Appeal court okays NIMASA levies on NLNG
Admin l Friday, March 29, 2019
LAGOS, Nigeria – An Appeal Court sitting in Lagos today okayed existing taxes levied by Nigerian Maritime Administration and Safety Agency (NIMASA) on Nigeria Liquefied Natural Gas(NLNG).
A Federal High Court sitting in Lagos had declared the levies. But at the Appeal, the 3-man justice were unanimous in declaring in affirming that NIMASA was right in imposes the levies on NLNG. Justice Lawal Garuba, agreed with by Justice Abimbola Obaseki-Adejumo and Justice Gabriel Kolawole, in dismissing the judgment of the lower court, adding that there was no fair hearing at the lower court.
The Appeal Court also ordered that the matter be taken back to the Federal High Court and be reassigned to another judge for retrial. Commenting on today’s judgment, counsel to NIMASA, Fagbemi Lateef said: “the effect of today’s judgment was that Federal High Court, was wrong on the processes with which it arrived at its judgment.
“Appeal Court held that its breached the fundamental rights of fair hearing of the appellant. That’s is why the Appeal Court ordered that the case file should be taken back to the lower court for retrial”.
A Federal High Court, Lagos, presided over by Justice Muhammed Idris, who has been elevated to Court of Appeal, had on October 3, 2017, while delivering judgment in a suit filed by NLNG against NIMASA held that NLNG, was not liable to pay three percent gross freight on its international inbound and outbound cargo, Sea Protection Levy, two percent cabotage surcharge on all activities carried out for and on its behalf, as well as other sundry claims, as insisted by NIMASA.
Justice Idris also held that NLNG was not liable to make the said payments to NIMASA and that all payments already made by NLNG to NIMASA should be refunded to NLNG forthwith. The judge further held that NIMASA was wrong in blockading the Bonny Channel for the purpose of enforcing the payments against NLNG. Dissatisfied with Justice Idris’ decisions, NIMASA filed an appeal before the Appeal Court challenging the judgment on the the ground fair hearing among others.
In 2013, NLNG approached the Federal High Curt, seeking a judicial determination of among other things, the legality or otherwise of the levies sought to be imposed on it 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 court was disobeyed by NIMASA, which again effected a blockade of the Bonny Channel for over a three week period whilst the matter was pending. NIMASA had filed a counterclaim, restating its supposed entitlement to receive payment of the levies from NLNG.
