Unit area charges
The unit area charge is popular in the high forest states of Ogun, Ondo, Edo, Ekiti and Delta states. Fixing tariff rates on the basis of area involves classifying forests into zones according to the richness of the area in terms of: species composition; stocking; proximity to markets or ports; and the nature of the terrain (Obaseki, 1970). A fixed rate is charged per hectare cut in each zone. These rates can be derived from the average out-turn volume per hectare over previous years (Mervart, 1972).
In Oyo State, forest reserves are classified into two zones. Zone 1, which includes Shasha, Ago-Owu and Ipetu-Ikeji forest reserves, is classified as rich forests and charges are N 600 per hectare, while the remaining forest reserves are classified as Zone 2. The forests is Zone 2 are poor and charges are much lower, at rates of N 250 to N 350 per hectare. In Ondo State, forest reserves are classified according to yield and the unit area charges vary between N 220 and N 420 per hectare. These rates are in addition to payments made to cover the cost of reforestation (the reforestation levy), which are fixed at N 30 per hectare.
Higher returns and reduced incidence of fraud can be obtained with this method of sale, but this requires the availability of reliable management information and an efficient work force.
Table 11 Trends in unit area charges (per hectare) in Ekiti State Forest Reserves
Forest reserve |
Year |
|||||||||
1996 |
1997 |
1998 |
1999 |
2000 |
||||||
Naira |
US $ |
Naira |
US $ |
Naira |
US $ |
Naira |
US $ |
Naira |
US $ |
|
Ikere |
2,500 |
30.30 |
2,500 |
29.76 |
3,500 |
38.89 |
3,700 |
35.24 |
3,700 |
32.74 |
Ogbese |
2,500 |
30.30 |
2,500 |
29.76 |
3,500 |
38.89 |
3,700 |
35.24 |
3,700 |
32.74 |
Ogotun |
2,500 |
30.30 |
2,500 |
29.76 |
3,500 |
38.89 |
3,800 |
36.19 |
3,800 |
33.28 |
Ise |
2,500 |
30.30 |
2,500 |
29.76 |
4,000 |
44.44 |
4,200 |
40.00 |
4,200 |
37.17 |
Aramoko |
2,500 |
30.30 |
2,500 |
29.76 |
3,500 |
38.89 |
3,700 |
35.24 |
3,700 |
32.74 |
Little Ose |
2,500 |
30.30 |
2,500 |
29.76 |
3,500 |
38.89 |
3,700 |
35.24 |
3,700 |
32.74 |
Source: data collected from the field.
There has been a steady increase in charges based on unit area (see Table 11). For example, in Ikere Forest Reserve in Ekiti State, the charge was increased from N 2,500 per hectare to N 3,500 per hectare in 1998 and, again, to N 3,700 per hectare year in 1999. In the same way, the unit area charge has increased from N 2,500 per hectare in 1996 to N 4,200 per hectare in 2000 in Ise Forest Reserve. As Table 11 shows, the unit area charge also varies from one forest reserve to another within the State.
Highly forested states, such as Cross River State in particular, do not operate this system but rely more on the OTV and stumpage system of revenue collection.
Ground rent
In Ekiti and Ondo states, ground rents are paid annually for forest reserve allocation. This is N 200 per hectare per year in Ekiti State and N 150 per hectare per year in Ondo State.
Fees for the collection of fuelwood
In most of the southern states in Nigeria, fuelwood from urban and fuelwood plantations are sold in cords of 1.3 m x 1.3 m x 2.6 m, at prices between N 40 and N 50 per cord. Forest plantation thinning are also sold in cords. However, where fuelwood collection is allowed in areas used for pole and timber production, the collector usually pays a time-based charge. For example, in Oyo State a fuelwood collector pays N 120 per month to collect fuelwood. This monthly payment is fixed arbitrarily and does not take into account the quantity or quality of wood removed or the market value of fuelwood.
In Benue, N 100 is charged per lorry load of firewood removed, while in Kwara, N 1,500, N 500 and N 100 are charged per lorry load, cord and headload of fuelwood respectively.
The collection of branches, twigs and rejected logs as fuelwood after forest harvesting helps to prevent fire outbreak, reduces fire intensity and the impact of outbreaks of fire. Thus, the removal of debris as fuelwood is a useful forest management strategy.
Special Development Levy
The Special Development Levy is also called the afforestation fund levy or afforestation levy and is a fixed non-refundable charge on large concessions. This charge represents a contribution from forest concessionaires to the development of forest resources. Such levies were first introduced in the South West in 1968 and later in Edo and Delta States. The levy is paid once and for all as a form of ground rent or royalty and is usually paid before logging operations can commence.
The level of this levy is now N 800 per hectare in Ekiti State and N 650 per hectare in Ondo State and this charge is levied for the allocation of a forest concession in a forest reserve. In Edo and Delta states, the Special Development Levy is N 500 per compartment.
This levy is paid in addition to any application fees that are levied. For example, in Ekiti State, a non-refundable application fee is charged for applying for a forest concession. This fee is N 20,000 in forest reserves and N 50,000 in Teak and Gmelina plantations. In Ondo State, the application fees are: N 20,000 for forest reserves; N 30,000 for Gmelina plantations; and N 75,000 for Teak plantations.
