[An Act to restrict the use of Foreign vessels in Domestic Coastal trade to promote the Development of Indigenous Tonnage and to establish a Cabotage Vessel Financing Fund; and for related matters]
Arrangement of Sections
PART 1 - Short title and Interpretation
PART II - Restriction of vessels in Domestic Coastal Trade
5. Carriage of petroleum products and ancillary services.
6. Navigation in inland waters.
8. Application to foreign vessels.
PART III - Waivers
9. Waiver on wholly Nigerian ownership.
10. Waiver on manning requirement.
11. Waiver on Nigerian built vessels.
12. Order for granting of waiver.
14. Ministers to issue guidelines on waivers.
PART IV - Licence to Foreign Vessel
15. Grant of licence to foreign vessels and conditions.
16. Terms and conditions of Licence.
18. Suspension, cancellation and variation of Licence.
20. Minister to issue guidelines on Licence.
21. Operating without Licence.
PART V - Registration
26. Citizenship requirement for ship financing.
PART VI - Enforcement
30. Enforcement unit and officers.
31. Power of enforcement officers.
33. Port clearance to vessels.
34. Publishing requirements for employment of vessels.
PART VII - Offences
35. Offences against this Act.
36. Failure to comply with a requirement etc. of an enforcement officer.
37. False misleading statements.
39. Liability of ship owners, companies and officers.
40. Strict liability and general penalty.
PART VIII - Cabotage Vessels Financing Fund
42. Cabotage Vessel Financing Fund.
44. Collection, etc. of the Fund.
PART IX - Miscellaneous
47. Licences, waivers on board.
48. Requisition of vessels by Minister.
52. Vessels with valid licence.
55. Savings as to Court Proceedings.
SCHEDULE
Repeals and Amendment
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COASTAL AND INLAND SHIPPING (CABOTAGE) ACT
An Act to restrict the use of Foreign vessels in Domestic Coastal trade to promote the Development of Indigenous Tonnage and to establish a Cabotage Vessel Financing Fund; and for related matters
[30th April, 2003] [Commencement.]
PART I - Short title and Interpretation
1. Short title
This Act may be cited as the coastal and inland shipping (Cabotage) Act, 2003.
2. Interpretation
In this Act -
"cargo" means goods carried in or on a vessel whether or not of commercial value and includes livestock;
"coastal trade" or "cabotage" means-
(a) The carriage of goods by vessel, or any other mode of transport, from one place in Nigeria or above Nigeria waters to any other place in Nigeria or above Nigeria waters, either directly or via a place outside Nigeria and includes the carriage of goods in relation to the exploration, exploitation or transportation of the mineral or non-living natural resources of Nigeria whether in or under Nigerian waters;
(b) The carriage of passengers by vessel from any place in Nigeria situated on lake of river to the same place, or to any other place in Nigeria, either directly or a place outside Nigeria to the same place without any call at any port outside Nigeria or to any other place in Nigeria, other than as an in transit or emergency call, either directly or via a place outside Nigeria;
(c) The carriage of passengers by vessel from any place in Nigeria to any place above or under Nigerian waters to any place in Nigeria, or from any place above Nigerian waters to the same place or to any other place above or under Nigerian waters where the carriage of the passengers is in relation to the exploration, exploitation or transportation of the mineral or non -living natural resources in or under Nigerian waters; and
(d) The engaging, by vessel, in any other marine transportation activity of a commercial nature in Nigerian waters and, the carriage of any goods or substances whether or not of commercial value within the waters of Nigeria;
"enforcement officer" means a person so designated to be an enforcement officer for the purpose of this Act;
"enforcement unit" means the department within the national maritime Authority charge with the responsibility of enforcing the provisions of this Act;
"Exclusive Economic Zone" has the meaning given to it under the Exclusive Economic Zone Act, Cap. E17 116, Laws of the Federation of Nigeria 2004;
"foreign vessel" means a vessel other than a Nigerian vessel;
"hull" means the shell, or outer casting, and internal structure below the main deck which provide both the floatation envelope and structural integrity to the vessel in its normal operation;
"in-transit call" means any call, other than an emergency or technical call, by a vessel at any place where passenger go ashore temporarily but re-board the vessel before the vessel leaves that place or are transported by land to another location to re-board the same vessel and include cargo not discharged at the transit call;
"inland waters" has the meaning given to it under the national inland waterways Authority Act, 1997;
"licence" means a document issued pursuant to the Act, authorising a foreign ship or vessel to be registered for participation in the coastal trade while in Nigerian waters;
"master" in relation to a vessel has the same meaning as in the merchant shipping Act, Cap.M11 , Laws of the Federation of Nigeria 2004;
"Minister" means the head of the ministry for the time being charge with the responsibility for matters relating to Shipping and "Ministry" has the corresponding meaning;
"Nigerian citizen" means a citizen of Nigeria as defined in the Nigerian Constitution;
"Nigerian vessel" means a vessel which is registered in Nigeria and has the meaning given to it in section 23(1) or (2);
"Nigerian waters" shall include inland waters, territorial waters or waters of the exclusive Economic Zone (respectively, together or any combination thereof) and the meaning given to them by the National Inland Watersways Authority Act, 1997;
"owner" in relation to a vessel, includes the person having for the time being, either by law or by contract ,the right of the owner of the ship as regards the possession and use thereof;
"place above Nigerian waters" in the context of coastal trade includes any vessel, offshore drilling unit, production platform, artificial island, subsea installation, pumping station, living accommodation, storage structure, loading or landing platform, dredge, floating crane, pipe laying or other barge or pipeline and any anchor cable or rig pad used in connection therewith;
"superstructure" means the main deck and any other structural part above the main deck;
"Territorial waters" have the meaning given to it under the Territorial Waters (Amendment) Act 1998;
"vessel" includes any description of vessel, ship, boat, hovercraft or craft, including air cushion vehicles and dynamically supported craft, designed, used or capable of being used solely or partly for marine navigation and used for the carriage on through or under water of persons or property without regard to method or lack of propulsion;
"vessel built in Nigeria" means where all the major component of its hull and superstructure are fabricated in Nigeria or assembled entirely in Nigeria;
"vessel wholly manned by Nigerians" means where all the shipboard officers and crew employed aboard the vessel is exclusively of Nigerian citizens;
"wholly owned Nigerian vessel" means a vessel which is owned and registered in Nigeria whose 64 shares are beneficially owned by Nigerian citizens or a company registered in Nigeria with 100 per centum of its share capital beneficially owned by Nigerian citizens and the share in the vessel and the ship owning company shall be held by Nigerian citizens free from any trust or obligation in favor of non-Nigerians.
