The Lagos
division of Appeal Court has affirmed the power of Local Governments in Lagos
State to generate revenue from private car parks and car lots within the State.
The Appellate
Court, in a judgment on Wednesday, dismissed an appeal filled by a
telecommunication firm, Airtel Network Limited against the judgment of Justice
Y. O. Idowu of the Lagos High Court and affirmed that private parking lots are
revenue sources for Local Governments in Lagos State.
The Appellate
Court, in the appeal numbered CA/L/311/2013, specifically sustained the
arguments of the Attorney General of Lagos State, Mr Adeniji Kazeem against
Airtel’s appeal and held that the judgment of the Lagos High Court which had
earlier dismissed the appellant’s (Airtel’s) Originating Summons of 2nd February,
2011, was in order.
According to
the matter, the appellant (Airtel) operated a private parking lot within the
jurisdiction of the 3rd Respondent (Eti-Osa Local Government) and contested
that the latter was restricted in collection of levies to public motor parks.
In its brief of
argument, the appellant had distilled two issues for determination and these
were whether by virtue of Section 7 of the 1999 Constitution of the Federal
Republic of Nigeria and the Fourth Schedule thereof, the functions of the Local
Government which includes establishment, maintenance and regulation of motor
parks envisaged or relates to private car parks/car lots.
Airtel had
further sought the court’s determination on whether the 3rd Respondent (
Eti-Osa Local Government) has power to enact its Parking and Control of Traffic
Bye-Laws as a basis to impose a parking permit fee on the appellant.
In response,
the Lagos State Attorney General represented by Akinkunmi Idowu, a Director in
the State Ministry of Justice, had argued that the Lagos State House of
Assembly enacted the Local Government (Administration) Law (as amended)
pursuant to Section 7 of the Constitution and that the 3rd Respondent was given
powers to make its own Bye-Laws.
In the relevant
Bye-Law - the Eti-Osa Local Government Parking And Control Of Traffic Bye-Laws
(N0.7) of 2002, Section 4(e) states that the Local Government shall issue
permits on private parking development.
Also, Section 7
of the same Bye-Law, which is the interpretation Section of the Bye-Law, states
that approved Car Park includes Motor Parks, private parking lots, or any other
place so designated by the Local Government.
In view of the
provisions, the Lagos Attorney General had submitted that “there is clear and
unambiguous intendment of the legislature to include private parking lots
within the purview of the affected areas subject to the law and it is settled
law that where the words of a statute are plain and ambiguous, they must be
given their plain meaning.”
After reviewing
the arguments of both parties, the Appeal Court ruled that the Local Government
functions were not exhaustive and do not fall outside the scope of Section 7(5)
and Schedule 4 of the 1999 Constitution of the Federal Republic of Nigeria (as
Amended), as the provisions were clear and not inconsistent.
The Court
further held that it was unable to agree with the appellant that the 3rd
Respondent does not have power to regulate/make law that relates to private
parking since there is nothing in the Bye-Law that is inconsistent with Section
7 and Paragraph 1 of the Fourth Schedule to the Constitution.
“In view of the
foregoing, this appeal is hereby dismissed and the decision of the lower court
is affirmed,” the Court ruled.
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