TheCable

Fidelis Oditah, a senior advocate of Nigeria (SAN), has explained why his client, Lagos Deep Offshore Logistics Base (LADOL), decided to withdraw a suit filed against the Goodluck Jonathan administration as regards maritime operations in the country.

Speaking at a press conference in Lagos on Thursday, Oditah, who is also a Queen’s Counsel (QC) in England, said LADOL’s decision to withdraw the suit was due to clarifications made by the Muhammadu Buhari-led federal government.

“President (Goodluck) Jonathan in the twilight of his administration (20 April 2015) that all oil and gas cargoes must go to three Eastern ports of Onne, Calabar and Warri controlled by one concessionaire (Intels) before beong transported to their ultimate destination,” Oditah said.

“That policy, which was inimical to the interests of Nigerians and is surprising for an elected President, created operational inefficiency, doubled handling charges and the cost of providing oil and gas products in other locations as it meant that the products had to be re-transported from those three ports to other ports such as Lagos.

“The result was to increase the amount of subsidy provided by the Federal Government, thereby wasting scare public resources.”

As a result of the directive by Jonathan, LADOL, through Oditah, obtained an injunction restraining the Jonathan administration from implementing the policy directive.

According to Oditah, the Buhari administration in April 2017, made clarifications on the directives and cancelled Jonathan’s controversial directive.

“On 21 April 2017 the President of Nigeria clarified the position of the FGN on a number of port reform initiatives, the designation of terminals and the development of port and other infrastructure along Nigeria’s coastal belt.

“The key policy clarification is the reaffirmation of the FGN policy articulated by Presidents Obsasanjo in 2006 and Yar’Adua in 2008 that all importers are free to choose any terminal or port for the discharge of their cargoes, subject to the presence of all requisite regulatory agencies at such ports as required by existing regulations and in line with the FGN policy of promoting competition and value for money.

“Consequently and for the avoidance of doubt the FGN cancelled any policy that designates certain ports by cargo type, eg oil and gas terminal, etc.”

Following the clarification, the visiting professor of law at the University of Oxford, on behalf of LADOL filed for withdraw of the suit against the federal government.

The withdrawal application is scheduled for argument on June 6, 2017.