Supreme Court overrules previous case law on service outside jurisdiction Introduction In a watershed decision in Akeredolu v Abraham (1) the Supreme Court appears to have overruled itself on the question of what constitutes ‘outside jurisdiction’ in relation to the Admiralty Court (Federal High Court) for the purpose […]
Suppression of Piracy and Other Maritime Offences Act 2019: a review Introduction The president recently assented to the Suppression of Piracy and Other Maritime Offences Bill, successfully concluding almost a decade of advocacy to implement such a law in order to curb and deter sea piracy, armed robbery and other unlawful acts at sea. The […]
Who is the official Receiver of Wrecks? Wrecks pose a real danger to navigational safety and the marine environment and their expeditious removal, control and management is therefore a key concern. The issue of wreck control in Nigeria has been the subject of an increasingly fierce conflict between the Nigerian Inland Waterways Authority […]
What do caveats have to do with ships? Introduction A caveat registered in the courts serves to prevent a ship’s arrest by committing to pay a bond for any sum claimed against the ship which is equal to or less than the amount stated in the caveat. This is understandable as ships are highly valuable […]
What Claims Can Found the Arrest of a Ship The Nigeria Ship Arrest Series is published by Akabogu & Associates, a Nigerian law firm. It will run weekly through the first quarter of 2021 to provide ship and cargo interests related to Nigeria with information to make quick decisions when faced […]
Waterways: Lagos v federal government – who won? Facts Lagos v federal government stemmed from a Lagos Federal High Court judgment in which Justice Tsoho had held that the National Assembly was competent to make laws governing Nigeria’s intrastate and inland waters. The plaintiff at said trial (Incorporated Trustees of the […]
Vessel delays due to COVID-19: who bears the costs? Introduction On 26 March 2020 President Muhammadu Buhari announced that only cargo vessels which have been at sea for more than 14 days can dock in Nigerian ports. Following this announcement, some commentators have expressed fears of a tightening of supplies. Although most cargo originates from […]
Status of progressive storage charges This update provides a review of progressive storage charges in Nigeria by examining the recent Court of Appeal decision in Apapa Bulk Terminal Limited v Nigerian Shippers’ Council. Facts In a February 20 2014 letter, the minister of transport conveyed the president’s appointment of the first respondent […]
Special tariff regime proposed for vessel acquisition A tripartite arrangement between the Federal Ministry of Finance, the Customs Service and the Nigerian Maritime Administration and Safety Agency (NIMASA) seeks to encourage the expansion of Nigeria’s indigenous fleet through the creation of a special tariff regime for vessel acquisition in the country. Speaking on […]
Shipping loans and collateral damage Shipping finance transactions are characterised by peculiar risk factors principally on account of the shipping asset’s transient operations. The applicable rules and mercantile usages – reflective of this reality themselves – must therefore be adequately factored into financiers’ lending procedures and loan recovery strategies, whether they be banks […]
Ship detention gone rogue Introduction In January 2017 Vice President Yemi Osinbajo promulgated the Harmonised Standard Operating Procedures on Arrest, Detention and Prosecution of Vessels and Persons in Nigeria’s Maritime Environment 2016 (HSOPs), which were developed by the Federal Ministry of Justice and endorsed by the navy. In his foreword to the procedures, […]
What Ships Can be arrested It is not all ships properly defined that can be arrested, though most ships may be subject to arrest. Ships are not limited to the composite-shaped hulls and sea-going vessels that many are familiar with. Under Nigerian law, they include barges, drilling rigs, offshore industry mobile units and even wrecks.1 […]
Nigeria Ship Arrest Series The Nigeria Ship Arrest Series is published by Akabogu & Associates, a Nigerian law firm. It will run weekly through the first quarter of 2021 to provide ship and cargo interests related to Nigeria with information to make quick decisions when faced with ship arrest situations. Part One – What […]
Senate reapproves National Transport Commission Bill In late 2018, the president declined to assent to the National Transport Commission (NTC) Bill (which the Senate had passed in March 2018). The president cited the need to review certain fiscal provisions set out in the bill, as well as concerns over the duplication of functions which already […]
Release of A Ship from Arrest The Nigeria Ship Arrest Series is published by Akabogu & Associates, a Nigerian law firm. It will run weekly through the first quarter of 2021 to provide ship and cargo interests related to Nigeria with information to make quick decisions when faced with ship arrest situations. […]
