Nigerian Maritime Industry: 2024 In Review

A. Increase in the Minimum Wage of Maritime Workers

In August 2024, shipping companies, under the aegis of Shipping, Shipping Agencies, Clearing and Forwarding Employers Association ("SSACFEA") and the Maritime Workers Union of Nigeria ("MWUN"), brokered a Memorandum of Understanding for minimum conditions of service and standards for workers in the Industry (the "Minimum Conditions MoU")¹ . The signing ceremony was organised by the Nigerian Shippers' Council ("NSC"), with the support of the Federal Ministry of Marine and Blue Economy (the "Marine Ministry")

The Minimum Conditions MoU came after twenty (20) years of failed negotiations for minimum standards for the conditions of service for workers and is geared towards improving the Industry. It is also tailored to enhance workers' welfare, promote safety standards, encourage fair competition, and foster trust and cooperation.

The Minimum Conditions MoU will also guarantee decent work conditions, fair remuneration, job security, and access to necessary welfare benefits for every worker in the shipping industry. Particularly, under the Minimum Conditions MoU, the Industry minimum wage is to increase from Seventy Thousand Naira (N70,000.00) to Two Hundred Thousand Naira (N200,000.00), which will be reviewed bi-annually.

The Honourable Minister of Marine and Blue Economy, Mr. Gbenga Oyetola (the "Marine Minister"), who witnessed the signing event, noted that the Minimum Conditions MoU is a testament to the progress that can be achieved through collaboration and mutual respect among key industry players in the Industry. He further expressed that the Minimum Conditions MoU is in congruence with the four (4)-year Key Performance Indicators Implementation Plan for ministries under the present government administration, which includes increasing the operational efficiency of handling imports and exports of cargoes.

The Marine Minister stated that a uniform standard, as promoted by the Minimum Conditions MoU, will guarantee a level playing field among employers in the maritime sector thereby preventing exploitation and promoting ethical practices in the Industry.

He admonished the workers at shipping agencies to increase their level of productivity and efficiency as a reward for the improved conditions agreed upon by their employers.

The President General of MWUN, Comrade Adewale Adeyanju, described the Minimum Conditions MoU as a significant milestone in the journey to end unfair labour practices and improve working conditions in the shipping subsector. On the other end, the Chairman of SSACFEA, Boma Alabi SAN, disclosed that the agreed minimum wage is currently the highest in any industry in Nigeria.

B. Mandatory Registration of Dockworkers

The Nigerian Maritime Administration and Safety Agency Act ("NIMASA"), pursuant to its powers under the Nigeria Maritime Administration and Safety Agency Act 2007 (the "NIMASA Act")² announced in October 2024 that the full enforcement of dockworkers' registration in Nigeria had commenced. All dockworkers intending to work in the Nigerian maritime space are now required to register with NIMASA.³ All international and national oil companies, terminal and jetty operators, and all other companies involved in stevedoring in the country are also mandated to refrain from engaging unregistered dockworkers.

The registration is being implemented via the electronic registration platform for maritime labour and issuance of Biometric Identity Cards to Dockworkers⁴ . All stakeholders, including dock labour employers and stevedoring companies, were afforded a thirty (30)-day moratorium period to either apply for new operating licences or renew expired licences.

This is part of the broader effort to ensure safe and regulated operations within Nigeria's maritime sector. Particularly, this will enhance NIMASA's capability to maintain an up-to-date database of dockworkers operating in the country, thereby developing globally accepted registration standards for dockworkers in Nigeria.

C. Nigeria Signs and Ratifies the Instrument of Accession for Six (6) IMO Conventions

The President of the Federal Republic of Nigeria ("FRN"), Asiwaju Bola Ahmed Tinubu (the "President") in November 2024 signed and ratified the instruments of accession for six (6) conventions of the IMO (the "Ratification").⁵ The six (6) instruments signed are:

(i) the Instrument of Accession of the Protocol of 2005 to the 1988 Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms on the Continental Shelf;

(ii) the Instrument of Accession of the International Convention of Standards of Training, Certification, and Watch-keeping for Fishing Vessel Personnel 1995; (iii) the Instrument of Accession of the Protocol Relating to Intervention on the High Seas in cases of Pollution by Substances other than Oil, 1973 as Amended;

(iv) the Instrument of Accession to the Protocol of 1996 to Amend the Convention on Limitation of Liability for Maritime Claims (LLMC) 1976;

(v) the Instrument of Accession to the Protocol to the 1974 Athens Convention Relating to the Carriage of Passengers and Their Luggage by Sea, 2002; and

(vi) the Instrument of Accession to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009.

