Nigerian Newspapers
NIMASA vs NLNG: War without end
The lingering crisis involving the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Liquefied Natural Gas (NLNG) could damage the country’s economic interests, reports Ibrahim Apekhade Yusuf
“No Agreement Today. No Agreement Tomorrow. No Agreement Now. Never! Never! Never! No Agreement Never…”
The lyrics above, created by the inimitable Afrobeat legend, Fela Anikulapo Kuti, perhaps captures the difficulty in reaching a resolution of the current dispute between the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Liquefied Natural Gas (NLNG) over whether or not the latter ought to pay 2 % cabotage surcharge, sea protection levy, 3 % freight levies for shipping undertaken by Bonny Gas Limited, a subsidiary of NLNG, whose conservative estimates is valued at over $ 400million to NIMASA from September 2007 till date.
NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%), Shell Gas BV, SGBV, (25.6%), Total LNG Nigeria Limited (15%), and Eni International (N.A,) N. V. S. a. r. l (10.4%).
Renewed hostilities
Though the crisis between NIMASA and NLNG has been festering for some time, it appears to have come full circle in the last few months.
Recall that on 3rd May 2013, NIMASA blocked the Bonny Channel preventing entry and exit of NLNG vessels, a development which led to series of meetings at the instance of the Federal Government which eventually ordered that the company should pay NIMASA its purported levies.
Even as the dust was yet to settle, just last week, NIMASA detained the three vessels belonging to the NLNG due to what it described as the latter’s failure to pay levies due to the Nigerian government.Justifying the Agency’s action in a statement signed by the Deputy Director, Public Affairs, NIMASA, Isichei Osamgbi, which reads in part, he said, “The Nigerian Maritime Administration and Safety Agency (NIMASA), has today (last weekend) in its enforcement of Nigerian laws, served detention notices/orders on vessels belonging to/chartered by the Nigerian Liquefied Natural Gas Company Limited (NLNG).
“This course of action was forced on NIMASA by the NLNG’s subsequent refusal or/and failure to abide by the outcome of the negotiated settlement arrived at through the mediation process it willingly instigated and subscribed to after reaching agreement with NIMASA on its outstanding debt and paying $ 20m out of it and its continued flagrant disregard for Nigerian laws.
“By its action, the NLNG has trivialised the mediation process and the position of the Federal Government of Nigeria whose Nigerian National Petroleum Corporation owns and holds 49 per cent of the shares in NLNG and which endorsed the agreement reached that NLNG should pay its taxes/levies and observe all its obligations under the laws of Nigeria in which it is operating.”
While giving an account of what led to last week’s blockade, Dr. Kudo Eresia-Eke, General Manager, External Relations, NLNG, recalled that: “Two Nigerian Maritime Administration and Safety Agency (NIMASA) boats, with 15 naval officers on board, ordered that one NLNG vessel, LNG Imo, and one chartered vessel, Torm Thames, remain at NLNG’s loading bay, whilst another NLNG Vessel, LNG Oyo, remains outside the Bonny Channel until further notice.”
Speaking exclusively with The Nation, as to why NIMASA issued detention orders on NLNG Vessels namely: LNG Enugu, Oyo and Imo respectively, the NLNG, through its spokesman, Eresia-Eke, “They (NIMASA) would know better. What we know is that a court injunction was served on them prior.”
On possible cost implications of detaining the NLNG vessels, the company said: “When the blockade is over we can then give you a reliable figure. But a certain loss is of the reputation of the country, and the implications of that for foreign investment flow into Nigeria.”
While commenting on insinuations that the Attorney General of the Federation/Minister of Justice, Mohammed Adoke had allegedly sought an out-of-court settlement for NIMASA/NLNG, the NLNG argued that: “The matter is in court necessarily, in need of judicial interpretation given apparent conflict of two Acts- the NLNG ACT, and the NIMASA ACT.”
The N3.2 billion, the company paid, Eresia-Eke insisted, “was part payment, made in protest clearly, but in deference to the Federal Government that directed payment, while going to court to seek a proper interpretation.”
He was however quick to add that: “We intend to follow the court processes, in line with the rule of law, until the matter is resolved.”
The Nation can authoritatively report that there appears to be no love lost between the parties in the dispute considering the fact that they are both lock in fierce legal battles of their lives.
Already, the NLNG has filed a suit against the AGF and Global Star, but never joined NIMASA in the suit, a development seen by legal analysts, as a technical flaw.
NIMASA Act says the agency requires at least one month notice to be joined in a suit, and this according to experts, has created a leeway for it.
