NLNG export tax fight goes on

The Court of Appeal in Lagos on Monday upheld a preliminary objection by Nigeria LNG and dismissed an appeal filed by Global West Vessel Specialist, challenging an earlier Federal High Court decision to continue a substantive suit over the blockade of NLNG’s jetty in Bonny, from where the company exports cargoes of LNG and allied products.

In a lead judgment delivered by  Justice Rita Nosakhare Pemu, with which the other Justices that heard the appeal concurred, the Appeal Court ruled that the Notice of Appeal filed by Global West was “incompetent” as contended by NLNG, having been filed without leave either of the Federal High Court or the Court of Appeal.

The ruling affirms a previous one by the Federal High Court in Lagos dismissing Global West’s Notice of Preliminary Objection against a substantive suit by NLNG on the ground that Global West was a proper party to the suit.

Following the refusal by the Federal High Court, Global West then proceeded to the Appellate Court to set aside the decision and stay proceedings at the lower Court pending the determination of the appeal.

Nigeria LNG filed last year a case at the Federal High Court against the Attorney General of the Federation and Global West, seeking a judicial determination on, among other things, the legality or otherwise of certain levies sought to be imposed on NLNG by Nigerian Maritime Administration and Safety Agency (NIMASA), an agency of the Federal Government and the consequent blockade of NLNG vessels by NIMASA and Global West as a result of the dispute.

Press Release, August 13, 2014; Image: NLNG