Obtaining License to Operate in The Maritime Sector-Shipping/ Shipping Agents, Licensed Customs Agents, Ship Chandelling, Bonded Terminals Etc.

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Office Address: 5, Ishola Bello Close, Off Iyalla Street, Alausa, Ikeja, Lagos, Nigeria.

Background Study

Maritime companies are essential to international trade because they serve as the solid intermediaries between different countries. Maritime companies own, charter, or operate boats and other vessels to carry passengers or cargo on the sea. Maritime companies are bound by national and international laws and regulations. Some of these laws and regulations are crafted to protect the environment, while others are intended to ensure the safety of passengers and crew members that is why it is important for Maritime companies to comply with these laws and regulations to continue their operations unhindered. Furthermore, they must also obtain licenses and permits from various government agencies to conduct their business to avoid disturbance.

Inquire about sea commerce has advanced around the arrangement and change of shipping markets, the advancement of shipping firms and dispatch administration, the impact of innovation at ocean transport and on its efficiency and cargo rates, on patterns of the nationality of world armada, and its denationalization or “flagging out,” on marine labor and hazard at sea.

A shipping firm is the financial unit that employments the variables of generation to deliver and give ocean transport administrations. It serves the world exchange framework which was solidified in the 19th century, and the arrangement and organization of shipping firms taken after the sort of cargoes that had to be carried: to begin with, bulk commodities carried in tremendous amounts like crude materials and moment fabricated and bundled merchandise. The to begin with sort of cargo has been served by the tramp/bulk shipping companies and the moment sort by the liner/container shipping companies. Innovation has been a watershed in the arrangement and change of the shipping firm. Five periods can be recognized in the final two centuries in the advancement of the shipping industry and the shipping firm concurring to change of shipping markets and the presentation of unused innovations: (a) up to the 1820s, (b) from the 1830s to the 1870s, (c) from the 1880s to the 1930s, (d) from the 1940s to the 1970s, and (e) after the 1980s.

Until the final third of the 20th century Europe ruled the world armada to be slowly supplanted by the Asian armadas in the 21st century. Sea trade, is progressively losing its “nationality” and is getting to be worldwide in spite of the reality that in segments of it there are capable shipping families associated with certain countries. Shipping has continuously been a high-risk commerce, which, in spite of the advancement in numerous angles of its operation. Universal Sea Exchange is as ancient as the improvement of human social orders by ethicalness of being the financial soul of any gather of individuals through the movement of products between buyers and venders over incredible distances.

In advanced commercial exercises, the significance of the right administrative system cannot be over-emphasized, with distinctive esteem offerings in the sea Commerce division subordinate on a few frames of direction, in the case of Nigeria, the Nigerian Ports Specialist (NPA) and to a lesser degree, the Nigerian Traditions Benefit (NCS).

