NIGERIA Law and Practice Contributed by: Adedoyin Afun and Michael Abiiba, Bloomfield LP
foreign-owned vessel in favour of the Nigerian flag registration for the duration of the bareboat charter. Where a foreign-owned and bareboat-chartered ves - sel is to engage in cabotage operations within Nige - rian waters, it is required to be registered under the Special Register for Cabotage (Bareboat-Chartered Vessel). Further to the Coastal and Inland Shipping Cabotage (Bareboat Registration) Regulations 2006, eligibility for the Special Register for Cabotage (Bare - boat-Chartered Vessel) requires (i) the vessel to be bareboat-chartered to Nigerian citizens and to be under the full control and management of Nigerian citizens or a company, wholly and beneficially owned by Nigerian citizens, where all the shares in the com - pany are held by Nigerian citizens, free from any trust or obligation in favour of any person not a citizen of Nigeria, and (ii) the bareboat-charter period must be for at least five years. By virtue of Section 34 (1) of the NIMASA Act, small vessels, including fishing vessels, which are wholly or partly owned by Nigerian citizens and foreigners who are resident in Nigeria, are registrable under the Nigerian flag. Whilst the MSA requires the Registrar of Ships to keep a register for ships that are under construction in Nige - ria, only a fully constructed vessel can be registered under the Nigerian flag as a Nigerian ship. 1.5 Temporary Registration of Vessels The MSA permits the issuance of Provisional Certifi - cates of Registry for provisional registration of vessels under the Nigerian flag. Accordingly, vessels that are (i) located in a foreign country and owned by persons eligible to register a vessel under the Nigerian flag, and (ii) to be registered under the Nigerian flag, may be issued Provisional Certificates of Registry to sail the vessels to Nigeria. A Provisional Certificate of Registry is valid for six months or until the vessel’s arrival at a Nigerian port, whichever is earlier. In other circumstances, Provisional Certificates of Registry are issued to vessels that are within Nigerian waters and owned by persons eligible to register a vessel under the Nigerian flag, but who have yet to
fulfil the requirements for permanent registration and the issuance of a Certificate of Nigerian Registry. Nigerian law does not permit dual registration of ves - sels and a vessel can fly the flag of only one country at a time. As such, where a vessel is registered under a foreign flag, (i) a deletion certificate, from the foreign flag, is required for temporary or permanent registra - tion under the Nigerian flag, or (ii) a suspension certifi - cate is required, from the foreign flag, for the duration of the bareboat charter, for the registration of a foreign bareboat-chartered vessel under the Nigerian flag. 1.6 Registration of Mortgages Nigerian Mortgages The Registrar of Ships is responsible for the registra - tion of mortgages on Nigerian-registered ships. Where the mortgagor is a Nigerian-registered company, the ship mortgage must be registered with the Corporate Affairs Commission (CAC). For the registration of a ship mortgage, the required documents include: • the NSRO’s consent to a mortgage; • a formal letter of application by the ship-owner or their authorised representative; • a board resolution of the owners, authorising the mortgage (corporate owners only); • a duly signed and sealed NIMASA mortgage form, with stamp duty paid; • an executed deed of mortgage, duly stamped; and • a copy of a Certificate of Registration of Mortgage, as issued by the CAC. For registration of a ship mortgage with the CAC, the required documents include: • a formal letter of application by the ship-owner or their authorised representative; • an executed deed of mortgage, duly stamped; • a duly signed and sealed statutory Form CAC 9 (Particulars of Charge), with stamp duty paid; • a board resolution of the owners, authorising the ship mortgage; and • evidence of payment to the CAC of the required statutory fees.
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