Echoing similar sentiments, Mike Igbokwe (SAN) in a statement noted that NIMASA was not joined in the suite as such was not technically liable.
Crux of the matter
But how did things came to this sorry past? An innocuous question no doubt, but with no ready answers.
At issue is that the protracted dispute between both parties is as a result of perceived conflict in the enabling Acts of both organisations, namely the Nigeria LNG (Fiscal Incentives, Guarantees and Assurances) Act on one hand and Nigerian Maritime Administration and Safety Agency Act, Merchant Shipping Act and Coastal and Inland Shipping Act on the other hand.
NIMASA holds the view and very strongly too that its levies were applicable to NLNG, while the latter argued that they were exempted from such levies and charges by virtue of the NLNG Act.
It would be recalled that NIMASA had filed a suit against NLNG in 2010 claiming entitlement to these levies. Following preliminary proceedings, NIMASA filed an application to withdraw the suit, and on 3rd May 2013.
But in a volte face, NIMASA had reportedly resorted to self-help by blocking NLNG vessels from entering the Bonny Channel for days.
History of controversy
Investigation by The Nation revealed that the controversy over payment of cabotage and freight levies first came to the fore under the administration of Dr. Ade Dosunmu, who as the DG made all entreaties to NLNG to pay up to no avail.
His predecessor, Temisan Omatseye, who took over the case, was desirous of amicable resolution of the impasse such that he sought a judicial review of the NLNG Act at the court but may have stepped on toes in the process and that reportedly led to his exit as DG and he been on suspension in the last two years, sources said.
Findings by The Nation revealed that the matter hitherto under Justice Nyako of the Federal High Court, and later before Justice Rita Ofili-Ajumogobia of the Federal High Court, Lagos, was reportedly withdrawn.
The Nation reliably gathered from informed sources that the AGF who seemed not comfortable with the turn of events, had issued a directive to the management of NIMASA to have the case withdrawn without further delay in order to settle out of court.Informed sources further told The Nation that the AGF had made frantic moves to have the matter withdrawn in court by the NIMASA management under the former DG, Omatseye, since 2010 but could not have his way because the then management insisted that he had to follow the due process.
The Nation had reported exclusively that parties to the dispute in the instance of the Attorney General of the Federation and Minister for Justice, Mr. Mohammed Adoke (SAN) had sought an out of court settlement.
The litigation between the NLNG and NIMASA had been ongoing in the past few years. The Nation gathered that the NLNG management under the former Managing Director, Chima Ibeneche, had asked NIMASA to go to court to contest the NLNG Act, which granted the NLNG and its contractors a tax holiday and several other incentives.
However, following discussions with NIMASA and NLNG, both parties had agreed that the latter should carry out some projects in lieu of payment.
The communiqué issued at the end of the parley in 2009 tagged: “Proposal on Projects that will Assist the Development of the Safety Administration in Nigeria”, addressed 14 critical areas of need namely: purchase of two number surveillance helicopters at the cost of $ 18.0million; four number pollution monitoring, control boats at $ 20.0m; five number defender, bullet proof patrol boats at $ 30.90m; two number offshore patrol boats with fire fighting capability at $ 30.0m; funding of PICOMMS projects at $ 26.0m.
Besides, it was agreed that a sensitivity atlas mapping/charting of the Nigerian coastline would be embarked upon at the cost of $ 25.0m, as well as dredging/reinforcement of the jetties in Kirikiri channel, Pathfinder in Port Harcourt and Warri, in Delta state, just as mobile search and rescue clinic was going to take $ 5.0m.
However, following renewed negotiations, the parties couldn’t reach a consensus on the means and ways to implement the terms of the proposal.
Outsiders’ perspective
Mr. Peter Sunday Adebola, Managing Director, BGL Securities Limited, who has been following the issue had this to say.
Speaking exclusively with The Nation over the weekend, he said: “Without taking sides with either of the parties, one thing I know is that whatever the situation, companies must not evade taxes and the regulation should be in such a way that it is not ambiguous because most of our laws are full of ambiguity that you need somebody to come and interpret at one time or the other.
“It should be made very easy for people to understand. Unlike in the advanced economies, ordinary school leavers understand what the law is all about. But our own, you may even need somebody to interpret the laws for you to be able to understand. I think what is pertinent is that the regulatory framework should be easy and simple so that the partners in the Joint Venture Agreement will not do something in such a way that they are not going to circumvent the laws.”
Giving a legal perspective to the issue, a maritime lawyer, who would not be named and who has been following the developments argued that the AGF cannot form a committee to adjudicate on the crisis between the NLNG and NIMASA because they are both legal entities which can be sued.
