• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      Nigeria, Africa remittances on target as Wari, Lycaremit sign partnership

      January 21, 2021

      Companies

      Total Nigeria, Mixta, Valency, list new CPs on FMDQ platform to enhance financial markets development

      January 19, 2021

      Finance

      Amidst N32.22trn public debt, analysts say Nigeria’s external debt service manageable

      January 19, 2021

      Finance

      Stringent regulations, business environment forced Stanbic IBTC out of BDC business

      January 15, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Markets

      Nairobi Stock Exchange pushes expansion plans with more listings in 2021, says CEO

      < 1 min

      Africa Investment Forum

      Africa’s $60bn losses in illicit capital flows due to multinationals’ tax avoidance, says AfDB Adesina

      10 hrs

      Frontpage

      Covid-19 vaccine: Nigeria, 54 others to benefit from African Union’s 270m doses

      January 21, 2021

      Finance

      Nigeria, Africa remittances on target as Wari, Lycaremit sign partnership

      January 21, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Companies

      Appeal Court suspends order against shutting of SEPLAT headoffice

      < 1 min

      Frontpage

      OPEC welcomes push for electric vehicles, but says fossil fuel remains strong

      January 21, 2021

      National: Governance, Policy & Politics

      Nigeria ramps up domestic LPG consumption above 1MMT, says PPPRA

      January 20, 2021

      Companies

      TIPP Oil, German lubricant maker, targets 2021 Nigeria launch with eco-friendly scheme  

      January 19, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      CBN meeting and NSE in focus

      January 18, 2021

      Analyst Insight

      Once again, fiscal stimulus takes centre stage

      January 18, 2021

      Analyst Insight

      Organisations must learn from the WhatsApp story  

      January 18, 2021

      Analyst Insight

      Data privacy maturity model in organisations

      January 11, 2021

Frontpage

Nigeria LNG lost $475m to levies war with NIMASA, says court ruling vindicates long-held stance

October 3, 20171.3K views0 comments

Nigeria LNG Limited (NLNG), a liquefied natural gas-producing company has claimed that it lost about $475 million to a protracted war with Nigerian Maritime Administration and Security Management Agency (NIMASA) over applicable levies.

NIMASA had blocked the company’s export from Bonny Island for 22 days for refusing to pay levies demanded by it, a situation, according to Babs Omotowa, immediate past MD/CEO of NLNG, accounted for the $475 million loss.

A federal high court in Lagos Tuesday, however has ruled that NLNG Limited was right in its refusal to pay levies demanded by NIMASA.

NIMASA had said NLNG was 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, all of which NLNG disputed.

Read Also:

  • Appeal Court suspends order against shutting of SEPLAT headoffice
  • Nigeria: The WHEAT importation albatross
  • Nigeria ramps up domestic LPG consumption above 1MMT, says PPPRA
  • Reflections on interagency collaboration in security management in Nigeria
  • Nigeria equities go bearish on selloffs in DangCem, AXA Mansard, UBA

But delivering his judgment, M.B. Idris, a judge, said 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.

He said NIMASA was wrong in blocking the Bonny Channel for the purpose of enforcing the payments against NLNG.

Omotowa expressed delight over the ruling but said it would not restore the huge loss.

“Unfortunately, the victory will not restore NLNG’s $475 million loss arising from NIMASA’s blockade of its ships in 2013. 65 percent ($308.75 million) of this sum would have gone into the federal government’s purse in dividend and taxes,” he said.

“The blockade was the toughest and lowest period of my five-year tenure at the helm of Nigeria LNG Limited. It was indeed a very lonely and stressful period for Nigeria LNG Limited.”

In 2013, NLNG filed the case against NIMASA at the federal high court as it sought a judicial determination on the legality of levies imposed by NIMASA, and the blockade of the Bonny channel by NIMASA as a result of the dispute.

“An interim injunction granted in favour of NLNG by the federal high 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, thereby preventing NLNG vessels and other vessels doing business with the company, from entry and exit through the channel,” according to a statement by Kudo Eresia-Eke, NLNG’s general manager, external relations.

 The federal high court judgement reinforces NLNG’s position that by the provisions of the applicable laws, the company is not subject to payment to NIMASA of the 3% gross freight as well as the sea protection levy, and that the 2% cabotage levy is inapplicable because NLNG’s vessels are not involved in coastal trade or cabotag.

Share on Facebook Tweet Email
PreviousForeign investors flee South Africa equities market on political risk, rich valuations, weakening currency
NextNigeria generates N2.305trn half-year revenue, to release second tranche of capital budget this week

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Appeal Court suspends order against shutting of SEPLAT headoffice
  • Eko Atlantic City to utilise local content for economic diversification in Nigeria
  • Nairobi Stock Exchange pushes expansion plans with more listings in 2021, says CEO
  • Africa’s $60bn losses in illicit capital flows due to multinationals’ tax avoidance, says AfDB Adesina
  • Nigeria equities go bearish on selloffs in DangCem, AXA Mansard, UBA

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Nigeria interbank rates to moderate as N130.3bn maturing bills hit the system

Frontpage October 3, 2017

1
2

Nigerian smaller banks more at risk on growing NPL levels as some lenders record lower capital ratios

Frontpage September 4, 2017

3

Forbes names Jeff Bezos, Amazon CEO, world’s richest man as billionaire club collectively own $9.1trn fortune

Frontpage March 6, 2018

4

Nigerian stocks end week positive, record 1.38% gain w-o-w

Frontpage September 22, 2017

5

AfDB’s $3bn buffer social bond set against COVID-19 

Coronavirus March 31, 2020

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.