The Court of Appeal, Lagos Division, on Friday set aside the judgment of a Federal High Court which held that the Nigeria Liquefied Natural Gas Ltd. (NLNG) was right in refusing to pay levies imposed by the Nigerian Maritime Administration and Security Agency (NIMASA).
The appellate court set aside the lower court’s judgment and ordered that the case file be sent back for a re-assignment.
The dispute between both parties arose as a result of perceived conflicts in their respective enabling laws.
NIMASA had said that its levies were applicable to NLNG, while the latter argued that it was exempted from such levies and charges by virtue of the NLNG Act.
NLNG had filed a suit before the Federal High Court Lagos in 2013, seeking judicial determination on the legality of the levies sought by NIMASA.
NIMASA, had in response, filed a counter-claim, saying it was entitled to the levies.
In the lower court’s judgment, delivered by Justice Mohammed Idris in October 2017, the court held that NLNG was not liable to make the said payments to NIMASA.
The judge, therefore, ordered that all such payments already made by NLNG to NIMASA be refunded.
The court had also ruled that NIMASA was wrong in blocking the Bonny Channel for the purpose of enforcing the payments against NLNG.
Dissatisfied with the judgment of the lower court, NIMASA filed an appeal on Oct 19, 2017, urging the appellate court to set aside the lower court’s verdict.
In its judgment read by Justice Joseph Ikyegh, the appellate court held: “The appeal is allowed, and the judgment delivered by the lowered court in October 2017 is hereby set aside.
‘The case is hereby ordered to be sent back to the administrative judge of the Lagos Division of the lower court to be assigned to a judge for expeditious determination on its merit.
‘Parties are to bear the administrative cost of the appeal.”
Justices Garba Lawal and Gabriel Ominiyi agreed with the verdict.
In its suit, NIMASA avers that the NLNG is liable to pay three per cent gross freight on its international in-bound and out-bound cargo as sea protection levy.
It also claims NLNG is to pay two per cent Cabotage surcharge on all activities carried out for and on its behalf as well as other sundry claims.
All of these claims were, however, disputed by the NLNG which sought a court’s determination of the legality of levies as well as the blockade of the Bonny Channel as a result of the dispute.
The NLNG claims it lost about 475 million dollars while NIMASA blocked Bonny Channel.