The Ratification is projected to enhance Nigeria's maritime governance and align its practices with international standards, promoting maritime safety, security, and environmental protection.

The Director-General of NIMASA, Dr. Dayo Mobereola, while formally presenting the instruments to the Marine Minister, expressed his gratitude to the Marine Minister for facilitating the signing of the IMO conventions by the President after several years of awaiting presidential assent.⁶ On his part, the Marine Minister reassured stakeholders of the President's commitment to developing the Industry in line with global best practices.

One November 20, 2024, the Marine Minister deposited three (3) of the ratified instruments of accension to at the IMO headquarters in London (which serves as the repository for such conventions), while the remaining three (3) are undergoing further steps to finalize their deposition.⁷

D. Seaport and Export Promotion

• Earlier in the year, specifically in May 2024, the President commissioned the Funtua Inland Dry Port project in Funtua, Katsina State (the "Funtua Project")⁸ . The Funtua Project is geared towards bringing shipping and port services closer to the importers and exporters at the hinterland, decongesting the Seaports, create job opportunities, improve and accrue huge revenue to the Government, among other objectives. It is the third (3rd) of the sixth (6th) legacy inland dry port projects to be commissioned by the Federal Government of Nigeria ("FGN"). The Marine Minister also stated that the Funtua Project was designed to decongest the seaports and bring shipping services to the hinterlands. He further added that the Funtua Project will promote the African Continental Free Trade Area (AfCFTA) and create an enabling environment for businesses to strive in the Northern regions of Nigeria.
• Recall that following the approval of the FGN to develop the Badagry Deep Sea Port (the "Badagry Port") in August 2022, the Governor of Lagos State, Babajide Sanwo-Olu expressed hope that the Badagry Port would be completed and operable in about two (2) years. In August 2024 however, the Marine Minister expressed the Marine Ministry's commitment to facilitating the realisation of the Badagry Deep Sea Port project. He also revealed that he has engaged with both local and international investors who have shown interest in the Badagry Port as well as other port modernisation projects across Nigeria. The Marine Minister assured that the administration is eager to collaborate with these investors to bring these projects to fruition.⁹
• In September 2024, the Director-General of the Infrastructure Concession Regulatory Commission ("ICRC"), Dr. Jobson Ewalefoh (the "ICRC DG), stated that the construction of the Three Billion, Five Hundred Million United States Dollars (US$3,500,000,000.00) worth Bakassi Deep Seaport in Cross-River State (the "Bakassi Project") will soon commence¹⁰. The ICRC DG noted this during the signing ceremony of the project in Calabar, Cross-River State.
  He stated that the construction of the project would commence under the present administration of Governor Bassey Otu of Cross River State and assured that the Bakassi Project would be completed in time. He further explained that his assurance was premised on four (4) factors, to wit: the Cross River state's demonstration of commitment and zeal for the project, newly streamlined ICRC Public Private Partnership ("PPP") processes, the securing of a financier for the Bakassi Project and the support of all other relevant stakeholders.
• The FGN has also begun the construction of the Gateway Inland Dry Port in Ogun State (the "Ogun Port"). In October 2024, the Marine Minister performed the ceremonial ground-breaking ceremony at the Ogun Port. According to him, the Ogun Port is expected to enhance the efficiency of our logistics network, reduce greenhouse gas emissions associated with road transportation, and promote environmentally sustainable practices.¹¹
• Additionally, it is noteworthy that upon the official gazetting of the Dala Inland Dry Port, Kano (the "Dala Port") as a port of origination and destination by the FGN, the Dala Port is now fully operational. It is the first inland container port to export containers from the hinterland to seaports in Nigeria.
• The FGN has also officially launched a freight train service from APM Terminal in Apapa, Lagos, to the Dala Port. The Minister of Transportation, Senator Said Ahmad Alkali, presided over the inaugural train service at the Dala Port..¹²
• Moreover, the Nigerian Ports Authority ("NPA") has announced a partnership with the Nigerian Export Promotion Council and other relevant stakeholders to link the Export Processing Terminals with the Domestic Export Warehouse. NPA stated that this collaboration would facilitate port-hinterland connectivity and create opportunities for small and medium-sized enterprises.¹³

E. Dangote Petroleum Refinery and its Impact on Nigerian Shipping

Since the commencement of production in January 2024, the Dangote Refinery and Petrochemical Company ("Dangote Refinery"), larger than any other refinery in Africa or Europe, has significantly and positively impacted the Nigerian shipping industry.