PART II - Restriction of vessel in Domestic Coastal Trade
3. Prohibition
A vessel other than a vessel wholly owned and manned by a Nigerian citizens, built and registered in Nigeria shall not engage in the domestic coastal carriage or cargo and passengers within the Coastal Territorial Inland Waters, Island or any point within the waters of the Exclusive Economic Zone of Nigeria.
4. Restriction on towage
5. Carriage of petroleum products and ancillary services.
A vessel tug or barge of whatever type other than a vessel, tug and barge whose beneficial ownership resides wholly in a Nigerian citizen shall not engage in the carriage of materials or supply services to and from oil rig, platforms and installations whether offshore or onshore or within any ports or points in Nigerian waters.
6. Navigation in inland waters
A vessel of whatever type or size shall not engage in domestic trading in the inland waters of Nigeria except as a vessel that is wholly owned by Nigerian citizens.
7. Rebuilt vessels
8. Application to foreign vessels
(a) engaged in salvage operation is determined by the minister to be beyond the capacity of Nigerian owned and operated salvage vessels and companies;
(b) engaged with the approval of the Minister or any other relevant Government agency in activities related to a marine pollution emergency or to any threatened risk thereof ;
(c) engaged in any ocean research activity commissioned by the Department of Fisheries or any other department of the Government responsible for such research; or
(d) operated or sponsored by a foreign Government that has sought and received the consent of the Minister of Foreign Affairs to conduct Marine Scientific Research.
PART III - Waivers
9. Waiver on Wholly Nigerian Ownership
The Minister may on the receipt of an application grant a waiver to a duly registered vessel on the requirement for a vessel under this Act to be wholly owned by Nigerian citizens where he is satisfied that there is no wholly Nigerian owned vessel that is suitable and available to provide the services or perform the activity described in the application.
10. Waiver on manning Requirement
The Minister may on the receipt of an application grant a waiver to a duly registered vessel on the requirement for a vessel under this Act to be wholly manned by Nigerian citizens where he is satisfied that there is no qualified Nigerian officer or crew for the position specified in the application.
11. Waiver on Nigerian built Vessels
12. Order for granting of waivers
Where the circumstances described in Sections 9-11 apply, and the Minister has determined that a waiver be granted, the order for granting the waiver shall be -
(a) in the first instance, to a shipping company and vessels owned by a joint venture arrangement between Nigerian citizens and non-Nigerians-
(b) in the second instance, to any vessel registered in Nigeria and owned by a shipping company registered in Nigeria provided that the applicant shall comply with all the relevant provisions of this Act.
13. Duration of a waiver.
A waiver granted under this Act shall specify the period of time for which it shall be valid, which period shall not in any circumstance exceed one (1) year.
14. Minister to issue guidelines on waivers
PART IV - Licence to Foreign Vessel
15. Grant of licence to foreign vessels and conditions
(a) any of the circumstances in sections 9-12 is applicable;
(b) the foreign owned vessel is eligible to be registered in Nigeria;
(c) the owning company of the foreign vessel has a representative office in Nigeria;
(d) all applicable duties, levies and tariffs imposed by the relevant authorities applicable to foreign vessels with respect to its participation in the Coastal Trade have been paid.
(e) the foreign vessel possess all certificates and documents in compliance with international and regional maritime conventions whether or not Nigeria is a party to the conventions and that such certificates and documents are current and valid; and
(f) the foreign vessel meets all safety and pollution requirements imposed by Nigerian law and any international conventions in force.
16. Terms and conditions of licence
(a) the service or foregoing that is to be performed by the foreign vessel to which the license relates; and
(b) The place or places where the foreign vessels may perform that service or activity.
17. Duration of licence
A license issued pursuant to section 15 to a foreign vessel shall set out the period of time for which it is valid, which period shall not exceed one (1) year or the term of any certificate or the document referred to in section 15(1)(e) provided that the license term shall not in any circumstance exceed one year.
18. Suspension, cancellation and variation of licence.
The Minister may by order, suspend or cancel a licence or vary the terms and conditions of a licence where-
(a) the owner or master of the licensed vessels is convicted of an offence under this or any other Act of the National Assembly relating to navigation or shipping;
(b) there has been a contravention of or failure to comply with any term or condition to which the licence is subject to ; or
(c) it is expedient to cancel, suspend or vary the license or permit for reasons of national or public interest.
19. Tarriff on licence
Where it is deemed expedient to grant a licence in conformity with the provision of this Act, the Minister shall impose a tariff on the vessel as a condition for granting the waiver.
20. Minister to issue guidelines on licence
The Minister shall immediately after the commencement of this Act, establish and publish the criteria and guidelines for the issuance of licences under this Act.
