Nigerian Maritime And Aviation Law

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The Lagos State Wharf Landing Fees Bill: Is it Constitutional? January 2009

Vol.22 Issue # 1

Nigeria’s biggest and busiest ports are located in Lagos. Recently, a bill was introduced in the House of Assembly of Lagos proposing the imposition of levies on trucks loading out of any of the ports in Lagos including Apapa and Tin Can Island ports. Trucks loading out of any of the ports in Lagos will be compelled to pay a certain percentage of the value of the goods being conveyed as tax to the local government in which the port is situated. The bill for the introduction of the wharf landing fee has gone through reading stages on the floor of the state House of Assembly and has been forwarded to the appropriate committee for further deliberations. Passage of the bill is expected in the first quarter of 2009. The wharf landing bill has been roundly criticized by the Manufacturers Association of Nigeria (MAN) (an umbrella organization of manufacturers and local industrialists). MAN has argued that the implementation of the bill would add to the rising cost of doing business in Nigeria, and also directly work against the much desired foreign investment inflow into the country. The wharf landing fee is tantamount to double taxation. On its part, the Lagos State Government argues that the bill is necessary to shore up the revenue profile of the host local governments to the ports. The Lagos State

government further argues that the revenue is needed to ameliorate the harmful consequences of trucking activities in the port areas. From the legal standpoint, it is doubtful whether the bill would pass constitutional muster. The Nigerian constitution does not permit the imposition of taxes by states or local government areas on matters in the excusive legislative list. Ports and wharves fall under the exclusive jurisdiction of the federal tier of government. It is probable that the bill if passed into law will be challenged in court. For further inquiries, please contact:

Ms. Nkeiru Onyeaso Tel: +234 808 718 0833 Email: [email protected] Fax: +234 1 2694781

Dr. Virtus Igbokwe Tel: +234 802 220 4755 Email: [email protected] Fax: +234 1 2694781

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©Blackfriars LLP 2008. All rights reserved. This document is for general guidance only. Definitive advice should be sought from counsel if required. Blackfriars LLP is a Nigerian law firm with a representative office in Toronto, Canada.