The Dangote Refinery aims to use sea routes (via product tankers - targeting key locations like Warri, Port Harcourt, Calabar, and Lagos) to transport all its local petroleum product supply¹⁴. In October 2024, Dangote Refinery supplied about five hundred thousand (500,000) barrels of petroleum motor spirit ("PMS") to Lagos just one (1) month after it started to use trucks for its supply of PMS locally.

Between January and December 2024, over one hundred (100) product tanker vessels called at Dangote Refinery to lift petroleum product cargoes, ranging from fuel oil, naphtha, Jet A1, PMS, and automotive gas oil ("AGO") to Nigerian and overseas ports. Out of the aforesaid vessels (including those taking cargoes to other continents), more than seven-point-five percent (7.5%) of them are owned by indigenous Nigerian shipowners.

Interestingly, the majority of the above-stated Nigerian-owned vessels were financed by Nigerian banks, who have, in recent times, backed credible and competent indigenous Nigerian shipowners in their acquisition of younger and newer ships.

F. Dangote Petroleum Refinery exports its first Premium Motor Spirit shipment to Cameroon

In December 2024, Dangote Refinery, in a strategic partnership with Neptune Oil and Gas ("Neptune Oil"), a leading energy company in Cameroon, pioneered the export of PMS to Cameroon, with Dangote Refinery exporting, via motor tanker vessels, sixty thousand metric tonnes (60,000mt) of PMS to Cameroon (the "PMS Export"). The PMS Export was executed without the involvement of international intermediaries, thereby reflecting a growing focus on intra-African trade and independence. Particularly, the PMS was received by Neptune Oil. The logistical and shipping operations of the PMS Export was undertaken by Riverlake Shipbrokers.

This underscores the capacity of Dangote Refinery to meet domestic needs while positioning itself as a key player in the regional energy market. The President of the FRN and Chief Executive of the Dangote Group, Alhaji Aliko Dangote, in his remarks expressed that the Deal was part of the plans to lay the foundation for Africa's self-sufficiency in the energy sector. Also, the Director and Owner of Neptune Oil, Antoine Ndzengue, on his part, described the Deal as a landmark for bolstering energy security in the country while also supporting local economic development.

Both the Dangote Refinery and Neptune Oil Export are further exploring new initiatives to establish a reliable PMS supply chain that will help stabilise fuel prices and create new economic opportunities across the continent.

G. Lekki Deep Sea Port

Recall that in January 2023, the erstwhile President, Muhammadu Buhari commissioned the Lekki Deep Sea Port (the "Lekki Port"), a joint venture between the FGN through the NPA, Lagos State Government, the Tolarams Group (the owner of the Lagos Free Zone), and China Harbour Engineering Company. It is the largest seaport in Nigeria and the first fully automated port equipped with ship-to-shore cranes and rubber-tyred gantry cranes.

In November 2024, the management of Lekki Port LFTZ Enterprise Limited, Lekki Freeport Terminal, and Lagos Free Zone announced the launch of COSCO, Ocean Network Express ("ONE"), and ZIM alliance ("ZIM") services at the Lekki Port. Adesuwa Ladoja, the Chief Executive Officer (CEO) of Lagos Free Zone, hailed the launch as a transformative event for the region. She added that the introduction of COSCO, ONE, and ZIM services would attract substantial foreign direct investment to the Lagos Free Zone, thereby supporting economic revitalization.

