NIGERIA Law and Practice Contributed by: Adedoyin Afun and Michael Abiiba, Bloomfield LP
Notwithstanding the foregoing, the court may also, (i) on the application of the arrestor or any interested party, or (ii) on its own volition, but with notice to the relevant parties 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 auction conducted 21 days after the Admiralty Marshal places an advertisement to that effect in two national daily newspapers. Where the par - ties 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. The priority of claims against arrested ships or property are laid down in the AJPR as follows: • statutory/court charges and expenses, such as the Admiralty Marshall’s expenses in con - nection with the ship or property; • salvage, wreck removal and contribution in general average;
• wages and other sums due to the master, officer, and other members of the ship’s complement in respect of their employment on the ship; • disbursements of the master on account of the ship; • loss of life or personal injury occurring, whether on land or on water, in direct connec - tion with the operation of the ship; • ports, canal and other waterways, dues and pilotage dues; • possessory liens (repairer’s lien – where the ship is still in possession); • mortgages – priority of mortgages is deter - mined by the date on which each mortgage is recorded in the register and registered mortgages have priority over unregistered mortgages; • in rem action for possession or ownership of a ship; • in rem action in relation to a dispute between co-owners regarding possession or use of a ship; • in rem action in relation to loss or damage to cargo carried on a ship; • lien in rem action in relation to damage received by a ship; • in rem action in relation to a dispute arising out of contracts for carriage of goods or use of a ship; and • in personam action. Pursuant to Section 67 of the MSA, maritime liens have priority over mortgages and any other claims, in the following order: • claims for salvage, wreck removal and contri - bution in general average; • wages and other sums due to the master, officers and other members of the ship’s complement in respect of their employment on the ship;
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