MARITIME & ADMIRALTY LAW

Obasa & Co. handles complex disputes arising from marine casualties involving vessels and cargo. We handle the full range of admiralty cases coming before the Federal High Courts which under Nigerian Laws have placed exclusive jurisdiction in matters patterning to admiralty matters and also admiralty cases before arbitral tribunals worldwide.

We have proved very effective in securing through the pursuit of interim proceedings the arrest of vessels visiting Nigeria as a means of affording our clients security in their substantive action against the vessel and her owners.

At Obasa & Co. we provide an efficient and expeditious service both to ship owners wising to register vessels in Nigeria and to banks and other financiers wishing to secure lending to Nigerian ship-owning companies and register their securities in Nigeria.

The Law

In Nigeria, Admiralty practices are governed by distinct sets of laws and regulations, most of which are adoptions of International Conventions on laws of the sea. The following are some of the Laws regulating Maritime Practice in Nigeria.

A. The Admiralty Jurisdiction Decree No. 59 of 1991:
This is a comprehensive decree which confers exclusive, original but limited jurisdiction on the Nigerian Federal High Court (a superior court record) to hear all matters relating to propriety or general interest (in rem or in personam) in a shipping, aviation or any maritime claim as specified therein. The jurisdiction as conferred by the Decree applies to all vessels irrespective of their owners and to all maritime claims. Unlike the old law which respects agreement of parties on choice of law, the decree introduce a provision that renders null and void any agreement of parties on choice of law, the decree introduce a provision that renders null and void any agreement by any person or party to any cause, matter or action which seeks to exclude the jurisdiction clause stipulated in any bill of lading ousting the jurisdiction of the Nigeria Federal High Court is rendered ineffective.

• Pre-judgment Security/Counter-Security: A ship or other property may in any proceedings be arrested at any place with Nigeria territorial waters to ensure the satisfaction of the final judgment or to establish jurisdiction. Same can be released after the provision of bail (usually the P & I Club’s letter of undertaking or I.O.U). Under the Admiralty Jurisdiction Procedure Rules 1993 the court may order that the Plaintiff at whose instance the ship or property has been arrested give an undertaking and/or security for costs or posts a bond in the same effect.
• Retention of Security – Where the proceedings are stayed or dismissed on the ground that the claim concerned should be referred to arbitration or determined by the court of a foreign country, the court may order that the ship or property remain in detention. Alternatively, adequate security for the satisfaction of any award made or judgment ordered in the arbitration or proceedings in the court of that foreign country.
• Foreign Currency Clause – The Nigeria Federal High Court can award its judgment in any monetary currency in which any of the currency in which any of the parties has suffered loss or damage.
• Sister-Ship Arrest/Proceedings – In a proceedings in respect of a general maritime claim concerning a ship, the arrest and proceedings thereof could be made against a sister ship.

B. The Admiralty Jurisdiction Procedure Rules 1993
This governs the procedures of admiralty proceedings in Nigeria (whether in rem or in personam) in the Federal High Court.

C. The Merchant Shipping Act, Cap 224 Laws of the Federation of Nigeria 1990
This is an act which covers all matters relating to merchant shipping and for matters incidental thereto or connected therewith.

D. The carriage of Goods by Sea Act 44 of Laws of the Federation 1990
This Act makes provisions in respect of the carriage of goods by sea as it relates to bills of lading. The Act adopts the Hague Rues and gives it the force of law in Nigeria with a view to established the responsibilities, liabilities, rights and immunities attending to carriers under bills of lading. Consequently, every bill of lading or similar document of title issued in Nigeria is made subject to the provisions of the Hague Rules and applied by this Act.

E. Marine Insurance Act 1961 – This Act provides for marine insurance and prohibits gambling on loss by Maritime perils consequent on, or incidental to the navigation of the Sea.

F. Nigerian Ports Act 1993 – Incorporation of a Federal Government Company, known as the Nigerian Ports Plc with the statutory duty of providing and operating in Nigerian Port, port facilities that will serve public interest and also maintain, improve and regulate the use of ports.