“The AGF cannot adjudicate in the matter. It is the court that can adjudicate and nothing else. I think I sense a lot of mischief in the air. Without prejudice to what is happening right now, I think NIMASA appears to be in hurry,” the source said.
Expatiating, he said: “The question to ask is who is pushing NIMASA? It is true that the agency is in some form of financial crisis? The AGF can only step in if the case involves the Federal Government. “It was wrong for the AGF to have sought to broker truce knowing full well that the solution lies with the court.”
The company, the source informed, “May have no choice but to declare a force majeure and this will not augur well for the country.”
Implication on the economy
In the view of analyst, the potential implications of the current impasse between NIMASA and NLNG have dire consequences on the economy as well as the nation’s reputation in the international community.
The NLNG is reported to contribute at least 4 % of the country’s GDP. From available information, the agency stands to make at least $ 5million monthly from NLNG.
Raising a poser, the BGL boss said: “Do you know the amount of income that government is losing from all these other arrangements?”
Government, he emphasised, “Is losing a lot because you can see that there are leakages and people want to take advantage of that. So, the faster the issue is resolved, the better for the country.”
Way forward
In the contention of experts, one of the lasting solutions to this kind of issue is full automation of payment system.
The BGL boss shares the same sentiments. “Once the system is digitalised, you won’t even need to negotiate with anybody. Once the system is automated, there will be no need for dispute arising over payments of dues because the template will be available for anybody to see. That’s the way it is done elsewhere,” Adebola stressed.
Continuing, he said, “Just like the banks now, they will tell you, you’ll pay N3 COT for every N1, 000. At the end of the month, if you check your statement, it would have been generated electronically. With such a template, banks don’t need to explain anything to anybody because it is the operating template in the bank which you as a customer have to key into.”
But a lawyer and also a member of the Rule of Law Development Foundation, led by Joseph Dauda, who asked not to be named, said the only solution is for the court to adjudicate, this, he argued, is a quicker and better way to resolve the lingering impasse.
Pray, is someone listening?
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Posted in Nigerian Newspapers. A DisNaija.Com network.
Source: The Nation Newspaper
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Nigeria records 55 new COVID-19 infections, total now 165,110
The Nigeria Centre for Disease Control (NCDC) has recorded 62 new cases of COVID-19, bringing the total number of infections in the country to 165,110. The NCDC disclosed this on its official Twitter handle on Friday. “55 new cases of #COVID19Nigeria; Lagos-21, Yobe-19, Ogun-6, Akwa Ibom-3, Kaduna-2, Plateau-2, FCT-1, Rivers-1.” YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE COVID-19: Nigeria Recorded […]
Nigeria records 55 new COVID-19 infections, total now 165,110
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•Deploy more personnel as army chief vows to wipe out terror group
•Security beefed up at N’Assembly
Deji Elumoye and Kingsley Nwezeh in Abuja
Abuja, Nigeria’s seat of power, is under a massive security cordon following threats of attacks by insurgents and the increasing wave of banditry in the contiguous states of Kaduna, Kogi, Nasarawa and Niger States, THISDAY’s investigation has revealed.
There has been a wave of kidnappings in the outskirts of the federal capital, notably Pegi, Tuganmaje and Kuje among others, which the police have battled in recent times.
The security situation in and around the Federal Capital Territory (FCT) was heightened by the pronouncement of the Niger State Governor, Mr. Sani Bello, that Boko Haram fighters who he said sacked 50 villages in the state and hoisted the terror group’s flag, were about two hours drive away from the FCT.
Security has also been beefed up at the National Assembly as operatives, yesterday, thoroughly screened every vehicle approaching the National Assembly complex in Abuja.
The deteriorating security situation nationwide prompted the National Chairman of the Peoples Democratic Party (PDP), Prince Uche Secondus, to warn that the 2023 general election may not hold, demanding the declaration of a state of emergency as well as the convocation of a national conference.
However, the Chief of Army Staff, Lt. Gen. Ibrahim Attahiru, yesterday restated the Nigerian Army’s determination to annihilate Boko Haram.
But the Governor of Katsina State, Hon. Bello Masari, cautioned against declaring a state of emergency, saying doing so isn’t the solution to combat the security challenges facing the country.
The security of the nation’s airports was also in focus yesterday as the Office of the National Security Adviser (ONSA) said there was no threat to them.
THISDAY’s investigations showed increased presence of troops, police, Nigerian Security and Civil Defence Corps (NSCDC) personnel and intelligence operatives at the three strategic entrances to the city notably, Keffi, Zuba and Gwagwalada.
More checkpoints were also mounted around Gwagwalada and Keffi.