H. Imminent Release of National Policy on Marine and Blue Economy

In November 2024, the Marine Minister, during a validation workshop (the "Workshop"), disclosed that the Marine Ministry is actively working towards completing the formulation and release of the National Policy on Marine and Blue Economy (the "National Policy") .¹⁶

The National Policy is being midwifed by experts and informed stakeholders in the maritime sector.¹⁷ The Marine Minister also emphasized that the National Policy would create a sustainable pathway for economic growth in fisheries, aquaculture, renewable energy, tourism, and seabed mining, while equally ensuring environmental sustainability.

Additionally, another stakeholder validation workshop held in December 2024 (the "December Workshop"), various recommendations were highlighted for consideration in the National Policy. These include capturing states as entities with responsibility in implementing the National Policy, increased investment in research and development in the blue economy, inclusion of policies for the development of nuclear power plant, privatization of maritime security within the Nigerian waters, monitoring of natural disasters hindering tourism, introduction of search and rescue operations in the blue economy, collaboration of the Marine Ministry with core peninsula players such as the Joint Development Zones of Nigeria.

It is also envisaged that the National Policy will enable the country address challenges (such as environmental degradation and illegal activities such as Illegal, Unreported, and Unregulated (IUU) fishing, boat mishaps, etc.) through a comprehensive framework that aligns with international best practices while safeguarding the country's marine resources for future generations. The National Policy seeks to implement comprehensive strategies to ensure the safety of all waterways. It also aims to establish comprehensive measures that will enhance safety across the country's waterways to address challenges such as the recent spate of boat mishaps that demand urgent attention.

I. Nigeria bids to be Elected to Category C of the IMO Council

In November 2024, the Marine Minister inaugurated an all-inclusive, inter-ministerial committee (the "Committee") towards devising a comprehensive strategy in actualizing Nigeria's bid to be elected to Category C of the IMO Council (the "Council') at the Council's thirty-fourth (34th) Regular Session in 2025 .¹⁸

The Committee comprises high-level officials led by the Permanent Secretary of the Marine Ministry, Mr. Olufemi Oloruntola. Members of the Committee include the Director of Legal Services and Maritime Security from the Marine Ministry and the Director-General of NIMASA, who will serve as alternate chairpersons. Others include the former Director-General of NIMASA, Dr. Ade Dosunmu (stakeholder); the representative of the Office of the Marine Minister, Dr. Charles Akinola; and the Assistant Director, Maritime Pollution Control at the Marine Minister, Mr. Paschal Ogah, who will serve as Secretary to the Committee the Director of International Organizations Division at the Ministry of Foreign Affairs the Managing Director of the NPA and the Executive Secretary of the NSC.

The Committee is tasked with identifying activities and actions that will promote Nigeria's standing in the IMO community by articulating and showcasing the country's maritime achievements. At the inauguration of the Committee in Abuja, the Marine Minister mentioned that between 2011 and 2019, Nigeria has lost out three (3) times after its successful stints in 1975, 2001, and 2005. He further noted that the country is due to return to the Council to cement its relevance as a strategic Maritime domain and a strong player in Africa and the global marine sector.

The Director-General of NIMASA, Dr. Dayo Mobereola, stated that the need for Nigeria's return to the Council is imperative, given the country's strategic location and significance as a hub of Maritime activities and as a voice for the sub-region on the IMO Council, where crucial decisions regarding international maritime shipping and trade are made. He added that membership in the Council comes with such benefits as technical assistance, manpower and institutional development, as well as political influence in the maritime sector of the global economy.

J. United Nations Approved Nigeria's Extended Continental Shelf

In 2009, Nigeria made a submission to the United Nations (the "UN"), through a High-Powered Presidential Committee (the "Committee"), for the extension of the country's maritime boundary (the "Submission"). The Submission was made pursuant to the United Nations Convention on the Law of the Sea, 1982 ("UNCLOS"). In May 2024, the Committee presented the report of the Submission to the President (the "Report").¹⁹

As contained in the Report, the UN finally approved the extension of Nigeria's maritime boundary by an additional sixteen thousand, three hundred (16,300) square kilometers (the "Extended Boundary"). A member of the Committee, Professor Larry Awosika, noted that the UN finally acceded to Nigeria's request after rigorous research on the geophysics, geology and geography of the maritime boundary. He also mentioned that diplomatic influence helped solidify Nigeria's interest over the vast expanse of seabed and subsoil.

