LCCI proposes 13% derivatives to states hosting ports

The Lagos Chamber of Commerce and Industry (LCCI) says the 13 per cent derivatives principles applied to oil producing areas should be extended to states hosting the nation’s ports.

The President of LCCI, Mr Babatunde Ruwase, made the suggestion at a news conference on the state of the economy in Lagos.

Ruwase said that ports activities created profound negative externalities to host states and exerts tremendous pressure on the states’ facilities, which significantly affects roads, health facilities, traffic, environmental management and pollution.

“These are costs that are borne by the states in which the ports are located and offers basis to argue that derivation principles should be applied to revenue generated through customs’ duties from the ports,” he said.