THISDAY also observed increased intelligence deployment at the entrance and the borders of FCT with contiguous states.
Beyond the borders, there were more deployments and police patrols inside the city and increased intelligence deployments as well.
Security sources told THISDAY: “There are deployments here and there but they are routine. Alertness is key to a secure environment.”
It was also learnt that security agencies were involved in frenzied meetings throughout yesterday.
The meetings, coordinated by the office of the Chief of Defence Staff under the new joint operational strategy of the armed forces, were aimed at coordinating a joint response to possible threats of attack to the FCT.
“I understand the security teams have been meeting for some days now and if you look around you, you will notice that there are increasing patrols and numbers of security personnel. The threats are not been taken lightly,” a source said.
National Assembly workers, lawmakers and visitors also had a harrowing experience accessing the legislative complex due to heightened security in the area.
Security operatives thoroughly screened every vehicle approaching the National Assembly complex in Abuja, impeding both human and vehicular traffic.
The Sergeant-at-arm of the National Assembly and other security agencies supervised the operations, leading to huge traffic build-up inside the complex.
Legislative staff, visitors and lawmakers were seen patiently waiting for their cars to be searched so that they could go ahead with the business of the day.
Some staff and visitors at some point got tired of waiting and were seen alighting from their cars to trek from the gate to the complex.
Meanwhile, the ONSA has said there is no threat to the nation’s airports.
A statement by the Head of Strategic Communication, Mr. Zachari Usman, said the reports of threats to the airports were an internal correspondence of security threat assessment misconstrued as security threat to the airports.
PDP Demands State of Emergency
In a related development, the PDP National Chairman, Prince Uche Secondus, yesterday demanded the declaration of a state of emergency, warning that the 2023 general election might not hold if the federal government failed to tackle insecurity.
He called on the federal government to summon a national conference to address the spike in insecurity.
Secondus added that the national caucus of the party will meet today to discuss the state of the nation.
Addressing members of the National Executive Committee (NEC) in Abuja, Secondus said: “We are worried Abuja is not even safe. It is no longer politics. We got alert of plots to bomb and burn down our airports.
“We urge the federal government to declare a national state of emergency in security. There is the need to call a national conference to discuss the insecurity in the country.
“There may not be any election in 2023 in Nigeria due to insecurity. This government must listen to the people. The Buhari government should call a national confab to discuss security and state of the nation. It is no longer politics. This time we are not playing politics. Let’s keep politics aside and move the nation forward.”
He said the country had been grounded, regretting that there had been no matching response from the federal government.
Secondus said in the past, terrorism in the North was confined to the North-east, but with the report of Boko Haram occupying villages in Niger State, terrorism had spread to the North-central
“Herdsmen are also menacing in the West; gunmen causing havoc in the East; and the militants in the South; all killing, looting, raping, maiming and burning down homes. The situation is bad; Nigerians all over are living in fear,” he said.
The Senate Minority Leader, Senator Enyinnaya Abaribe, said the problem of Nigeria was outside of the PDP headquarters, while pledging the support of the Senate to the declaration of state of emergency in security.
Abaribe said he deliberately decided not to speak on the floor of the Senate but to allow the APC senators to speak so as to avoid being accused of giving a partisan colouration to the issue of insecurity.
He stated that only electoral reforms would give victory to the opposition party in the 2023 general election and ensure a democratic defeat of the APC-led federal government.
Also, the Minority Leader of the House of Representatives, Hon. Ndudi Elumelu, commended the NEC and the PDP leadership for their collective efforts at resolving the House leadership crisis.
The NEC meeting adopted the position of Secondus, calling on the federal government to convoke a national conference to discuss the state of insecurity in the country, according to a communiqué read by the National Publicity Secretary, Mr. Kola Ologbondiyan.
Army Chief Vows to Wipe Out Boko Haram
The army yesterday reiterated its commitment to wipe out Boko Haram.
Chief of Army Staff (COAS), Lt. Gen. Ibrahim Attahiru, told reporters in Maiduguri, Borno State that Boko Haram had been defeated in many encounters and would continue to be defeated until it’s annihilated from Nigeria.
“We will take on Boko Haram decisively, and we are committed to the focus of the operations, which is the total annihilation of Boko Haram from Nigeria,” he said.
The COAS, who was visiting the headquarters of Operation Lafiya Dole in Maiduguri for the fifth time since his appointment four months ago, said the visit was to boost the morale of the troops, reassure them and listen to any issues affecting them.
Earlier, the Theatre Commander of Operation Lafiya Dole, Maj. Gen. Farouq Yahaya, lauded the visit, which he said had continued to boost the morale of the troops.