Recognition of foreign judicial ship sales Introduction The is being developed and Comite Maritime International intends to submit it to the International Maritime Organisation for consideration as an international maritime convention. The purpose of the draft convention is to solve several problems faced by purchasers following a foreign judicial sale, particularly […]
Proper service of processes in admiralty action in rem Introduction The service of an originating process on a defendant is a threshold issue and condition precedent for the exercise of a court’s jurisdiction. Where there is no such service, a court or tribunal is deemed incompetent to adjudicate and make any […]
The Procedure for Ship Arrest in Nigeria The Nigeria Ship Arrest Series is published by Akabogu & Associates, a Nigerian law firm. It will run weekly through the first quarter of 2021 to provide ship and cargo interests related to Nigeria with information to make quick decisions when faced with ship arrest […]
Ports and Harbours Authority Bill 2016: an overview In April 2017 the Ports and Harbours Authority Bill passed its third and final reading in the Senate. In accordance with the Constitution, the bill still requires concurrent passage by the House of Representatives and presidential assent to become law. However, many industry watchers […]
Notable amendments to cabotage act Introduction The National Assembly enacted the Coastal and Inland Shipping (Cabotage) Act in 2003 to enhance indigenous participation in the maritime sector. (1) The act focuses on the development of tonnage and the establishment of a financing fund to bankroll domestic vessel acquisition. With a coastline measuring over 800 […]
NIMASA introduces new compliance strategy for cabotage The Nigerian Maritime Administration and Safety Agency (NIMASA) recently issued Marine Notice M11/01/19/SIIO2 to further the Cabotage Act’s objectives and to ensure strict compliance. The notice was issued to all local and foreign operators in the Nigerian oil and gas industry and requires them to submit […]
Maritime security – who’s in charge? Several international instruments to which Nigeria is legally bound call for the preservation of maritime security. As such, it is imperative to understand which agencies should be held accountable for protecting Nigeria’s waters. Statutory functions of various agencies Nigerian Navy The Nigerian Navy arguably has the primary responsibility for […]
Maritime insurance claims: limiting insurers’ liability Introduction A marine insurance contract is one of indemnity: the insurer agrees to indemnify the insured to an extent, in a manner agreed by both parties, against risks that are also agreed by both parties. In other words, in exchange for a premium, the […]
Limiting shipowners’ liability for compulsory pilotage services The peculiar nature of the shipping business makes the prudent management of time, risk and liability a sacred imperative to staying afloat. Unfortunately, loss does occur despite a shipowner’s best efforts; the perils of the sea constituting only a fraction of their worries. It is not uncommon […]
Limiting shipowner liability: how to have your cake and eat it Introduction Imagine that a ship has caused damage and the claims to which the shipowner will be exposed are significant. The claimant has yet to arrest the vessel, but is likely to do so at any time. The shipowner will not want […]
Liberal approach to enforcement of crew wage claims Introduction Following the Federal High Court’s ruling in Assurance foreningen Skuld v MT “Clover Pride”(1) that claims for crew wages fall outside its jurisdiction (for further details please see “Claims for unpaid crew wages unenforceable in Federal High Court”), practitioners and other observers are understandably eager […]
Legal Advisory Notice to Importers and Clearing Agents Logistical and regulatory measures resultant from the COVID-19 pandemic have exacerbated long standing problems associated with cargo clearance from Nigerian ports. In many cases, they have led to unanticipated losses which in turn have engendered a trend of increasing dispute situations among cargo owning, carrier […]
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” […]
Legal limits of armed guards on board ships Voyaging in West African waters, particularly the Gulf of Guinea, is considered dangerous and raises the question of whether shipowners are entitled to put armed guards on board their vessels to protect them from attacks by arms-bearing third parties. Considering reported attacks of armed robbers at […]
Legal issues arising from wrecks and their removal Introduction When shipwrecks occur, they often pose navigational and environmental hazards and thus their urgent removal is necessary. Nigeria has had its fair share of wrecks, and in response on April 7 2017 the Nigerian Maritime Safety and Administration Agency (NIMASA) directed that […]
Laytime and demurrage in wet cargo trade Introduction For those in the business of shipping, delays can be costly. It is common practice for shipowners to charter vessels in return for freight. When calculating freight, shipowners take into consideration the period of the charter. Therefore, where a shipowner has calculated freight based on […]
