NIGERIA Law and Practice Contributed by: Adedoyin Afun and Michael Abiiba, Bloomfield LP
9. Additional Maritime or Shipping Issues 9.1 Other Jurisdiction-Specific Shipping The Cabotage Act provides that only vessels which are wholly owned and manned by Nige - rians and built and registered in Nigeria can engage in the cabotage trade. and Maritime Issues Cabotage Operations The Cabotage Act further provides that ves - sels 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 beneficially 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 company 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
known, there are no specific entities 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 appropri - ate prosecution 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 commodities in Nigeria. The conflict in Ukraine is poised to impact Nige - ria, which relies on Ukraine for key imports such as iron, steel and various dairy products. The war has contributed to heightened global crude oil prices, which have, in turn, led to an upsurge in international freight charges. This increase in crude oil prices directly influences the cost of bunker fuel and has heightened importation cost. This is likely to also inflate consumer prices. There are no court decisions on matters relat - ing to non-performance of obligations due to the war in the Ukraine. 8.4 International Conflict(s) The various international conflicts have impact - ed the legal and economic landscapes in Nige - ria. The Russian-Ukraine war (the “War”), for example, has negatively impacted the execu - tion 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 (such as wheat, mackerel, fish products from Russia), thereby leading to a surge in food prices.
414 CHAMBERS.COM
Powered by FlippingBook