NIGERIA Law and Practice Contributed by: Adedoyin Afun and Michael Abiiba, Bloomfield LP
• disbursements of the master on account of the ship; • claims in respect of loss of life or personal injury occurring, whether on land or on water, in direct connection with the operation of the ship; and • claims for ports, canal and other waterways, dues and pilotage dues. Also, pursuant to Section 56 of the MSA, the priority of mortgages is determined by the date on which each mortgage is recorded in the reg - ister and registered mortgages have priority over unregistered mortgages. 4.11 Insolvency Laws Applied by Maritime Courts Nigeria has a scheme of insolvency and restruc - turing laws, some of which are provided in the Companies and Allied Matters Act 2020 (CAMA) and the Bankruptcy Act, Cap. B2 LFN, 2004 (the “Bankruptcy Act”). These schemes include administration and companies’ voluntary arrangements, which are analogous to Chapter 11 bankruptcy proceedings. The AJA, which governs the arrest and judicial sale of vessels, does not include these bank - ruptcy proceedings as grounds for the arrest and judicial sale of a vessel. However, the CAMA and the Bankruptcy Act grant administrators, liquida - tors, and others wide powers with respect to the sale of a company’s assets, with or without an order of court. 4.12 Damages in the Event of Wrongful Arrest of a Vessel Section 13 of the AJA states that the arresting party will be liable for wrongful arrest where: • the arrest was obtained unreasonably and without good cause; or
• the arresting party, unreasonably and without good cause, demands excessive security in the proceeding, or fails to give a consent required for the release of a ship or other property. The AJPR also provides reparation for needless arrest where it is procured in bad faith, through gross negligence, or unlawfully. Following the dismissal of the suit, on the aforementioned basis, the AJPR states that the arrestor would be liable for damages for any loss, injury or expens - es that the defendant may have sustained by reason of the arrest, upon the application of the defendant made at any time before the expiry of three months from the termination of the suit. In addition, the defendant with the right to insti - tute an action for wrongful arrest against the arrestor if the action is not based on the same grounds upon which the court may have made the award of compensation, and the defendant shall be awarded costs, damages, demurrage and expenses against the arrestor where the court is satisfied that the arrest was wrongful. 5. Passenger Claims 5.1 Laws and Conventions Applicable to the Resolution of Passenger Claims The following international conventions are applicable to the resolution of maritime passen - ger claims: • the Athens Convention Relating to the Car - riage of Passengers and their Luggage by Sea 1974, and its Protocol of 1990; and • the LLMC.
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