NLNG Floors NIMASA Over Statutory Levies

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The dispute between the Nigeria Liquified Natural Gas Limited (NLNG) and the Nigerian Maritime Administration and Safety Agency (NIMASA) over collection of levies seemed to have been settled by court.

A Federal High Court sitting in Lagos yesterday delivered judgment in favour of Nigeria Liquefied Natural Gas Limited in a case against Nigerian Maritime Administration and Safety Agency over applicability of such levies.

NLNG General Manager, External Relations Kudo Eresia-Eke said this yesterday in a statement.

Eresia-Eke said NIMASA 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 his judgment, 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.

Justice Idris said NIMASA was wrong in blockading the Bonny Channel for the purpose of enforcing the payments against NLNG.

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.

NLNG had also 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 effected a blockade of the Bonny Channel for over a three-week period while the matter was pending.

The action prevented NLNG vessels and other vessels doing business with the company from gaining entry and exit through the channel.

NIMASA filed a counterclaim, restating its entitlement to receive payment of the levies from NLNG.

However, the Federal High Court judgment reinforces NLNG’s position that by the provisions of the applicable laws, the company was not subject to payment to NIMASA of the three per cent gross freight as well as the Sea Protection Levy.

It said the two per cent Cabotage Levy was inapplicable because NLNG’s vessels are not involved in coastal trade or cabotage. This decision also affirmed the sanctity of the guarantees and assurances conferred on the company and its shareholders by the Federal Government, on the strength of which the shareholders made their investments from which the country has reaped immense returns.

NLNG said as a law-abiding company and a good corporate citizen, it was committed to conducting its business in accordance with the laws.


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