Press Releases

Fashola Signs Wharf Landing Bill Charges Into Law, Exempt Foreign, Govt Agencies

Mar 16, 2009 - Lagos State Governor, Mr. Babatunde Fashola (SAN) on Monday signed two bills, one of which provides an amendment to the partnership law cap one and the law on the State Wharf Landing charges bill with a provision for exemption for all goods that belong to any agency be it Federal Government, Foreign governments, the Lagos State Government or any local Government of any state and its agencies from being subjected to the charges.

Speaking during the signing of the two laws which took place at the Lagos House, Ikeja, Governor Fashola affirmed that the wharf landing bill legislation is a brainchild of the various tax, fiscal and regulatory authorities in the country who recognized and recommended the need for the payment of the fees.

He added that this has become imperative because it is the various local governments who bear the burden of the impact of maritime activities.

Governor Fashola also informed that the new law on partnership enables a new wave of partnership while amending the old laws of partnership in a way that makes it easy for partnership to be done and allowing enterprise to develop.

He explained that the new laws are some of the various ways, policies and strategies of the administration towards not only fighting poverty but supporting entrepreneurship and creating room within the state and economy.

In his words: “we continue to hold the belief that in spite of global difficulties, the opportunities for growth and development lies in this part of the world in an emerging market in which Nigeria and Lagos as the economic point are favoured destinations”.

He expressed appreciation to the state legislators for bringing the processes about.

Earlier, while explaining the contents of the two bills, Special Adviser to the Governor on Political and Legislative Powers Bureau, Hon AbdulLateef Abdul Hakeem said the new law provides for the payment of Wharf Landing bill on any good that passes through any local government area or council development area in the state.

He added that the Wharf landing bill provides that from the commencement of the law, it shall become lawful for local government in the state to charge wharf landing bill in respect of goods or consignment transported from a particular port to any local government area.

Hon Abdul Hakeem added that in determining who is liable the law says anybody in possession of any item or consignment in respect of which Wharf landing fee is chargeable whether he is the owner, shipper, transporter or agent shall be liable to pay the landing bill.

He explained that in order to prevent multiple taxing and prevent multiplicity of centres , the House of Assembly has proposed that the State shall establish or designate any authority as the collecting authority for the purpose of collecting the Wharf landing fee on behalf of all Local Governments and Council Development areas in the state.

He informed that there shall be only one payment and that the law also empowers the Commissioner for Finance to establish a Wharf landing fees fund which shall be lodged at designated banks and which at the end of every three months will be determined by the Commissioner for Finance on amount to be shared by each local government.

The Special Adviser also said the sharing shall not take place until the cost of collection has been deducted as arranged by the State Government and the collecting authority.

Section four of the new law on Wharf landing also empower the agents to stop any vehicle for the purpose of determining whether the goods being conveyed fall under those that should pay the Wharf landing fee and upon inspection are empowered to collect the fees for the purpose of ensuring compliance with the laws.

“Failure to pay the Wharf landing fees attracts a punishment of N500,000.00 for corporate bodies in addition to paying the Wharf charges and the cost of litigation while in respect of private individuals, failure to pay the Wharf landing bill attracts a fine of N100,000.00 in addition to paying the Wharf landing fees and cost of litigation”, Hon AbdulHakeem added.

He said the charges would not be collectable within the seaport premises but outside.

The new law on partnership, according to Hon AbulHakeem seeks to further amend the partnership law and substitute the provision of the word Commissioner with the word Attorney General and the word person to mean an aggregate of persons.

He added that section seven of the principal law is now inserted to establish a limited liability company because the principal law takes care of only a principal partnership, adding that the principal of a limited partnership are liable to contribute to the asset of the company in case of its being wound up and a provision of capital adequacy ratio.

Hon AbdulHakeem also said professionals who come together to form a partnership are also liable under the Personal Income Tax while the issue of insurance companies not having members of the public protected is also addressed by the new law.

According to Hon Abdul Hakeem, the new laws represent a continuation of the determination by the present administration to enhance the living conditions of the people of Lagos State.

The event was witnessed by members of the State Executive Council and Local Government and Council Development areas Chairmen.