The secretary of the Committee, Aliyu Omar, remarked that the Extended Boundary is almost five (5) times the size of Lagos State. He also stated that the country has the option to either accept the area gained and finalize registration with the UN or acquire more data towards making a revised submission for further consideration by the UN

K. Nigeria Commissioned a New Floating Production, Storage and Offloading (FPSO) Vessel

The Vice President of Nigeria, Kashim Shettima (the "Vice-President") commissioned the launch of a new Three Hundred and Fifteen Million United States Dollars (US$315,000,000.00) floating, production, storage and offloading vessel (the "Vessel") owned by Oriental Energy Resources Limited. The Commissioning took place at the Drydocks World Dubai Shipyard in Dubai, the United Arab Emirates.²⁰

The Vessel, named ENEM FPSO, has a storage capacity of one million (1,000,000) barrels of oil. It is scheduled to commence operation with an initial production capacity of seventeen thousand barrels per day (17,000bpd) of oil before increasing same to thirty thousand barrels per day (30,000bpd). The Vessel will be deployed to the Okwok Oil Field and is projected to commence operations in the first half of 2025, with the aim of bolstering the country's oil sector.

The Vice President stated that the commissioning of the Vessel is beyond a technological achievement as it is a symbol of Nigeria's ambition and readiness to meet global energy demands. The Vice-President also lauded the Executive Chairman of Oriental Energy Resources Limited, Muhammadu Indimi, for his remarkable contributions to the country's energy industry.

The Borno State Governor, Professor Babagana Zulum, commended Muhammed Indimi's vision and tenacity, expressing that the investment in the Vessel would stimulate economic growth and create job opportunities for many Nigerians, as well as ensure steady growth and development of the nation's economy.

It is envisaged that upon commencement of operation, the Vessel will enhance the country's oil sector and contribute to the government's ambition of increasing oil revenue to fund Nigeria's development.

L. NIMASA Set to Disburse the Cabotage Vessel Financing Fund ("CVFF")

NIMASA, via its marine notice releases, in November 2024 invited duly licenced deposit money banks, local and foreign development financial institutions (the "Financial Institutions") to apply for accreditation as Primary Lending Institutions ("PLIs") under the Cabotage Vessel Financing Fund (the "CVFF") for the inaugural round of disbursements slated to take place in the early part of 2025. Interested Financial Institutions were required to submit their expression of interest to the Director-General of NIMASA on or before December 3, 2024, sequel to which the NIMASA would evaluate the applications and shortlist the qualified Financial Institutions.

Among other functions, the PLIs are to liaise with NIMASA to determine the Risk Acceptance Criteria for applicants in utilizing the CVFF via direct disbursements and/or by issuing guarantees. The PLIs are to participate in providing counterpart financing for the specific transaction(s) and to bear the entire credit risk of the transaction. The PLIs are also required to adequately structure and secure the Joint Lenders' (CVFF and the PLIs) exposure to beneficiaries.

Over nine (9) leading Financial Institutions (with shipping finance experience and good financial standing) submitted expressions of interest to act as PLIs under the CVFF.

M. Resurgence in Piracy and Maritime Offences

There has been a resurgence in the incidents of piracy and armed robbery in some parts of Nigeria's waterways in 2024. On January 1, 2024, pirates attacked the Hana 1, a small chemical tanker sailing through the waters of Equatorial Guinea and kidnapped nine (9) crew members²¹. Also, the IMB third quarter (Q3) 2024 Piracy Report highlighted that twelve (12) incidents were reported in the Gulf of Guinea region from January to September 2024, with eleven (11) crew members kidnapped and twenty-one (21) taken hostage. ²²

Additionally, between July and September 2024, there were seventy-nine (79) incidents of pirates' attacks and abduction of boat passengers in the Bonny waterways, Rivers state. The report also recorded that of the sixty-two (62) vessels boarded, six (6) were hijacked, nine (9) faced attempted attacks, and two (2) were fired upon. The report further stated that in eighty-six percent (86%) of the incidents, perpetrators successfully gained access to the vessels, with most incidents occurring at night.

Although there was a decrease in reported incidents in 2024, there is still an urgent need to improve the maritime security measures in the country.

