NLNG Demands N101bn Judgment Debt from NIMASA…

The management of Nigeria LNG has issued a demand notice for the sum of $315,598,823.29 (N101 billion) judgment debt to the Nigerian Maritime Administration and Safety Agency (NIMASA).

The sum, the company said, represented the payments made under protest to the agency by NLNG since 2013 as well as direct and shipping losses incurred by NLNG due to the initial two-day blockade of the Bonny Channel by NIMASA in May 2013.

In a statement issued yesterday, NLNG said the development followed the decision on October 3, 2017, by the Federal High Court in Lagos 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 forthwith.

“The court presided over by Justice M. B. Idris further held that NIMASA was wrong in blocking the Bonny Channel for the purpose of enforcing the payments against NLNG,” the statement said.

Commenting on the development, the General Manager External Relations, Dr. Kudo Eresia-Eke, said: “The Federal High Court ruling transcends being simply a legal victory for NLNG. It must be viewed for what it really is-a resounding message from Nigeria to the global investment community. The message is that we can be trusted to keep our sovereign word and that Nigeria remains open for business, partnership and investments.”

NIMASA had alleged that NLNG was liable to pay three percent gross freight levy on its international inbound and outbound cargo, sea protection levy, two per cent cabotage surcharge as well as other sundry claims, all of which NLNG disputed.

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 agent as a result of the dispute.

NLNG had also sought a court order restraining NIMASA from further blocking the channel. An Interim injunction granted in favour of NLNG by the Federal High Court was disobeyed by NIMASA, which again blockaded the Bonny Channel over a three-week period while the matter was still pending, thereby preventing NLNG vessels and other vessels doing business with the Company from entry and exit through the channel.