21. Operating without licence
A foreign owned and foreign-crewed vessels shall not participate in the domestic coastal trade without the license and authorization required by the provisions of this Act.
PART V - Registration
22. Registration
(a) passenger vessels;
(b) crew boats;
(c) bunkering vessels;
(d) fishing trawlers;
(e) barges;
(f) off-shore service vessels;
(g) tugs;
(h) anchor handling tugs and supply vessels;
(i) floating petroleum storage;
(j) dredgers;
(k) tankers;
(l) carriers; and
(m) any other craft or vessel used for carriage on, through or underwater of persons, property or any substance whatsoever.
23. Ownership requirements
(a) the vessel is wholly and beneficially owned by Nigerian citizens or by a company wholly and beneficially owned by Nigerian citizens and a vessel or company is wholly and beneficially owned by Nigerian citizens where all the shares in the vessel and the company are held by Nigerian citizens free from any trust or obligation in favour of any person not a citizen of Nigeria;
(b) the vessel is on bareboat charter to Nigerian citizens and is under the full control and management of Nigerian citizens or a company wholly and beneficially owned by Nigerians in terms of subsection (1)( a);
(c) the vessel is owned by a company registered in Nigeria and the percentage of shares in the company owned by Nigerian citizens is not less than 60 per centum;
(d) any foreign vessel is licenced in compliance with Part II of this Act;
(e) the vessel is exclusively manned by officers and crew of Nigerian citizenship except where Section 10 applies; and
(f) the vessel possesses all certificates and documents in compliance with international and regional maritime conventions to which Nigeria is a party including all safety and pollution requirements imposed by a Nigerian law and any international convention in force.
24. Proof of ownership
In the performance of his duties under this part, the Minister shall take due care and carry out adequate investigation to ascertain the true ownership of vessels and ship owning companies and shall issue guidelines for determination thereof which shall include-
(a) the last certificate of registration of the vessel;
(b) the bill of sale;
(c) the ownership of shares in the company applying to be registered;
(d) the apportionment of shares in the vessel;
(e) a certificate under oath sworn to in a court of superior records by the owner, its duly authorized officer or agent establishing that such applicant has complied with the condition of this Act; and
(f) affidavit or statutory declaration by the owners of the owning company sworn to in a court of superior records stating their shares and the capacity in which the shares are held; and
(g) such further requirements as the Minister may specify.
25. Deletion from Registry
Any vessel registered, granted a licence or permit in accordance with the provisions of this Act shall be deleted from the registry where it is determined that-
(a) a subsequent change in the ownership structure of the vessel or the owning company as the case may be has contravened the provisions of this Act under which the vessel was registered and the relevant provisions of the Merchant Shipping Act; or
(b) the required certification and documentation has expired or it is no longer eligible for registration under the Merchant Shipping Act or under this Act.
26. Citizen requirement for ship financing
(a) the vessel shall be under charter for a term not less than three years;
(b) the charterer or mortgagee shall meet the citizenship requirement for operating vessels in the domestic coastal trade under Parts II and IV of this Act.
27. Temporary registration
The Minister shall immediately after the commencement of this Act issue regulations and guidelines which shall permit foreign owned vessels engaged in the domestic trade, a temporary registration in the Nigerian Registry, which registration shall cover the duration of the contract for which the vessels are employed.
28. Age of Vessels
Any vessel registered under this Nigerian Registry at the date of coming into force of this Act and who is over 15 years old shall continue to be eligible for participation in the coastal trade for a period of five years after the commence of this Act provided the vessel possesses a certificate of registry and a certificate of seaworthiness from a recognised classification authority.
PART VI - Enforcement
29. Special Register
30. Enforcement unit and officers
31. Powers of enforcement officers
(a) requiring the owner, master or any person who may have possession of the official log book on the ship, or any other document or paper that may provide evidence of the contravention, to produce, for inspection or for the purposes of obtaining copies thereof or extracts therefrom, the log book or any other document or paper;
(b) require the master of such ship to give such information relating to the ship, cargo, stores, crew, passengers or voyage as he may consider necessary;
(c) require the master or any person found on board the ship to give all the reasonable assistance in the power of the master or any other person, as the case may be, to enable the enforcement officer to carry out the enforcement officer's duties and functions under this Act; and
(d) where necessary enlist the assistance of the Nigerian Customs Service, the Nigerian Navy, the Nigerian Police and any other law enforcement as he may deem necessary.
32. Detention order
33. Port clearance to vessels
Notwithstanding the provisions of any other laws, no port clearance shall be granted to a vessel engaged in domestic coastal shipping unless the owner, charterer, master or agent satisfies the proper customs or such other authority authorised to issue port clearance that the vessel is licensed to engage in domestic shipping or has the prescribed waiver.
34. Publishing requirements for employment vessels
Any person engaged in the business of employing vessels for the domestic coastal trade shall specify and publish all the requirements to be satisfied with respect to the employment of vessels.
PART VII - Offences
35. Offences against this act.
(a) sections 3-6 and is liable on conviction to a fine of not less than N10,000,000.00 and / or forfeiture of the vessel involved in the offence or such higher sum as the court may deem fit;
(b) section 21 and is liable on conviction to a fine of not less than N 15, 000,000.00 and or forfeiture of the vessel or such higher sum as the Court may deem fit and;
(c) section 22 and is liable on conviction to a fine of not less than N 5, 000,000.00
36. Failure to comply with a requirement etc. of an enforcement officer.
Any person who without reasonable excuse, fails to comply with a requirement made, or direction given, by an enforcement officer under this act commits offence and shall on conviction if it is an individual, be liable to a fine not less than N100, 000.00 and shall on conviction if the offence is committed by a body corporate, be liable to fine of not less than N 5, 000,000.00.