N. Fluctuations in Currency Exchange Rates

The foreign exchange rate system has undergone significant changes. In February 2024, the Central Bank of Nigeria ("CBN") announced that a more liberalized, market-driven forex regime will be promoted in the country.²³ Particularly, the CBN announced that it will no longer float the Naira against the United States Dollars, leaving the currencies to hedge their value based on market forces. There was also the removal of any cap on the spread between buying and selling prices of currencies in the interbank foreign exchange market. This has led to over sixty percent (60%) increase in Dollar value against Naira.

These macroeconomic changes have impacted the cost of all imports, including raw materials for manufacturers, pharmaceutical products, machineries, energy products, and petroleum products. Unfortunately, not only will the cost of importation and exportation skyrocket, but this may also give leeway for smuggling and other illegal activities.

O. The Nigerian Navy's Commitment to Combat Oil Theft

The Nigerian Navy has reiterated its commitment to the fight against crude oil theft in Nigeria. In October 2024, twenty-three (23) illegal refinery sites, thirty (30) ovens, twenty-six (26) reservoirs, seventy-seven (77) sacks, nineteen (19) dug out pits, twenty-one (21) wooden boats, four (4) jerry cans, two (2) pumping machines, large quantities of crude oil and AGO were successfully recovered during various operations carried out by the Nigerian Navy.

Rear Admiral J.U Okeke, Commandant of Headquarters Joint Task Force South Operation Delta State, reported an eighty-five percent (85%) drop in crude oil theft and illegal refinery activities in Q2 and Q3 of 2024, resulting in increased crude oil output from about one million, five hundred thousand barrels per day (1,500,000bpd) in June 2024 to about one million, seven hundred thousand barrel per day (1,700,000bpd).²⁴

Notably, Rivers State has pledged six (6) gunboats to the Nigerian Navy as part of its efforts to help combat oil theft which has plagued the region. ²⁵

Furthermore, the operatives of the Commandant General's Special Intelligence Squad of the Nigeria Security and Civil Defence Corps ("NSCDC") confirmed that they had arrested five (5) suspects for involvement in illegal dealings and siphoning crude oil from the flowline.²⁶ Exhibits recovered include large quantities of siphoned crude oil inside the dug pit, nylons, sacks, drums, and jerry cans. Others are industrial hoses used for illegal connection activities, buckets, funnels, shovels, and other materials used for illegal activities.

The Commandant-General of the NSCDC, Ahmed Audi, announced that the NSCDC, on its part, had arrested five hundred and seventy-one (571) suspected vandals and destroyed seventy-one (71) illegal refineries nationwide in 2023. He added that of the arrested persons, five hundred and twelve (512) were being prosecuted and that others had been convicted and were serving various jail terms.

It is interesting to note that the Bill seeking to establish a Nigerian Maritime Security Trust Fund ("NMSTF") for the reinforcement of security on Nigerian waters and for the optimal operationalization of the maritime security architecture is yet to be finalized. The NMSTF will be deployed for training, providing security equipment and related facilities, enhancing the skills of personnel of the Navy, and for related matters.

P. The Nigerian Maritime Law Association Sets up committee to review the Admiralty Jurisdiction Act and the Admiralty Jurisdiction Procedure Rules

The Nigerian Maritime Law Association ("NMLA"), the Nigerian Chapter of the Comité Maritime International (CMI), recently set up a committee (the "Committee") to review the Admiralty Jurisdiction Act 1991 ("AJA") and the Admiralty Jurisdiction Procedure Rules 2023 ("AJPR 2023"). The review is currently in progress and is intended to proffer custom recommendations to update the AJA and AJPR 2023 in line with international maritime best practices.

It is imperative to note that earlier in 2020, the NMLA had similarly set up a committee and the recommendations led to the repeal of the Admiralty Jurisdiction Procedure Rules 2011 in favour of the AJPR 2023.

Q. Legislative Tracker

In a bid to further revolutionize the Industry, some new legislative Bills are presently under the consideration of the National Assembly. These include the Nigerian Coast Guard (Establishment) Bill, 2024, the Nigerian Blue Economy Commission (Establishment) Bill 2024, the Nigerian Shipping, Port Economic Regulatory Agency Bill 2023, the NIMASA Act (Amendment) Bill 2023, and the Marine Corp Bill 2024.

Notably, due to the emergence of the new government administration in 2023 the earlier pending legislative bills had to be re-introduced for consideration by the new legislative. There was no new presidential-assented legislation in the maritime sector in 2024.

