Legal Advisory Notice for Cabotage compliance for Ship Owners / Charterers / Managers / Agents Shipping Companies and the Maritime Public
Introduction
On September 15, 2020, the Nigerian Maritime Administration and Safety Agency (“the Agency”) issued a Marine Notice on “Cabotage Registration of Vessels operating in Nigerian Waters and Renewal of Expired Certificates/Licenses” (“the Notice”). Acting in exercise of its powers under the Coastal and Inland Shipping (Cabotage) Act 2003 (“the Act”) and the Guidelines on Implementation of the Act, the Agency has issued a three-month ultimatum within which vessels in use in Nigeria‟s waters are to comply with Section 22 of the Cabotage Act by meeting registration requirements under the Cabotage Merchant Shipping Acts. The Agency intends to enforce compliance through International Oil Companies as well as relevant government authorities.
Following enquiries, we have received from some of our clients on the import of the Notice, we have offered the following advisory for all interested parties.
Advisory 1. NIMASA has acted within its powers under section 22 and 29 of the Cabotage Act, as those sections require Cabotage Vessels to be registered by the Registrar of Ships in the Special Cabotage Register domiciled in NIMASA.
2. The Notice places emphasis on registration and renewal of certificates of registration which confer authority to trade within cabotage waters in Nigeria. Vessels previously registered or granted licenses or permits which have expired are deemed to have been deleted from the Register under section 25 of the Act.
3. Registration entails submission of valid documentation in proof of ownership of the vessel and where necessary, obtaining relevant waivers. The „Nigerian Ship Registration Requirements‟ issued by the Nigerian Ship Registration Office is useful in this regard.
4. Non-compliant vessels and companies stand the risk of vessel detention and forfeiture or fines ranging from N5,000,000 to N15,000,000 as provided in sections 35-37 of the Act.
Conclusion Ship owners, charterers, managers, agents and other interested persons are advised to take measures to ensure vessels they own or deployed in their operations are compliant. The Notice places responsibility for proper due diligence prior to and even in the course of hire or voyage fixtures. You may contact us if you have any enquiries in this regard.
Akabogu & Associates (“AkaboguLaw) is a specialist law firm in Nigeria for maritime and shipping. It is ranked as a „Leading Firm‟ for Shipping and Transport (EMEA) by Legal500.
This advisory is provided for general information purposes and is not issued or intended as legal advice for any specific set of facts or circumstances. It is not and should not be taken or relied upon as legal advice. You may contact Akabogu & Associates for advice on any specific set of facts or circumstances which shall be separately reviewed on its merits. For any enquiries on the subject or related matters, you may contact us through the following emails: info@akabogulaw.com or emeka@akabogulaw.com