37. False or misleading settlements.
(a) Information that is, to the person's knowledge false or misleading particular; or
(b) any document containing information that is, to the person's knowledge false or misleading in a material particular.
38. Deemed separate offence.
When an offence is committed by a vessel under sections 3,4,5,6 and 21 on more than one day or is continued by the vessel for more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued.
39. Liability of ship owners, companies and officers
(a) in the case of a vessel, the shipping company responsible for the vessel or the captain of the vessel shall be deemed to have committed or the offence.
(b) in the case of a ship owning company or a body corporate other than a partnership, every director or an officer of the company or body shall also be deemed to have committed the offence;
(c) in the case of a partnership every partner or officer of that body shall also be deemed to have committed that offence.
(a) a director of the body corporate or other person however described, responsible for the direction, management and control of the body corporate; or
(b) any other person who is concerned in, or takes part in the management of the body corporate and whose responsibilities include duties with respect to the matters giving rise to the offence.
40. Strict liability and general penalty jurisdiction
Any person who contravenes any provision of this Act or any regulations made there under commits an offence and shall no conviction, where no specific penalty is prescribed thereof, be liable to a fine not less than N500,000.00.
41. Jurisdiction
Jurisdiction over the matters and offence referred to in this Act lie with the Federal High Court.
PART VIII - Cabotage Vessel Financing Fund
42. Cabotage Vessel and Financing fund.
43. Funding
There shall be paid into the Fund -
(a) a surcharge of 2 per centum of the contract sum performed by any vessel engaged in the coastal trade;
(b) a sum as shall from time to time be determined and approved by the National Assembly;
(c) monies generated under this Act including the tariffs, fines and fees for licences and waivers;
(d) such further sums accruable to the Fund by way of interests paid on and repayment of the principal sums of any loan granted from the Fund.
44. Collection etc, fund.
The fund shall be collected by the National Maritime Authority and deposited in commercial banks and administered under guideline that shall be proposed by the Minister and approved by the National Assembly.
45. Beneficiaries
The beneficiaries of the Fund shall be Nigerian citizens and shipping companies wholly owned by Nigerians.
PART IX - Miscellaneous
46. Regulations
(a) prescribing the manner or content of applications notice, or any other documentation or information as may be required under this Act;
(b) prescribing the fees payable or the methods for calculating fees and recovering costs in respect of applications for permits, licences, loans and guarantees or other matters under this Act;
(c) prescribing the amount, methods for calculating the amount, and circumstances and manner in which holders of licences and permits shall be able to pay for participation in the domestic coastal trade under this Act;
(d) requiring the holders of permits and licences granted for any activity under this Act to keep records for any purpose under this Act and prescribing the nature of records, information, and returns, and the form, manner, and times in or at which they shall be kept or furnished.
(e) requiring any person engaged in the employment of vessels for the domestic coastal trade to publish their pre-tender qualifications with respect to the desired vessels within a prescribed period; and
(f) providing for any other such matters as are contemplated by, or necessary for giving full effect to this Act and for its due administration.
47. Licence waivers on board.
Licences, waivers, approvals or permits referred to in this Act shall be carried on board the vessel at all times.
48. Requisition of vessels by Minister
The Minister may in times of economic crisis or national emergency, by order compel vessels registered under this Act, to provide essential services to sustain basic needs of people to fulfil existing multi-lateral agreements.
49. Powers of delegation.
50. Units of accounts
51. Transitional Provisions.
The provisions under this Act shall be enforced from the first anniversary of the day on which this Act comes into force, that is to say, 1(one) year after the commencement date of this Act.
52. Vessels with valid licence
In the case of any vessel that, immediately prior to the coming into force of this Act, is operating pursuant to a valid coastal trade licence under the Merchant Shipping Act or Sea Fisheries Act, the provisions of this Act shall apply to that vessel in respect of any activity authorised to be performed by the licence would otherwise have expired had this Act not come into force.
53. Repeals and amendments.
Any provisions of any existing laws with respect to the registration of vessels, ownership, size and type of vessel, participation in Nigerian domestic coastal and inland waters trade in whatever forms that is inconsistent with the provisions of this act is repealed in so far as it affects matters under this Act and in particular as set out in the Schedule to this Act.
54. Savings
All of the provisions of the merchant shipping Act and other relevant legislation and regulations that are in force immediately before the commencement of this Act shall, so far as they are consistent with this Act continue to be in force.
55. Savings as to court proceedings
Except as expressly provided in this Act, nothing in this Act shall affect the rights of any party to any proceedings commenced in any court on or before the commencement of this Act.
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SCHEDULE
[Section 53.]
Repeals and Amendment
Short title of the Act
Repeal or Amendment
Merchant Shipping Act, Cap. M11, Laws of the Federation of Nigeria, 2004
Section 5 is repealed
Merchant Shipping (Manning) Regulations, Cap.M11, Laws of the Federation of Nigeria, 2004.
Regulations 1(2) is repealed
Merchant Shipping (Licensed Ships) Regulations Cap. M11, Laws of the Federation of Nigeria 2004.
Regulation 1 is repealed.
The Finance (Control and Management) Act, Cap. F26, Laws of the Federation of Nigeria 2004.
In First Schedule, Part II, insert after paragraph 8, paragraph 9.
