NIGERIA Law and Practice Contributed by: Adedoyin Afun and Michael Abiiba, Bloomfield LP
NIMASA is responsible for the enforcement of the sulphur-content limitation and the limit is the same as the global limit and IMO Standard, 0.5%. Although there have been no large-scale enforcement actions, NIMASA engages with the Nigerian Upstream Petroleum Regulatory Commission to ensure that marine fuel to be refined or imported meets the IMO standard. There have been no known proceedings/sanctions that have taken place because of a violation of the sulphur limitation. 9.3 Trade Sanctions Nigeria has not incorporated any of the international trade sanctions. The main legislation governing sanc - tions and export controls is the Nigerian Customs Ser - vice Act 2023 (NCA). The Nigerian Customs Service has legal authority to act on behalf of Nigeria in all cus - toms-related matters. While there are no specific enti - ties that have been sanctioned, the Nigerian Customs Service can impose sanctions such as the seizure and forfeiture of goods. In cases of serious violations, civil or criminal liability may arise, and appropriate pros - ecution proceedings may be instituted in the Nigerian courts. There are no trade sanctions-related impacts of the Russia–Ukraine war on Nigeria, save for the shortage in the supply of certain agricultural products and the consequent increase in the prices of such commodi - ties in Nigeria. The conflict in Ukraine is poised to impact Nigeria, which relies on Ukraine for key imports such as iron, steel and various dairy products. The war has con - tributed to heightened global crude oil prices, which have, in turn, led to an upsurge in international freight charges. There are no court decisions on matters relating to non-performance of obligations due to the war in Ukraine. 9.4 International Conflict The various international conflicts have impacted the legal and economic landscapes in Nigeria. The Russia– Ukraine War (the “War”), for example, has negatively impacted the execution of the 2010 Nigeria–Russia
Memorandum of Understanding on co-operation in the oil and gas supply chain. Being an importation- dependent economy, the War has also negatively impaired Nigeria’s importation of food items, thereby leading to a surge in food prices. 10. Additional Maritime or Shipping Issues 10.1 Other Jurisdiction-Specific Shipping and Maritime Issues Cabotage Operations The Cabotage Act provides that only vessels which are wholly owned, manned by Nigerians, and built and registered in Nigeria can engage in the cabotage trade. The Cabotage Act further provides that vessels shall not be registered or used in cabotage, unless: • the vessel is wholly and beneficially owned by Nigerian citizens or by a company wholly and ben - eficially owned by Nigerian citizens; • a vessel or company is deemed to be wholly and beneficially owned by Nigerian citizens where all the shares in the vessel or in the company are held by Nigerian citizens, free from trusts or other obligations (fiduciary or otherwise) in favour of non- Nigerians; • the vessel is under a bareboat charter to Nigerian citizens or companies and is under the full control and management of Nigerian citizens or a compa - ny wholly and beneficially owned by Nigerians; • the vessel is owned by a company registered in Nigeria and the percentage of shares held in the company by Nigerian citizens is not less than 60%; and • the vessel is exclusively manned by officers and crew of Nigerian citizenship. However, the Minister may grant waivers on the requirement for a vessel to be wholly owned and wholly manned by Nigerian citizens and to be built in Nigeria, if the Minister is satisfied that there is no wholly owned Nigerian vessel suitable to provide the services or perform the activities required, no quali - fied Nigerian officer or crew for the position specified
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