Few days after a Lagos High Court granted an injunction to LADOL Free Trade Zone(FTZ) in Lagos over the order by President Goodluck Jonathan to relocate the $500 million oil project from LADOL Free Trade Zone(FTZ) in Lagos to Aggae in Bayelsa State, another operator has been granted a similar injunction.
Few days after a Lagos High Court granted an injunction to LADOL Free Trade Zone(FTZ) in Lagos over the order by President Goodluck Jonathan to relocate the $500 million oil project from LADOL Free Trade Zone(FTZ) in Lagos to Aggae in Bayelsa State, another operator has been granted a similar injunction.
Jonathan had directed that all oil and gas related cargoes coming into Nigeria, destined for any facility or Port must instead be discharged at one of Intels’ facilities at Onne, Warri and Calabar and that LADOL’s privately developed facilities be moved from Lagos to Bayelsa or to an Intels facility until a suitable facility in Bayelsa is built.
Perhaps taking a cue from LADOL, another operator; the Snake Island Integrated Free Zone had also gone to court to challenge the Presidents order.
But, Justice Saliu Saidu of the Federal High Court in Lagos on Tuesday restrained President Goodluck Jonathan from assenting to the bill for an Act to amend the Oil and Gas Export Free Zone Act.
The judge also restrained the National Assembly, the Clerk of the National Assembly from forwarding the bill for an Act to Amend the Oil and Gas Export Free Zone Authority Act. Cap. 05 to the president for assent.
He also restrained the defendants, their agents and privies from prohibiting the usage of the plaintiffs’ facilities at for Oil and Gas cargoes destined for use in the free zone.
The order was sequel to a motion ex-parte, in a suit number FHC/L/CS/719/15, filed before the court by Professor Olanrewaju Fagboun, on behalf of Niger Dock Nigeria Limited, Simco Free Zone Company and Niger Dock Nigeria Plc-FZE, who are plaintiffs in the suit.
The court also restrained the National Assembly, the Clerk of the National Assembly, the Attorney-General of the Federation, Minister of Industry, Trade and Investment, the Minister of Transport, and the Nigeria Ports Authority (NPA).
In an affidavit sworn to by Yusufu Abdullahi, the Director of Simco Free Zone Company, the deponent averred that Niger Dock Nigeria Limited is a promoter of Snake Island Integrated Free Zone (SIIFZ), and that the Simco is a company saddled with the responsibility to develop, market, manage, operate, and administer SIIFZ.
The deponent averred that SIIFZ was approved as a privately owned and managed Free Zone by a presidential declaration in January 2005, and was duly licensed by the Nigeria Export Processing Zones Authority (NEPZA), in April 2005.
He said SIIFZ is operated by Simco Free Zone Company, under the direct supervision and monitoring of NEPZA.
He added that other regulatory agencies such as Nigeria Ports Authority (NPA), Nigerian Customs Service (NCS), the Nigerian Immigration Service (NIS), the Nigeria Police Force (NPF), and State Security Service (SSS), are present within SIIFZ to ensure due compliance with all laws and that appropriate security is maintained.
The deponent averred that Section 5(3) of the bill seeks to expand the powers of OGFZA such that it can without further assurance take over and perform the functions hitherto performed by NEPZA.
While Section 10 of the bill further seeks to confer the rights to handle oil and gas cargoes only at approved oil and gas concessioned ports, with freedom to investors to choose ports of discharge of their cargoes within designated terminal at Onne, Warri and Calabar ports.
He stated that the bill did not define what constitute “oil and gas related cargoes,” and that this will give room to situations where cargoes intended for SIIFZ are wrongly classified as oil and gas relates cargoes.
The deponent further averred that, it is a known fact that a total of twenty-four ports were concessioned to private investors, with 14 and 10 in the western and eastern zones of NPA respectively.
He stated that only one of the port concessionaires, Integrated Logistic Services Limited (INTELS) operates in Warri, Onne and Calabar ports and that the amendment proposed in Section 10 will confer a right of monopoly only on INTELS, which he said will be to the deterrent of other port concessionaires and free zones.
He stated that there are indications that the Senate has passed the bill and is seeking to hurriedly present same to President Jonathan for assent.
He added that the hurried passage of the proposed bill is meant to foist a situation of fait accompli on the incoming administration of the federal level, and that unless the defendants are restrained by the court, the defendants will confer an undue advantage on ports being proposed to be designated as oil and gas free zone, and divert traffic from the free zone and port development operated by the plaintiffs with devastating social and economic consequence.
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