NLNG demands $315m judgment debt fron NIMASA

Management of Nigeria LNG has formally issued a demand notice for the sum of $315,598,823.29 judgment debt to the Nigerian Maritime Administration and Safety Agency (NIMASA). The sum represents the payments made under protest to the Agency by NLNG since 2013, as well as direct and shipping losses incurred byNLNG due to the initial two-day blockade of the Bonny Channel by NIMASA in May 2013.

The development followed the decision on October 3, 2017 by the Federal High Court, Lagos that NLNG was not liable to make the said payments toNIMASA, 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 blockading the Bonny Channel for the purpose of enforcing the payments against NLNG.

Commenting on the development, General Manager, External Relations, Dr Kudo Eresia-Eke said “The Federal High Court ruling transcends being simply a legal victory forNLNG. 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 per cent 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 NLNGdisputed.

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 blockade of the Channel. An Interim Injunction granted in favour ofNLNG by the Federal High Court was disobeyed by NIMASA, which again blockaded the Bonny Channel over a three week period while the matter was pending, thereby preventing NLNG vessels and other vessels doing business with the company from entry and exit through the Channel.