(i) The Nigerian Coast Guard (Establishment) Bill, 2024

The Nigerian Coast Guard (Establishment) Bill, 2024 (the "Coast Guard Bill") is currently under consideration by the Senate Chambers of the National Assembly. The bill, sponsored by Senator Wasiu Eshinlokun of the Lagos Central Senatorial District, aims to establish the Nigerian Coast Guard under the Marine Ministry, to be charged with the responsibility of securing maritime zones within Nigeria. The Coast Guard will be tasked with the duty of ensuring maritime safety, environmental protection, and enforcing civil maritime laws²⁷, and would also act as a specialized support service to the Nigerian Navy, particularly during wartime, thereby enhancing the country's overall defence capabilities.

The Bill has passed the second reading at the Senate chambers and is currently at the committee stage. On December 5, 2024, the Senate Committee on Marine Transport conducted a public hearing of the Bill. During the public hearing, the Marine Minister noted that the country's coastline stretches eight hundred and fifty-three (853) kilometers, with ten thousand kilometres (10,000km) of inland waterways, and that these resources are rich and diverse but face threats from pollution, overfishing, and unregulated development. The Marine Minister explained that the Nigerian Coast Guard will complement the efforts of the Nigerian Navy by focusing on search and rescue, environmental protection, and the enforcement of civil maritime laws.

On the other hand, the Chief of Naval Staff of the Nigerian Navy represented by the Chief of Training and Operations, Rear Admiral Olusegun Ferreira, contended against the establishment of a Coast Guard with overlapping military powers. He further cited redundancy, potential security risks, resource constraints, and misalignment with global best practices as other concerns necessitating the opposition to the Bill.

We await the resolution of the Senate at the third reading of the Bill.

(ii) Nigerian Shipping and Port Economic Regulatory Agency Bill 2023

The House of Representatives of the National Assembly has passed the Nigerian Shipping and Port Economic Regulatory Agency Bill 2023 (the "NSPERA Bill"). The NSPERA Bill is set to be transmitted to the Senate of the National Assembly for deliberation and passage into law and ultimate Presidential assent.

The NSPERA Bill essentially seeks to repeal the NSC Act and aims to establish a more robust and effective regulatory shipping framework. It aims to make legislative provisions formalizing the FGN Gazette of 2015 that empowers the NSC as the Port Economic Regulator. Particularly, the NSPERA Bill proposes the establishment of the Nigeria Shipping and Port Economic Regulatory Agency ("NSPERA") with broad powers such as the power to set and enforce service standards, tariffs, and licensing requirements for regulated service providers (such as stevedoring, cargo handling, freight forwarding, haulage, terminal operations, etc.) in the Nigerian maritime sector²⁹.

NSPERA will be saddled with the duty of advising the FGN on matters relating to trade facilitation, concession agreements, transport facilities, the structure of freight rates, availability and adequacy of shipping space, port charges, haulage rates, and other matters related thereto. It will also be empowered to issue and review regulations and guidelines to implement the provisions of the NSPERA Bill, set standard operating procedures for regulated service providers to streamline operations, enhance regulatory compliance, and facilitate the seamless flow of goods.

It is however envisaged that a bottleneck to the operations of NSPERA is that its powers and intended functions will overlap with the functions of NIMASA, Nigeria Customs Service, NPA, Federal Competition and Consumer Protection Commission, among others. Although the Bill has catered for any potential conflicts between NSPERA and other regulatory agencies by providing for an overriding provision of the Bill, the complementarity of the Bill with other existing laws may nevertheless still pose a challenge.³⁰

(iii) NIMASA Act (Amendment) Bill 2023

The Senate of the National Assembly is in the process of amending the NIMASA Act. Particularly, the NIMASA Act (Amendment) Bill (the "NIMASA Bill") is currently in the Senate's Committee stage of legislative enactment.

The NIMASA Bill seeks to modify certain provisions of the extant NIMASA Act³¹. It also seeks to make shipping registration in Nigeria an open process to attract patronage from both local and international vessels.

The NIMASA Bill also seeks to empower NIMASA with quasi-judicial powers by imposing fines on maritime security offenders without necessarily resorting to judicial proceedings. However, given the principle of fair hearing, the feasibility of this is highly unlikely.