Judicial saga of crew wage claims Introduction In its 2018 decision in MT “Clover Pride”, the Federal High Court held that it lacked the jurisdiction to entertain claims for wages of a ship’s crew (for further details please see “Claims for unpaid crew wages unenforceable in Federal High Court”). In that […]
Judge rules no limitation period for admiralty claims enforceable in rem In a recent ruling, a Federal High Court judge held that there is no limitation period for claims brought within the admiralty jurisdiction that are enforceable in rem. Taken literally, this decision could have significant practical consequences, as proceedings could effectively be brought at […]
Hamburg Rules may have no legal effect in Nigeria Introduction Liability arising from the carriage of goods by sea was largely regulated in Nigeria by the Carriage of Goods by Sea Act (as amended), a local law which transposed the International Convention for the Unification of Certain Rules relating to Bills of Lading 1924 […]
Execution of the Warrant of Arrest The Nigeria Ship Arrest Series is published by Akabogu & Associates, a Nigerian law firm. It will run weekly through the first quarter of 2021 to provide ship and cargo interests related to Nigeria with information to make quick decisions when faced with ship arrest situations. Part […]
Economic regulator issues SOPs for Nigerian ports Introduction Following an executive order confirming it as the economic regulator of Nigeria’s ports, the Nigerian Shippers’ Council recently issued standard operating procedures (SOPs) that apply to various port users and operators. The SOPs are designed to fight corruption and make the ports more viable for […]
Don’t let your maritime claim expire Introduction Maritime claims arise in relation to the ownership, possession, mortgage and general operation of a ship and are primarily enforced by an admiralty action in rem or in personam. Admiralty actions do not last forever; rather, they have prescribed limitation periods, which often vary depending on the […]
Doing maritime business in Nigeria’s $10 billion charter market The general Nigerian economic landscape could be seen as challenging, but its robustness and potential make it worthwhile for parties that do their research. Maritime industry segments that companies may be interested in include ship operations, cargo importation and the various support services […]
Demystifying ship arrests in Nigeria Introduction A ship is not arrested in a police station nor by shackle-bearing marine police on the sea. Lawyers and courts must be involved via a series of specific procedures and conditions. Claims involving ships can be resolved faster than many other commercial claims if both parties understand […]
Court of Appeal declares collection of SLAC illegal On June 21 2017 a court of appeal sitting in Lagos State declared that the collection of the shipping line agency charge (SLAC) by shipping companies and its subsequent levy on importers and consignees was illegal. Upholding in part Justice Ibrahim Buba’s […]
Conversion claims based on unauthorised creation of lien on cargo Where a bill of lading holder fails to take delivery within a reasonable time, the carrier may be entitled to land and store the goods at the cost of the bill of lading holder.(1) This common-sense position accords perfectly with the Bill […]
Concurrent liabilities for loss of or damage to goods in tort and contract Introduction Both Broadline Enterprises Ltd v Monterey Maritime Corporation and Pacers Multi-Dynamics Ltd v The MV Dancing Sister provide Supreme Court case law on the fact that, as regards carriage of goods by sea claims, concurrent rights to sue in […]
Claims for unpaid crew wages unenforceable in Federal High Court Introduction Maritime claims are generally under the Federal High Court’s exclusive jurisdiction and enforceable by an admiralty action in rem or in personam. (1) Admiralty proceedings are sui generis and a unique set of rules and procedures apply. Section 2 of the […]
Can NIMASA stop issuing Cabotage Waivers? Introduction The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced a five-year strategic plan to stop the issuance of cabotage waivers. Cabotage waivers were introduced in the Coastal and Inland Shipping (Cabotage) Act, under which the commercial transport of goods and passengers within Nigerian coastal and inland […]
The Nigeria Ship Arrest Series is published by Akabogu & Associates, a Nigerian law firm. It will run weekly through the first quarter of 2021 to provide ship and cargo interests related to Nigeria with information to make quick decisions when faced with ship arrest situations. Part Eight – Challenging the Order of Ship […]
Avoiding vessel detention in Nigeria 19 April 2017 | Contributed by Akabogu & Associates Shipping & Transport, Nigeria IntroductionUnsafe or unseaworthy vessel Offences committed by shipmaster or ownerTrading in Nigerian waters contrary to Coastal and Inland Shipping (Cabotage) Act Non-payment of dues and ratesDispute as to weight or quantity of goods or ship’s draught […]