"9 cabotage Vessel Financing Fund-
The fund established by section 45 of the coastal and Inland Shipping (Cabotage) Act, 2003"
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SUBSIDIARY LEGISLATION
_________________
No Subsidiary Legislation
COASTAL AND INLAND SHIPPING (CABOTAGE) ACT
[An Act to restrict the use of Foreign vessels in Domestic Coastal trade to promote the Development of Indigenous Tonnage and to establish a Cabotage Vessel Financing Fund; and for related matters]
Arrangement of Sections
PART 1 - Short title and Interpretation
PART II - Restriction of vessels in Domestic Coastal Trade
5. Carriage of petroleum products and ancillary services.
6. Navigation in inland waters.
8. Application to foreign vessels.
PART III - Waivers
9. Waiver on wholly Nigerian ownership.
10. Waiver on manning requirement.
11. Waiver on Nigerian built vessels.
12. Order for granting of waiver.
14. Ministers to issue guidelines on waivers.
PART IV - Licence to Foreign Vessel
15. Grant of licence to foreign vessels and conditions.
16. Terms and conditions of Licence.
18. Suspension, cancellation and variation of Licence.
20. Minister to issue guidelines on Licence.
21. Operating without Licence.
PART V - Registration
26. Citizenship requirement for ship financing.
PART VI - Enforcement
30. Enforcement unit and officers.
31. Power of enforcement officers.
33. Port clearance to vessels.
34. Publishing requirements for employment of vessels.
PART VII - Offences
35. Offences against this Act.
36. Failure to comply with a requirement etc. of an enforcement officer.
37. False misleading statements.
39. Liability of ship owners, companies and officers.
40. Strict liability and general penalty.
PART VIII - Cabotage Vessels Financing Fund
42. Cabotage Vessel Financing Fund.
44. Collection, etc. of the Fund.
PART IX - Miscellaneous
47. Licences, waivers on board.
48. Requisition of vessels by Minister.
52. Vessels with valid licence.
55. Savings as to Court Proceedings.
SCHEDULE
Repeals and Amendment
__________
COASTAL AND INLAND SHIPPING (CABOTAGE) ACT
An Act to restrict the use of Foreign vessels in Domestic Coastal trade to promote the Development of Indigenous Tonnage and to establish a Cabotage Vessel Financing Fund; and for related matters
[30th April, 2003] [Commencement.]
PART I - Short title and Interpretation
1. Short title
This Act may be cited as the coastal and inland shipping (Cabotage) Act, 2003.
2. Interpretation
In this Act -
"cargo" means goods carried in or on a vessel whether or not of commercial value and includes livestock;
"coastal trade" or "cabotage" means-
(a) The carriage of goods by vessel, or any other mode of transport, from one place in Nigeria or above Nigeria waters to any other place in Nigeria or above Nigeria waters, either directly or via a place outside Nigeria and includes the carriage of goods in relation to the exploration, exploitation or transportation of the mineral or non-living natural resources of Nigeria whether in or under Nigerian waters;
(b) The carriage of passengers by vessel from any place in Nigeria situated on lake of river to the same place, or to any other place in Nigeria, either directly or a place outside Nigeria to the same place without any call at any port outside Nigeria or to any other place in Nigeria, other than as an in transit or emergency call, either directly or via a place outside Nigeria;
(c) The carriage of passengers by vessel from any place in Nigeria to any place above or under Nigerian waters to any place in Nigeria, or from any place above Nigerian waters to the same place or to any other place above or under Nigerian waters where the carriage of the passengers is in relation to the exploration, exploitation or transportation of the mineral or non -living natural resources in or under Nigerian waters; and
(d) The engaging, by vessel, in any other marine transportation activity of a commercial nature in Nigerian waters and, the carriage of any goods or substances whether or not of commercial value within the waters of Nigeria;
"enforcement officer" means a person so designated to be an enforcement officer for the purpose of this Act;
"enforcement unit" means the department within the national maritime Authority charge with the responsibility of enforcing the provisions of this Act;
"Exclusive Economic Zone" has the meaning given to it under the Exclusive Economic Zone Act, Cap. E17 116, Laws of the Federation of Nigeria 2004;
"foreign vessel" means a vessel other than a Nigerian vessel;
"hull" means the shell, or outer casting, and internal structure below the main deck which provide both the floatation envelope and structural integrity to the vessel in its normal operation;
"in-transit call" means any call, other than an emergency or technical call, by a vessel at any place where passenger go ashore temporarily but re-board the vessel before the vessel leaves that place or are transported by land to another location to re-board the same vessel and include cargo not discharged at the transit call;
"inland waters" has the meaning given to it under the national inland waterways Authority Act, 1997;
"licence" means a document issued pursuant to the Act, authorising a foreign ship or vessel to be registered for participation in the coastal trade while in Nigerian waters;
"master" in relation to a vessel has the same meaning as in the merchant shipping Act, Cap.M11 , Laws of the Federation of Nigeria 2004;
"Minister" means the head of the ministry for the time being charge with the responsibility for matters relating to Shipping and "Ministry" has the corresponding meaning;
"Nigerian citizen" means a citizen of Nigeria as defined in the Nigerian Constitution;
"Nigerian vessel" means a vessel which is registered in Nigeria and has the meaning given to it in section 23(1) or (2);
"Nigerian waters" shall include inland waters, territorial waters or waters of the exclusive Economic Zone (respectively, together or any combination thereof) and the meaning given to them by the National Inland Watersways Authority Act, 1997;
"owner" in relation to a vessel, includes the person having for the time being, either by law or by contract ,the right of the owner of the ship as regards the possession and use thereof;
"place above Nigerian waters" in the context of coastal trade includes any vessel, offshore drilling unit, production platform, artificial island, subsea installation, pumping station, living accommodation, storage structure, loading or landing platform, dredge, floating crane, pipe laying or other barge or pipeline and any anchor cable or rig pad used in connection therewith;
"superstructure" means the main deck and any other structural part above the main deck;
"Territorial waters" have the meaning given to it under the Territorial Waters (Amendment) Act 1998;
"vessel" includes any description of vessel, ship, boat, hovercraft or craft, including air cushion vehicles and dynamically supported craft, designed, used or capable of being used solely or partly for marine navigation and used for the carriage on through or under water of persons or property without regard to method or lack of propulsion;
"vessel built in Nigeria" means where all the major component of its hull and superstructure are fabricated in Nigeria or assembled entirely in Nigeria;
"vessel wholly manned by Nigerians" means where all the shipboard officers and crew employed aboard the vessel is exclusively of Nigerian citizens;
"wholly owned Nigerian vessel" means a vessel which is owned and registered in Nigeria whose 64 shares are beneficially owned by Nigerian citizens or a company registered in Nigeria with 100 per centum of its share capital beneficially owned by Nigerian citizens and the share in the vessel and the ship owning company shall be held by Nigerian citizens free from any trust or obligation in favor of non-Nigerians.
