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NLNG Agrees To Make Peace With NIMASA

The Nigerian Liquefied and Natural Gas (NLNG) Limited has begun moves to amicably settle the dispute between it and the Nigerian Maritime Administration and Safety … Continue reading NLNG Agrees To Make Peace With NIMASA


The Nigerian Liquefied and Natural Gas (NLNG) Limited has begun moves to amicably settle the dispute between it and the Nigerian Maritime Administration and Safety Agency (NIMASA).

The two government agencies have been locked in a fierce battle over the issue of non-payment of certain statutory levies and charges which NIMASA claims are due to them from NLNG.

Justice Mohammed Idris of the Federal High Court in Lagos had on June 18, 2013 granted an exparte order to NLNG in the suit it filed against the Attorney General of the Federation and Global West Vessels Specialists. NIMASA was not a party to the proceedings.

The exparte order restrains the defendants from charging, imposing, demanding or collecting the 3% gross freight earnings or any other sums from the NLNG further to section 15(a) of NIMASA Act 2007 on all of NLNG’s international inbound or outbound cargo ships owned, contracted or subcontracted by it.

However, the exparte order was violated when NIMASA detained some NLNG vessels on the 21st of June, a situation which made NLNG file contempt proceedings against the defendants.

NIMASA through its lawyer, Mike Igbokwe filed an application seeking the setting aside of the contempt proceedings filed against it by NLNG for not complying with the courts order.

NIMASA said it was not a party to the suit because it was not properly served and the court had no jurisdiction to decide the suit as the contempt proceedings were an abuse of court process.

The Federal Government, through its lawyer, Fabian Ajogwu, also filed an application asking the court to discharge the ex-parte order of interim injunction against it on the grounds that the order was essentially made against NIMASA, which was not joined as party to the suit.

Global West Vessel Specialists on its part filed an application through its lawyer, Abiodun Owonikoko seeking that the company be struck out from the suit on the grounds that the suit discloses no legal right and cause of action against it. The company also submitted the court lacked jurisdiction to determine the suit and that the notice of contempt proceedings against it was not addressed to any named person in accordance with the law.

Counsel to NLNG, Wale Akoni (SAN) has however told the court that his client was working on a proposed order to be entered as consent judgment of the court.

He urged the court to grant him a short adjournment.

NIMASA’s lawyer, Mike Igbokwe clarified that it was NLNG’s shareholders that were in the process of agreeing on the terms to be presented to the court.

He also said that he would reluctantly concede to an adjournment, but insisted that he would go on with his applications, should the settlement talks yield no favourable result.

Justice Idris fixed July 5 (Friday) for report of settlement failing which counsel to NLNG also says it will go on with its contempt proceedings.