The Bill also intends to ensure financial autonomy for the country's maritime administration. Notably, the Bill seeks to update terminologies such as 'Free on Board (FOB)' with 'Cost, Insurance, and Freight (CIF)' towards aligning with contemporary practices.

At the public hearing of the Bill in June 2024, the Director-General of NIMASA, Dr. Dayo Mobereola, commended the Senate for coming up with the proposed legislation, which he described as being in accordance with international best practices. However, the Chief of Naval Staff, Vice Admiral Emmanuel Ogalla, in his speech on the occasion, raised concerns on behalf of the Nigerian Navy on the provisions of the Bill mandating NIMASA to provide security as such provisions could result in conflicts on responsibilities between NIMASA and the Navy.

The House of Representatives of the National Assembly has expressed its willingness to also actively ensure the NIMASA Bill is passed into law in as timely as possible.³²

(iv) Marine Corp Bill 2023

The member of the House of Representatives of the National Assembly representing the Yakurr/Abi constituency of Cross River State has sponsored the Marine Corp Bill (the "Marine Corp Bill"), which seeks to establish the Nigerian Marine Corps towards promoting maritime security. The Marine Corp Bill is currently in the Committee stage, and under the consideration of the House Committee on Navy.

Essentially, the Marine Corp Bill seeks to create a new federal body tasked with maritime law enforcement and defence responsibilities traditionally managed by the Nigerian Navy and other existing agencies, such as NIMASA. The public hearing of the Marine Corp Bill was conducted in November 2024 where it faced outright rejection. During the public hearing, members of the House of Representatives vehemently opposed the Bill. Honourable Philip Agbese representing Ado/Okpokwu/Ogbadibo Federal Constituency of Benue State, speaking on behalf of some sixty-six (66) other legislative members, contended that the new Marine Corp sought to be established would only result in significant overlap, redundancy, and logistical strain.

It would also create operational inefficiencies and impose unwarranted financial demands on the government. The Nigeria Police Force, ably represented by Superintendent Nandom Vongjen, also described the Marine Corp Bill as ill-advised, stressing that it would not only lead to duplication of duties, but also result in the proliferation of maritime security outfits.

The Marine Corp Bill has been severely criticized across various quarters. Upon the conclusion of the public hearing, we await the resolution of the House of Representatives.

R. Notable Judicial Decision(s)

On January 5, 2024, the Supreme Court delivered a significant judgement in the case of NATIONAL INLAND WATERWAYS AUTHORITY & 3 ORS V. LAGOS STATE WATERWAYS AUTHORITY & 5 ORS - APPEAL NUMBER: SC. 17/2018, inter alia,  the Supreme Court decided the question: whether the State and FGN enjoy concurrent jurisdiction to make laws concerning inland waterways, being an item under the exclusive list of the 1999 constitution of the FRN (as amended).

The Supreme Court affirmed that the control of activities on the nation's inland waterways, including levying and licensing operators in the sector, belongs exclusively to the FGN. In the judgment written by Justice John Okoro and read by Justice Emmanuel Agim, the apex court held that it was unlawful and illegal for States to seek to control the sector and impose levies on businesses operating in the nation's inland waterways. Thus, state governments do not have legislative and regulatory competence on the country's inland waterways.

S. Continued Maritime Law & Practice Education for the Judiciary

In July 2024, the NSC (in collaboration with the National Judicial Institute ("NJI") and the NMLA) held its seventeenth (17th) International Maritime Seminar for Judges in Abuja. Judges from all Nigerian courts with shipping jurisdiction (Federal High Court, Court of Appeal and the Supreme Court) were invited. Speakers and participants also came from several countries including Ghana, Sierra Leone, Singapore, and South Africa.

In July 2024, the NMLA (in collaboration with the NJI) held the fourth (4th) edition of the Maritime Law & Practice Workshop for Judges. The stellar faculty, made of NMLA members, who are seasoned maritime practitioners, and the participating judges (from Federal High Court and Court of Appeal) had a very engaging time. During one of the sessions, the Chief Judge of the Federal High Court, Hon. Justice John T. Tsoho, OFR, revealed that plans were in the works for the designation of maritime judges in the Federal High Court as provided for in the AJPR 2023.