Shipping 2026

NIGERIA Law and Practice Contributed by: Adedoyin Afun and Michael Abiiba, Bloomfield LP

If the ordered security for costs is not provided within the set timeline, the vessel will be released from arrest. 5.6 Arresting Bunkers and Freight Claims for bunkers and freight are maritime claims under the AJA. It is therefore possible to arrest bun - kers and freights in Nigeria. See 1.1 Domestic Laws Establishing the Authorities of the Maritime and Shipping Courts and 5.4 Unpaid Bunkers . 5.7 Sister-Ship Arrest Section 5 (4) of the AJA permits sister-ship arrests, provided that the Relevant Person is, at the time the action is filed, the owner, in respect of all the shares of the sister-ship. 5.8 Other Ways of Obtaining Attachment Orders Apart from ship arrests, another possibility of obtain - ing attachment orders is through an application for a Mareva injunction, which is an interim attachment of assets equivalent to the value of the claimant’s claim. Nigerian courts will only grant the injunction where the claimant has a justifiable cause of action against the defendant and there is a real risk of the defendant Pursuant to the AJPR, an arrested vessel may be released upon an application by a party under the following circumstances: • an amount equal to the amount claimed or the value of the ship has been paid into court; • the defendant provides security in an amount equal to the amount claimed in the suit, or the value of the vessel, whichever is the lesser; • the arresting party consents to the release in writ - ing; • the suit is discontinued/dismissed and there is no caveat against the release of the vessel; and • the cargo on board the ship is under arrest, but the ship is not. An LOU from a member of the IGP&I would be accept - able for the release of an arrested vessel. A bank guar - antee from a foreign bank would not be accepted by the FHC, as it is not one of the forms of security pre - removing their assets from jurisdiction. 5.9 Releasing an Arrested Vessel

scribed by the AJPR. Notwithstanding, the FHC may accept a foreign bank guarantee for the release of an arrested vessel where the arresting party is willing to accept such a guarantee. 5.10 Procedure for the Judicial Sale of Arrested Ships Where a vessel has been under arrest, and her owners have failed to provide security for her release within 60 days from the date of arrest, the court may, on the application of the arrestor or any interested party, order that the vessel be valued and sold by the Admi - ralty Marshal and the proceeds of the sale placed in an interest-yielding fixed-deposit account in the name of the Admiralty Marshal, pending further orders from the court. Notwithstanding, the court may also, (i) on the appli - cation of the arrestor or any interested party, or (ii) on its own volition, but with notice to the relevant par - ties and subject to a valuation, order the sale of the arrested vessel where it is deteriorating in value. Whilst the Admiralty Marshal has custody from the arrest of the vessel, the arrestor(s) are liable for the cost of maintaining the vessel until she is released or sold by the Admiralty Marshal. An application by the arrestor or any interested party for an order for the valuation and sale of the arrested vessel constitutes an undertaking by that party to pay, on demand to the Admiralty Marshal, the cost of complying with the order. The Admiralty Marshall is also entitled to deduct 2% from the proceeds of the sale of the ship to cover their costs for the valuation and sale of the vessel. Unless ordered by the court, the judicial sale of an arrested vessel will be undertaken by a public auc - tion conducted 21 days after the Admiralty Marshal places an advertisement to that effect in two national daily newspapers. Where the parties agree to the sale of the arrested vessel by private treaty, this may be ordered by the court. After the sale, the Admiralty Marshal will file a return of sale, as well as an account of sale and the vouchers of sale. The Admiralty Marshal will also pay the proceeds of sale to the court.

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