Fees for industry licences and registering machinery
In some states in Nigeria, the owners of wood processing plants have to pay fees before they can install plants and, in addition, pay annual renewal fees for their plants. The major types of plants that are covered by such fees include: sawmills of various sizes; wood based panel mills; match and toothpick factories. In Lagos State, for example, the registration fee for a medium-sized sawmill is N 50,000, with a renewal fee of N 5,000 each year. In Ondo State, a fee of N 65,000 is charged for a similar-sized sawmill, with a renewal fee of N 20,000.
Table 12 Industry and enterprise fees in some Nigerian states in 2000 (in Naira)
Industry/enterprise type |
State |
||||
Ekiti |
Ondo |
Osun |
Ogun |
Lagos |
|
Small sawmill (Reg) Small sawmill (Ren) Application fee |
30,000 7,000 20,000 |
30,000 10,000 20,000 |
25,000 15,000 n.a. |
n.a. n.a. n.a. |
n.a. n.a. n.a. |
Medium sawmill (Reg) Medium sawmill (Ren) Application fee |
65,000 20,000 20,000 |
65,000 20,000 20,000 |
n.a. n.a. n.a. |
50,000 10,000 n.a. |
50,000 5,000 n.a. |
Large sawmill (Reg) Large sawmill (Ren) Application fee |
100,000 40,000 20,000 |
100,000 40,000 20,000 |
n.a. n.a. n.a. |
n.a. n.a. n.a. |
n.a. n.a. n.a. |
Planing machine (Reg) Planing machine (Ren) |
20,000 10,000 |
20,000 10,000 |
1,200 600 |
n.a. n.a. |
5,000 750 |
Multiple edger (Reg) Multiple edger (Ren) |
25,000 12,500 |
25,000 12,500 |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
Plywood or veneer mill (Reg) Plywood or veneer mill (Ren) |
100,000 50,000 |
100,000 50,000 |
n.a. n.a. |
n.a. n.a. |
50,000 35,000 |
Fibreboard mill (Reg) Fibreboard mill (Ren) |
100,000 50,000 |
100,000 50,000 |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
Particleboard mill (Reg) Particleboard mill (Ren) |
100,000 50,000 |
100,000 50,000 |
n.a. n.a. |
n.a. n.a. |
50,000 35,000 |
Circular resaw bench (Reg) Circular resaw bench (Ren) |
10,000 5,000 |
10,000 5,000 |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
Power chainsaw (Reg) Power chainsaw (Ren) |
10,000 3,000 |
10,000 4,000 |
1,000 500 |
1,000 1,000 |
500 250 |
Pulp and paper mill (Reg) Pulp and paper mill (Ren) |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
50,000 35,000 |
Match industry (Reg) Match industry (Ren) |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
10,000 5,000 |
Warehouse (Reg) Warehouse (Ren) |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
100,000 50,000 |
Wood drying kiln (Reg) Wood drying kiln (Ren) |
n.a. n.a. |
20,000 10,000 |
n.a. n.a. |
n.a. n.a. |
20,000 10,000 |
Wood treatment plant (Reg) Wood treatment plant (Ren) |
10,000 5,000 |
15,000 7,500 |
n.a. n.a. |
n.a. n.a. |
20,000 15,000 |
Property hammer (Reg) Property hammer (Ren) |
12,500 7,500 |
15,000 7,500 |
8,500 5,000 |
30,000 10,000 |
5,000 1,000 |
Company hammer (Reg) Company hammer (Ren) Application fee |
30,000 10,000 n.a. |
30,000 10,000 5,000 |
20,000 6,500 1,500 |
30,000 10,000 n.a. |
n.a. n.a. n.a. |
Circular saw <40cm (Reg) Circular saw <40cm (Ren) |
100,000 50,000 |
n.a. n.a. |
500 100 |
n.a. n.a. |
2,500 500 |
Circular saw >40cm (Reg) Circular saw >40cm (Ren) |
n.a. n.a. |
n.a. n.a. |
1,000 500 |
n.a. n.a. |
50,000 35,000 |
Large furniture industry (Reg) Large furniture industry (Ren) |
n.a. n.a. |
n.a. n.a. |
5,000 2,500 |
n.a. n.a. |
25,000 15,000 |
Medium furniture industry (Reg) Medium furniture industry (Ren) |
n.a. n.a. |
n.a. n.a. |
2,500 1,250 |
n.a. n.a. |
25,000 15,000 |
Small furniture industry (Reg) Small furniture industry (Ren) |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
15,000 10,000 |
Toothpick industry (Reg) Toothpick industry (Ren) |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
n.a. n.a. |
35,000 15,000 |
Relocation of machine |
n.a. |
n.a. |
n.a. |
n.a. |
10% of issue |
Notes: Reg = registration; Ren = renewal. Source: data collected from the field.
Information obtained from a few states in Nigeria is shown in Table 12. Information about trends in these charges over time is only available for a few states and a few items. For example, fees for registering large sawmills in Ekiti State rose from N 80,000 in 1996 to N 100,000 in 2000, while the renewal fee remained unchanged. Fees for registering other machinery and enterprises, such as: planing machines; multiple edgers; and particleboard mills, also remained constant during this period.