also, the Local Government officials come after us, demanding all forms of taxes that we have already paid to the Federal and State government. It’s a confused situation on the Lagos waterways.
“Ferry operators are barely struggling to break even due to these multiple taxation by all tiers of government. We need to know who is in charge of the waterways so that we can know who we should be paying to. This is an issue that has gone to court and is already at the Supreme Court.
“With the appointment of a former Commissioner in Lagos as Minister of Solid Mineral, Development and the former Osun State governor as Minister of Marine and Blue Economy, we are hopeful that the issue of multiple taxation will be addressed.
“Boat operators are suffering under the yoke of double taxation by the Federal Government and the State government. It’s important that this issue is addressed once and for all.
“If it is N10 that we should be paying to operate on the waterways, government should let us know who we should be paying to. A situation where the federal government collects N10 from us, the State government also collects N10 from us and the local government also comes to ask for N10 from us is killing business.
“Many of our members are struggling to remain in business due to these multiple forms of taxation.”
Also speaking during a stakeholders meeting held recently at the Folarin Coker Hall in Alausa, Lagos, the Dredgers Association of Nigeria expressed unhappiness with the criminalisation and punitive oversight measures meted out to operator who tries to resist multiple taxes and levies from the Ministries of Waterfront, Environment, Safety Commission and LASWA.
Richard Ntan, Executive Secretary of the Dredgers Association, noted that body has always been supportive to the development of the state but in contrast seen by the state government officials as enemies, adding that his members particularly those in Lagos have been visited with draconian measures. He informed that sand mining in Lagos has contributed to the development of the state, supportive of bricks and mortars constructions of new estates and reclamation efforts, jobs creation in the downstream construction businesses and aiding navigational ecosystem.
Ntan also submitted that the association has contributed to the growth of sand mining support zone communities through the construction of roads and drainages, stating that all sands mined in Lagos are used to develop the state and not taken outside the state. He further alleged that despite the huge taxes and levies paid by Operators, Lagos officials are bent on running Dredgers out of the state.
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