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Home » Maritime Workers Union Threatens To Shut Down Ports Over NIMASA / NLNG Face-Off

Maritime Workers Union Threatens To Shut Down Ports Over NIMASA / NLNG Face-Off

by Joshua
May 9, 2013
in Uncategorized

Following the face-off between the Nigerian Maritime Administration and Safety (NIMASA) and the Nigerian Liquefied Natural Gas (NLNG) Limited, over alleged non-payment of some levies accruable to NIMASA, the Maritime Workers Union of Nigeria (MWUN) has taken sides with the maritime regulatory agency, saying the union may be forced to shut all the nation’s seaports if NLNG is not made to pay.

Following the face-off between the Nigerian Maritime Administration and Safety (NIMASA) and the Nigerian Liquefied Natural Gas (NLNG) Limited, over alleged non-payment of some levies accruable to NIMASA, the Maritime Workers Union of Nigeria (MWUN) has taken sides with the maritime regulatory agency, saying the union may be forced to shut all the nation’s seaports if NLNG is not made to pay.
The union insisted that the Federal Government should compel the Nigerian Liquefied Natural Gas (LNLG) Limited to pay the accumulated 3% levies on gross freight and 2% surcharge due on its Cabotage contracts to NIMASA within 21 days.
Addressing Journalists in Lagos yesterday, President General of the MWUN; Comrade Anthony Nted Emmanuel said that failure for the multinational company to pay within 21 days will lead to closure of the nation's seaports.
Putting holes in NLNG’s argument that it enjoys waiver and exemptions from payment of levies and charges, Nted said that the waiver which was granted to the company for 10 years has elapsed, adding that the NIMASA Act of 2007 makes it clear that all ships and shipping companies operating in the nation's water are expected to obey the provisions of the Act; especially, section 15.
The President General of MWUN also pointed out that apart from its general duty with respect to the development of shipping and merchant shipping and seafarers, the agency is the only institution of government that is statutorily empowered to provide direction on qualification, certification, employment and the welfare of maritime labour in Nigeria.
"The federal government has given them waiver for the past 10 years and the 10 years have elapsed, he stressed.
MWUN’s president expressed regret that since the government gave the NLNG a tax rebate for 10 years from 1989 when it started operations, the company still demanded for an extension after the expiration of the rebate.
He said that the union had written to President Goodluck Jonathan to intervene because the court had failed to take action on the issue, since the NLNG failed to appear in court.
“NIMASA took the matter to court and for four years, the case was not heard because the NLNG refused to appear in court. All efforts to make the gas company pay NIMASA the money failed,’’ Nted said.
 “The reason why they refuse to pay, we don't know and the Maritime Workers Union of Nigeria who is a beneficiary and NIMASA are suffering. I say beneficiary because the levy generated by NIMASA from most of the companies operating in the maritime industry is what they use to train the dockworkers, the seafarers and carry out other social responsibilities, but when LNLG has refused to pay the levy, that means that the dockworkers and others will not be trained, the seafarers will not be trained and other social responsibilities will not be carried out”, he pointed out.

"The union cannot sit down and fold its hands because NIMASA was established for dockworkers and seafarers and we feel that the time has come for us to intervene "
"This is the right time we want them to tell us who gave them the extension and why they refuse to pay NIMASA so that they would be able to take up their responsibilities".

He said the union strongly believes that the LNLG should be subjected to the laws of the land because it operates in Nigeria.
“The NIMASA Act 2007 stipulates that the Agency shall be funded by monies accruing to it from among other sources.
“Three per cent of gross freight on all international inbound and outbound cargoes from ships or shipping companies operating in Nigeria, as part of the funds to meet its operational costs.
“And the law makes it clear that all ships and shipping companies operating in Nigeria are expected to obey this provision,’’ he said.
"We wish to use this medium to inform Mr President to compel the LNLG to pay NIMASA without further delay, all accumulated 3% levies on gross freight and 2% surcharge due on its contract to NIMASA within 21 days and failure to do so ,our union may be compelled to shut down all the ports of the federation", he said.


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