Coastal and Inland Shipping (Cabotage) Act, 2003 – Review Flashcards

Flashcards cover definitions, restrictions, waivers, licensing, registration, enforcement, offences, financing fund, and miscellaneous provisions of Nigeria’s Coastal and Inland Shipping (Cabotage) Act, 2003.

What is the primary purpose of the Coastal and Inland Shipping (Cabotage) Act, 2003?

To restrict the use of foreign vessels in Nigeria’s domestic coastal trade, promote indigenous tonnage, and establish the Cabotage Vessel Financing Fund.

On what date was the Cabotage Act assented to by the President of Nigeria?

30 April 2003.

How does the Act define “coastal trade” or “cabotage”?

Carriage of goods or passengers, or other commercial marine activities, between points in Nigeria or above Nigerian waters, including activities linked to mineral resource exploration and exploitation.

What is a “Nigerian vessel” under the Act?

A vessel registered in Nigeria that meets the ownership or charter conditions in section 23(1) or (2).

What constitutes a “wholly-owned Nigerian vessel”?

A vessel with 64 shares beneficially owned by Nigerian citizens or a 100 % Nigerian-owned company, free of any trust in favour of non-Nigerians.

What does “vessel wholly manned by Nigerians” mean?

All shipboard officers and crew are Nigerian citizens.

Section 3 restriction: Which vessels may engage in domestic coastal carriage of cargo or passengers?

Only vessels that are wholly owned, built and manned by Nigerian citizens and registered in Nigeria.

Section 4 restriction: When may a non-Nigerian tug tow within Nigerian waters?

Only when rendering assistance to persons, vessels or aircraft in danger or distress; otherwise towage is reserved for Nigerian-owned tugs.

Section 5 restriction: Who can carry materials or supplies to oil rigs or platforms in Nigerian waters?

Only tugs, barges or other vessels whose beneficial ownership is wholly Nigerian.

Section 6 restriction: Who may trade on Nigeria’s inland waters?

Only vessels wholly owned by Nigerian citizens.

What rebuilding condition must a vessel meet to qualify for cabotage services (Section 7)?

All major hull and superstructure work must be carried out in Nigeria unless the vessel is forfeited to government or taken as a war prize.

Name one circumstance in Section 8 where a foreign vessel may operate despite the restrictions.

Salvage operations beyond Nigerian capacity; marine pollution emergencies; approved ocean research; or foreign-government-sponsored scientific research with consent.

When may the Minister grant a waiver on Nigerian ownership (Section 9)?

When no suitable and available wholly Nigerian-owned vessel can provide the requested service.

When may a manning waiver be granted (Section 10)?

When no qualified Nigerian officer or crew is available for the specified position.

When may a Nigerian-built waiver be granted (Section 11)?

When no Nigerian shipyard has the capacity to build the required vessel type and size.

Maximum duration of any waiver under the Act?

One (1) year.

Section 12 order of preference when granting waivers: what minimum Nigerian equity is required in a joint venture?

At least 60 % held by Nigerian citizens, free of any trust for non-Nigerians.

Section 15: List two key conditions before a foreign vessel can obtain a restricted cabotage licence.

(1) Circumstances in Sections 9-12 apply; (2) vessel is eligible for Nigerian registration; (3) owning company has a Nigerian representative office; (4) all duties, levies and tariffs paid; (5) valid international certificates; (6) meets safety and pollution standards. (Any two).

How long can a cabotage licence issued to a foreign vessel remain valid?

Not more than one (1) year or the validity of the referenced certificate, whichever is shorter.

What must be carried on board every licensed foreign vessel at all times?

The cabotage licence issued under Section 15(4).

Under Section 18, give one ground on which the Minister may suspend or cancel a licence.

Conviction of the owner or master for a navigation/shipping offence; breach of licence terms; or national/public interest considerations.

What document houses cabotage-eligible vessels?

The Special Register for Vessels and Ship-Owning Companies engaged in Cabotage.

Name three types of vessels explicitly eligible for cabotage registration (Section 22(5)).

Passenger vessels, crew boats, bunkering vessels, fishing trawlers, barges, offshore service vessels, tugs, AHTS vessels, FPSOs, dredgers, tankers, carriers, etc. (any three).

Minimum Nigerian shareholding for a company-owned cabotage vessel (Section 23(1)(c))?

At least 60 % of shares owned by Nigerian citizens.

Give two documents the Minister may require to prove true ownership of a vessel (Section 24).

Last certificate of registration, bill of sale, share certificates, sworn affidavit of ownership, or statutory declaration of shareholding. (Any two).

Citizenship requirement for ship financing (Section 26).

Charterer or mortgagee must meet the Nigerian citizenship requirements for coastal trade; vessel under charter for at least 3 years; affidavit that financing is purely financial investment.

Temporary registration rule for foreign vessels under contract (Section 27).

They may obtain temporary Nigerian registration for the duration of the specific contract.

Age limit transition clause (Section 28).

Existing Nigerian-registered vessels over 15 years may trade for up to 5 years post-commencement if certified seaworthy.

What body creates the Cabotage Act enforcement unit?

The National Maritime Authority (NMA) under the Minister’s directive.

List two powers of an enforcement officer (Section 31).

Stop and board a vessel; detain vessel or officers; search with or without warrant; inspect logbooks; require information; enlist Navy, Customs, Police assistance. (Any two).

When can an enforcement officer make a detention order without a court order?

If exigent circumstances exist and there are reasonable grounds to believe an offence has been committed (Section 32).

Port clearance requirement (Section 33).

No port clearance for a vessel in domestic trade unless it holds the required licence or waiver.

Penalty for contravening Sections 3-6 (unlicensed coastal trade).

Fine of at least ₦10 million and/or forfeiture of the vessel.

Penalty for operating without a licence under Section 21.

Fine of at least ₦15 million and/or forfeiture of the vessel.

What court has jurisdiction over offences under the Cabotage Act?

The Federal High Court (Section 41).

What is the Cabotage Vessel Financing Fund (CVFF)?

A fund established to provide financial assistance and promote indigenous ship acquisition capacity (Section 42).

Name two sources of money paid into the CVFF (Section 43).

2 % contract surcharge on coastal trade, National Assembly appropriations, tariffs/fines/licence fees, interest and loan repayments. (Any two).

Who can benefit from the CVFF?

Nigerian citizens and shipping companies wholly owned by Nigerians (Section 45).

Under Section 46, what can the Minister do to implement the Act?

Make regulations prescribing criteria, fees, record-keeping, payment methods, and any other matters necessary for administration.

What documents must always be carried on board under Section 47?

All licences, waivers, approvals or permits issued under the Act.

What emergency power does Section 48 give the Minister?

To requisition cabotage-registered vessels to provide essential services during economic crises or national emergencies.

When did enforcement of the Act actually begin?

On the first anniversary of its commencement—one year after it came into force (Section 51).