PART II - Restriction of vessel in Domestic Coastal Trade
3. Prohibition
A vessel other than a vessel wholly owned and manned by a Nigerian citizens, built and registered in Nigeria shall not engage in the domestic coastal carriage or cargo and passengers within the Coastal Territorial Inland Waters, Island or any point within the waters of the Exclusive Economic Zone of Nigeria.
4. Restriction on towage
5. Carriage of petroleum products and ancillary services.
A vessel tug or barge of whatever type other than a vessel, tug and barge whose beneficial ownership resides wholly in a Nigerian citizen shall not engage in the carriage of materials or supply services to and from oil rig, platforms and installations whether offshore or onshore or within any ports or points in Nigerian waters.
6. Navigation in inland waters
A vessel of whatever type or size shall not engage in domestic trading in the inland waters of Nigeria except as a vessel that is wholly owned by Nigerian citizens.
7. Rebuilt vessels
8. Application to foreign vessels
(a) engaged in salvage operation is determined by the minister to be beyond the capacity of Nigerian owned and operated salvage vessels and companies;
(b) engaged with the approval of the Minister or any other relevant Government agency in activities related to a marine pollution emergency or to any threatened risk thereof ;
(c) engaged in any ocean research activity commissioned by the Department of Fisheries or any other department of the Government responsible for such research; or
(d) operated or sponsored by a foreign Government that has sought and received the consent of the Minister of Foreign Affairs to conduct Marine Scientific Research.
PART III - Waivers
9. Waiver on Wholly Nigerian Ownership
The Minister may on the receipt of an application grant a waiver to a duly registered vessel on the requirement for a vessel under this Act to be wholly owned by Nigerian citizens where he is satisfied that there is no wholly Nigerian owned vessel that is suitable and available to provide the services or perform the activity described in the application.
10. Waiver on manning Requirement
The Minister may on the receipt of an application grant a waiver to a duly registered vessel on the requirement for a vessel under this Act to be wholly manned by Nigerian citizens where he is satisfied that there is no qualified Nigerian officer or crew for the position specified in the application.
11. Waiver on Nigerian built Vessels
12. Order for granting of waivers
Where the circumstances described in Sections 9-11 apply, and the Minister has determined that a waiver be granted, the order for granting the waiver shall be -
(a) in the first instance, to a shipping company and vessels owned by a joint venture arrangement between Nigerian citizens and non-Nigerians-
(b) in the second instance, to any vessel registered in Nigeria and owned by a shipping company registered in Nigeria provided that the applicant shall comply with all the relevant provisions of this Act.
13. Duration of a waiver.
A waiver granted under this Act shall specify the period of time for which it shall be valid, which period shall not in any circumstance exceed one (1) year.
14. Minister to issue guidelines on waivers
PART IV - Licence to Foreign Vessel
15. Grant of licence to foreign vessels and conditions
(a) any of the circumstances in sections 9-12 is applicable;
(b) the foreign owned vessel is eligible to be registered in Nigeria;
(c) the owning company of the foreign vessel has a representative office in Nigeria;
(d) all applicable duties, levies and tariffs imposed by the relevant authorities applicable to foreign vessels with respect to its participation in the Coastal Trade have been paid.
(e) the foreign vessel possess all certificates and documents in compliance with international and regional maritime conventions whether or not Nigeria is a party to the conventions and that such certificates and documents are current and valid; and
(f) the foreign vessel meets all safety and pollution requirements imposed by Nigerian law and any international conventions in force.
16. Terms and conditions of licence
(a) the service or foregoing that is to be performed by the foreign vessel to which the license relates; and
(b) The place or places where the foreign vessels may perform that service or activity.
17. Duration of licence
A license issued pursuant to section 15 to a foreign vessel shall set out the period of time for which it is valid, which period shall not exceed one (1) year or the term of any certificate or the document referred to in section 15(1)(e) provided that the license term shall not in any circumstance exceed one year.
18. Suspension, cancellation and variation of licence.
The Minister may by order, suspend or cancel a licence or vary the terms and conditions of a licence where-
(a) the owner or master of the licensed vessels is convicted of an offence under this or any other Act of the National Assembly relating to navigation or shipping;
(b) there has been a contravention of or failure to comply with any term or condition to which the licence is subject to ; or
(c) it is expedient to cancel, suspend or vary the license or permit for reasons of national or public interest.
19. Tarriff on licence
Where it is deemed expedient to grant a licence in conformity with the provision of this Act, the Minister shall impose a tariff on the vessel as a condition for granting the waiver.