“We are honoured, we are grateful, we are encouraged by those visits. You provided us guidance, logistics and other things we required. We are most grateful for those visits,” Yahaya said.
State of Emergency Won’t Solve Security Challenges, Says Masari
Katsina State Governor, Hon. Aminu Masari, has, however, said declaration of a state of emergency won’t solve the security challenges facing the nation.
Masari, who spoke yesterday with journalists after meeting with the Chief of Staff to the President, Prof. Ibrahim Gambari at the State House, Abuja stated that he was against the recent call by the House of Representatives for the declaration of a state of emergency in the security sector as it would not solve the problem.
According to him, declaring a state of emergency will not achieve the desired effect as the security structure and personnel to be used to execute the emergency are already overstretched in a bid to safeguard lives and property.
Sourced From: THISDAYLIVE
The government said that no worker should stay back beyond 6:00 p.m. within premises of buildings undergoing construction.
The post Insecurity: Lagos bans occupation of abandoned buildings appeared first on Premium Times Nigeria.
Sourced From: Premium Times Nigeria
By Olasunkanmi Akoni
The people of the South East region have been urged to explore the power of negotiation and mutual settlement in the face of ongoing killings and security challenges in the zone because the east can not afford another war at present.
Stakeholders from the South-East geo-political zone made the remark on Thursday, at the unveiling of the book, “Igbo, 50 years after Biafra,” written by Special Adviser to Lagos State Governor Babajide Sanwo-Olu on Drainage Services, Joe Igbokwe, held at Ikeja G.R.A.
Speaking at the unveiling of the book, the chairman of the occasion, Mr. Cutis Adigba,
urged the people of the South-East to learn to build bridges across the country, so that they can realise their ambition of producing the next president of Nigeria.
Adigba urged leaders from the zone to discourage the move and agitation by some youths in the South East to go to war and secede out of Nigeria.
Also read: Banditry: Disregard viral video, Niger State gov’t urges residents
He said that Igbo have always found it difficult to rule Nigeria because they refused to build bridges across the six geo-political zones that made up Nigeria.
While describing the agitation as uncalled for, Adigba noted that after two decades that Nigeria returned to civil rule, the Igbo has predominantly identified with only one political party.
He maintained that remaining in one party can not advance the cause of the people of South East and cannot make them realise their objective of producing an Igbo man as president.
He maintained that the publisher of the book, Igbokwe played politics outside his state, so that the Igbo race can be integrated with one another race.
Adigba said the failure of the Igbo to reintegrate with other ethnic nationalities politically was responsible for the retrogression of the race in Nigerian politics.
Igbokwe, also addressing guests on the occasion, maintained that the Igbo are not advancing politically because they refused to be integrated into National politics, lamenting that, despite their success in business, they are not successful in playing politics at the national level.
Corroborating Dimgba, Igbokwe noted that there was the need for the Igbo people to stand up and build bridges so that their objective of producing the next president of Nigeria could be realised.
According to him: “I have decided to raise my voice, I hope my people will hear me while trying to quell the effect of the war, our people are spoiling for another war, mayhem is being unleashed in Igbo land, and there is palpable fear.
“Those who could speak have lost their voice, mindful of the consequences of their actions, I am calling on all Igbo leaders to speak up because all actions carry consequences, consequences of the silence will be too dastardly to sustain.
“Those silently supporting the wild wind should be careful or else they hand over to their children,” he said.
Igbokwe urged those spoiling for war to jettison their plan and embrace dialogue, urging them to learn from the South West region that despite the challenges faced after the annulment of the June 12, 1993, election, they did not go to war, and the region had the opportunity of producing two of her sons for presidential position in 1999.
“You have to build bridges to become president of Nigeria, but it is unfortunate the Igbo are burning bridges.”
Speaking at the event, Chief Uche Dimgba who is the coordinator of Igbo in All Progressives Congress, APC in Lagos, described Igbokwe as “a Frank, fearless and reliable leader, who based his views on issues and stand by his opinions, and we the Igbo have confidence in him and believe he can lead us aright.”
“He is a leader we Igbo believe in and we will follow him. If he can serve all the governors produced in Lagos State since 1999, he is a better man to follow because he possesses all the experience that can be of benefit to Igbo both at home and in the diaspora.”
The post Attacks on S’East: We must explore all options of negotiation — Stakeholders urge Igbo appeared first on Vanguard News.
Sourced From: Vanguard News
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Military, Police Ring Abuja to Forestall Boko Haram Attack
UFC: Usman gets N584m after beating Masvidal
Insecurity: Lagos bans occupation of abandoned buildings
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