The
Federal High Court sitting in Lagos, Tuesday delivered a landmark judgment in favour of
Nigeria LNG Limited (NLNG) in a case between the company and the Nigerian
Maritime Administration and Safety Agency (NIMASA) over applicability of NIMASA
levies, reports ITRealms.
NIMASA, ITRealms gathered had alleged that NLNG was liable to pay three per cent gross freight on its international inbound and outbound
cargo, Sea Protection Levy, two per cent cabotage surcharge on all activities
carried out for and on its behalf, as well as other sundry claims, all of which NLNG disputed.
In
a landmark judgment in Lagos, Hon. Justice M.B. Idris held inter alia, that NLNG was not liable to make the said payments to
NIMASA, and that all such payments already made by NLNG to NIMASA should be
refunded to NLNG forthwith. Hon. Justice Idris further held that NIMASA was
wrong in blockading the Bonny Channel for the purpose of enforcing the payments
against NLNG.
ITRealms reports that NLNG, in 2013, filed the case at the Federal High Court against
NIMASA, seeking a judicial determination on, among other things, the legality
or otherwise of the levies sought to be imposed on NLNG by NIMASA, and the
consequent blockade of the Bonny Channel by NIMASA and its agents as a result
of the dispute.
Also, ITRealms reports that NLNG had sought a Court Order restraining NIMASA from
further blockade of the Channel. An Interim Injunction granted in favour of
NLNG by the Federal High Court was disobeyed by NIMASA, which again affected a blockade
of the Bonny Channel for over a three week period whilst the matter was
pending, thereby preventing NLNG vessels and other vessels doing business with
the company, from entry and exit through the Channel.
NIMASA
had filed a Counterclaim restating its supposed entitlement to receive payment
of the levies from NLNG. However, the Federal High Court judgement reinforces NLNG’s
position that by the provisions of the applicable laws, the Company is not subject to payment to NIMASA of the three
percent gross freight as well as the Sea Protection Levy, and that the two percent Cabotage Levy is
inapplicable because NLNG’s LNG vessels are not involved in coastal trade or
cabotage. This decision also affirms the
sanctity of the guarantees and assurances conferred on the Company and its
Shareholders by the Government of the Federal Republic of Nigeria, on the
strength of which the Shareholders made their investments from which the
country has reaped immense returns.
Responding
to the judgement, the General Manager, External Relations at NLNG, Mr Kudo
Eresia-Eke, asserted that NLNG as a law abiding company and a good corporate
citizen remains committed to conducting its businesses in accordance with the
laws of the Federal Republic of Nigeria.
Chuks Egbune/GEE
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