20. Minister to issue guidelines on licence
The Minister shall immediately after the commencement of this Act, establish and publish the criteria and guidelines for the issuance of licences under this Act.
21. Operating without licence
A foreign owned and foreign-crewed vessels shall not participate in the domestic coastal trade without the license and authorization required by the provisions of this Act.
PART V - Registration
22. Registration
(a) passenger vessels;
(b) crew boats;
(c) bunkering vessels;
(d) fishing trawlers;
(e) barges;
(f) off-shore service vessels;
(g) tugs;
(h) anchor handling tugs and supply vessels;
(i) floating petroleum storage;
(j) dredgers;
(k) tankers;
(l) carriers; and
(m) any other craft or vessel used for carriage on, through or underwater of persons, property or any substance whatsoever.
23. Ownership requirements
(a) the vessel is wholly and beneficially owned by Nigerian citizens or by a company wholly and beneficially owned by Nigerian citizens and a vessel or company is wholly and beneficially owned by Nigerian citizens where all the shares in the vessel and the company are held by Nigerian citizens free from any trust or obligation in favour of any person not a citizen of Nigeria;
(b) the vessel is on bareboat charter to Nigerian citizens and is under the full control and management of Nigerian citizens or a company wholly and beneficially owned by Nigerians in terms of subsection (1)( a);
(c) the vessel is owned by a company registered in Nigeria and the percentage of shares in the company owned by Nigerian citizens is not less than 60 per centum;
(d) any foreign vessel is licenced in compliance with Part II of this Act;
(e) the vessel is exclusively manned by officers and crew of Nigerian citizenship except where Section 10 applies; and
(f) the vessel possesses all certificates and documents in compliance with international and regional maritime conventions to which Nigeria is a party including all safety and pollution requirements imposed by a Nigerian law and any international convention in force.
24. Proof of ownership
In the performance of his duties under this part, the Minister shall take due care and carry out adequate investigation to ascertain the true ownership of vessels and ship owning companies and shall issue guidelines for determination thereof which shall include-
(a) the last certificate of registration of the vessel;
(b) the bill of sale;
(c) the ownership of shares in the company applying to be registered;
(d) the apportionment of shares in the vessel;
(e) a certificate under oath sworn to in a court of superior records by the owner, its duly authorized officer or agent establishing that such applicant has complied with the condition of this Act; and
(f) affidavit or statutory declaration by the owners of the owning company sworn to in a court of superior records stating their shares and the capacity in which the shares are held; and
(g) such further requirements as the Minister may specify.
25. Deletion from Registry
Any vessel registered, granted a licence or permit in accordance with the provisions of this Act shall be deleted from the registry where it is determined that-
(a) a subsequent change in the ownership structure of the vessel or the owning company as the case may be has contravened the provisions of this Act under which the vessel was registered and the relevant provisions of the Merchant Shipping Act; or
(b) the required certification and documentation has expired or it is no longer eligible for registration under the Merchant Shipping Act or under this Act.
26. Citizen requirement for ship financing
(a) the vessel shall be under charter for a term not less than three years;
(b) the charterer or mortgagee shall meet the citizenship requirement for operating vessels in the domestic coastal trade under Parts II and IV of this Act.
27. Temporary registration
The Minister shall immediately after the commencement of this Act issue regulations and guidelines which shall permit foreign owned vessels engaged in the domestic trade, a temporary registration in the Nigerian Registry, which registration shall cover the duration of the contract for which the vessels are employed.
28. Age of Vessels
Any vessel registered under this Nigerian Registry at the date of coming into force of this Act and who is over 15 years old shall continue to be eligible for participation in the coastal trade for a period of five years after the commence of this Act provided the vessel possesses a certificate of registry and a certificate of seaworthiness from a recognised classification authority.
PART VI - Enforcement
29. Special Register
30. Enforcement unit and officers
31. Powers of enforcement officers
(a) requiring the owner, master or any person who may have possession of the official log book on the ship, or any other document or paper that may provide evidence of the contravention, to produce, for inspection or for the purposes of obtaining copies thereof or extracts therefrom, the log book or any other document or paper;
(b) require the master of such ship to give such information relating to the ship, cargo, stores, crew, passengers or voyage as he may consider necessary;
(c) require the master or any person found on board the ship to give all the reasonable assistance in the power of the master or any other person, as the case may be, to enable the enforcement officer to carry out the enforcement officer's duties and functions under this Act; and
(d) where necessary enlist the assistance of the Nigerian Customs Service, the Nigerian Navy, the Nigerian Police and any other law enforcement as he may deem necessary.
32. Detention order
33. Port clearance to vessels
Notwithstanding the provisions of any other laws, no port clearance shall be granted to a vessel engaged in domestic coastal shipping unless the owner, charterer, master or agent satisfies the proper customs or such other authority authorised to issue port clearance that the vessel is licensed to engage in domestic shipping or has the prescribed waiver.
34. Publishing requirements for employment vessels
Any person engaged in the business of employing vessels for the domestic coastal trade shall specify and publish all the requirements to be satisfied with respect to the employment of vessels.
PART VII - Offences
35. Offences against this act.
(a) sections 3-6 and is liable on conviction to a fine of not less than N10,000,000.00 and / or forfeiture of the vessel involved in the offence or such higher sum as the court may deem fit;
(b) section 21 and is liable on conviction to a fine of not less than N 15, 000,000.00 and or forfeiture of the vessel or such higher sum as the Court may deem fit and;
(c) section 22 and is liable on conviction to a fine of not less than N 5, 000,000.00
36. Failure to comply with a requirement etc. of an enforcement officer.
Any person who without reasonable excuse, fails to comply with a requirement made, or direction given, by an enforcement officer under this act commits offence and shall on conviction if it is an individual, be liable to a fine not less than N100, 000.00 and shall on conviction if the offence is committed by a body corporate, be liable to fine of not less than N 5, 000,000.00.
37. False or misleading settlements.
(a) Information that is, to the person's knowledge false or misleading particular; or
(b) any document containing information that is, to the person's knowledge false or misleading in a material particular.
38. Deemed separate offence.
When an offence is committed by a vessel under sections 3,4,5,6 and 21 on more than one day or is continued by the vessel for more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued.
39. Liability of ship owners, companies and officers
(a) in the case of a vessel, the shipping company responsible for the vessel or the captain of the vessel shall be deemed to have committed or the offence.
(b) in the case of a ship owning company or a body corporate other than a partnership, every director or an officer of the company or body shall also be deemed to have committed the offence;
(c) in the case of a partnership every partner or officer of that body shall also be deemed to have committed that offence.
(a) a director of the body corporate or other person however described, responsible for the direction, management and control of the body corporate; or
(b) any other person who is concerned in, or takes part in the management of the body corporate and whose responsibilities include duties with respect to the matters giving rise to the offence.
40. Strict liability and general penalty jurisdiction
Any person who contravenes any provision of this Act or any regulations made there under commits an offence and shall no conviction, where no specific penalty is prescribed thereof, be liable to a fine not less than N500,000.00.
41. Jurisdiction
Jurisdiction over the matters and offence referred to in this Act lie with the Federal High Court.
PART VIII - Cabotage Vessel Financing Fund
42. Cabotage Vessel and Financing fund.
43. Funding
There shall be paid into the Fund -
(a) a surcharge of 2 per centum of the contract sum performed by any vessel engaged in the coastal trade;
(b) a sum as shall from time to time be determined and approved by the National Assembly;
(c) monies generated under this Act including the tariffs, fines and fees for licences and waivers;
(d) such further sums accruable to the Fund by way of interests paid on and repayment of the principal sums of any loan granted from the Fund.
44. Collection etc, fund.
The fund shall be collected by the National Maritime Authority and deposited in commercial banks and administered under guideline that shall be proposed by the Minister and approved by the National Assembly.
45. Beneficiaries
The beneficiaries of the Fund shall be Nigerian citizens and shipping companies wholly owned by Nigerians.
PART IX - Miscellaneous
46. Regulations
(a) prescribing the manner or content of applications notice, or any other documentation or information as may be required under this Act;
(b) prescribing the fees payable or the methods for calculating fees and recovering costs in respect of applications for permits, licences, loans and guarantees or other matters under this Act;
(c) prescribing the amount, methods for calculating the amount, and circumstances and manner in which holders of licences and permits shall be able to pay for participation in the domestic coastal trade under this Act;
(d) requiring the holders of permits and licences granted for any activity under this Act to keep records for any purpose under this Act and prescribing the nature of records, information, and returns, and the form, manner, and times in or at which they shall be kept or furnished.
(e) requiring any person engaged in the employment of vessels for the domestic coastal trade to publish their pre-tender qualifications with respect to the desired vessels within a prescribed period; and
(f) providing for any other such matters as are contemplated by, or necessary for giving full effect to this Act and for its due administration.
47. Licence waivers on board.
Licences, waivers, approvals or permits referred to in this Act shall be carried on board the vessel at all times.
48. Requisition of vessels by Minister
The Minister may in times of economic crisis or national emergency, by order compel vessels registered under this Act, to provide essential services to sustain basic needs of people to fulfil existing multi-lateral agreements.
49. Powers of delegation.
50. Units of accounts
51. Transitional Provisions.
The provisions under this Act shall be enforced from the first anniversary of the day on which this Act comes into force, that is to say, 1(one) year after the commencement date of this Act.
52. Vessels with valid licence
In the case of any vessel that, immediately prior to the coming into force of this Act, is operating pursuant to a valid coastal trade licence under the Merchant Shipping Act or Sea Fisheries Act, the provisions of this Act shall apply to that vessel in respect of any activity authorised to be performed by the licence would otherwise have expired had this Act not come into force.
53. Repeals and amendments.
Any provisions of any existing laws with respect to the registration of vessels, ownership, size and type of vessel, participation in Nigerian domestic coastal and inland waters trade in whatever forms that is inconsistent with the provisions of this act is repealed in so far as it affects matters under this Act and in particular as set out in the Schedule to this Act.
54. Savings
All of the provisions of the merchant shipping Act and other relevant legislation and regulations that are in force immediately before the commencement of this Act shall, so far as they are consistent with this Act continue to be in force.
55. Savings as to court proceedings
Except as expressly provided in this Act, nothing in this Act shall affect the rights of any party to any proceedings commenced in any court on or before the commencement of this Act.
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SCHEDULE
[Section 53.]
Repeals and Amendment
Short title of the Act
Repeal or Amendment
Merchant Shipping Act, Cap. M11, Laws of the Federation of Nigeria, 2004
Section 5 is repealed
Merchant Shipping (Manning) Regulations, Cap.M11, Laws of the Federation of Nigeria, 2004.
Regulations 1(2) is repealed
Merchant Shipping (Licensed Ships) Regulations Cap. M11, Laws of the Federation of Nigeria 2004.
Regulation 1 is repealed.
The Finance (Control and Management) Act, Cap. F26, Laws of the Federation of Nigeria 2004.
In First Schedule, Part II, insert after paragraph 8, paragraph 9.
"9 cabotage Vessel Financing Fund-
The fund established by section 45 of the coastal and Inland Shipping (Cabotage) Act, 2003"
SUBSIDIARY LEGISLATION
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