This composition will be centered on the different accessible Commerce licenses and licenses in the Nigerian Oceanic Division and their prerequisites. Registering your business can be dispiriting, but registering your maritime company in the UK doesn’t have to be complicated. In the words of the platoon at https//www.uniwide.co.uk/, you can do it online with the help of a professional service. This will simplify the process and help you to avoid any implicit complications. Still, it’s worth noting that other countries may have different conditions for registering a maritime company. It’s important to probe the specific conditions of the country in which you intend to operate your business. When you’ve decided to set up a maritime company, it’s pivotal to understand your fiscal options. There are a many different ways to finance your business, and each has its own advantages and disadvantages. One option is to take out a loan from a bank or other fiscal institution. This can give you the capital you need to get started, but you will have to make regular payments and may be needed to put up collateral. Another option is to invest your own plutocrat or seek investment from musketeers or family members. It can be a more flexible arrangement, but it’s also unsafe, as you could lose your particular investment if the business fails. Eventually, you could try to finance your business through government subventions or loans. These can be competitive, but they can also give the launch-up capital you need with smaller strings attached. Whichever option you choose, it’s essential to do your exploration and talk to an accountant or fiscal counsel before making any opinions. Choosing a position with good access to shipping routes and anchorages is necessary. This means chancing a megacity or city positioned near a body of water and has a large harborage. It’ll help ensure your business can take advantage of all the available openings for maritime trade. Also, consider the original request conditions when choosing a position for your business. Make sure to probe the original frugality and structure to ensure your business will be suitable to thrive in its new home. Insurance is an essential consideration for any business, but it’s pivotal for maritime companies. The pitfalls associated with maritime conditioning are significant, and a failure to gain acceptable insurance content could affect in ruinous fiscal losses. There are several different types of insurance available, and it’s vital to make sure you have the right content for your business. One of the most important types of insurance to maritime enterprises is housing and ministry insurance. This type of policy covers the costs of repairing or replacing your damaged vessel after an accident. It would be stylish to consider liability insurance, which will cover you from any legal claims against your company. Carrying the right insurance content can be complex, so it’s vital to work with an educated broker who understands the unique requirements of the maritime assiduity. Failure to gain acceptable insurance content could put your business at threat. Do not forget to shop around and compare rates from different insurers to make sure you’re getting the stylish possible deal on your insurance content. Before launching your maritime company, it’s essential to conduct comprehensive request exploration. It’ll help you understand your target request’s requirements and the competition you’ll face. Consider all aspects of the maritime assiduity, including shipping routes, anchorages, and original request conditions. Also, probe the different types of maritime companies. It’ll help you determine what services are formerly being offered and how your company can separate itself. It’s also essential to have a clear understanding of the global maritime request. What are the current trends? What are the major players in your chosen sector? What are the openings and pitfalls? Doing your request exploration is essential to ensure that your maritime company is successful.

One of the most important affects you need to do before setting up a maritime company is a strong business plan. This document will outline your company’s pretensions, strategies, and fiscal protrusions. It’s essential to have a well- allowed – out business plan if you want your company to succeed. Make sure to include a marketing plan which will help you promote your business and attract guests.

Also, your business plan should contain fiscal protrusions that will show implicit investors how your company plans to make plutocrat. Without a strong business plan, it will not be easy to move implicit investors to invest in your company. So, make sure you take the time to develop a comprehensive and well- allowed – out business plan before you launch your maritime company.

It’s essential to have the right platoon in place to be successful. This includes educated maritime attorneys, accountants, and insurance brokers. You also need to make sure you have a strong marketing platoon to request your company’s services to implicit guests effectively.

Also, have a platoon of good masterminds and boat captains who can safely and efficiently operate your vessels. Having the right platoon in place will help ensure that your company can navigate the challenges of the maritime assiduity.

These are just a many essential affects you need to consider before setting up a maritime company. Your company can succeed in this competitive assiduity with careful planning and prosecution. Just make sure you do your schoolwork and put together a strong platoon of professionals to help you navigate the challenges of the maritime assiduity.

 What Boat Chandelling Means.

Boat chandelling simply put is a process where the chandler, that’s the name of the person who undertakes boat chandelling business, inventories to a vessel products and outfit demanded on board, this means vittles, disposables, perishable particulars and indeed conservation corridor because the crew aboard a vessel occasionally don’t have access to land for months so they need to feed and the chandler provides effects that are veritably essential on board, that’s what chandelling is principally about.

What part does transport chandelling play in shipping business?

I would say to a large extent, that chandelling business is veritably vital in the shipping business considering the fact that you cannot be on the vessel for the period of one passage without running short of food and water, so there’s no how you can separate chandelling from shipping.

What’s the difference between chandelling and bunkering?

The difference is that the chandler inventories vittles and food particulars, but bunkering is the process of lading energy into a vessel because a lot of people misinterprets bunkering as illegal, bunkering isn’t illegal, as long as it done through the applicable authorities, bunkering is just a business that involves fueling a vessel and suppling energy to a vessel, there’s also what’s called water bunkering. Water bunkering is a script where, in as important as the vessel is on top of water people suppose perhaps it gets water directly from the ocean, you have to physically transport water in tanks to the vessel where it’s loaded on board, this is what the crew use for bathing, cuisine and washing.

So, can a chandler function as an oil painting cellarage or water cellarage?

It depends because there are different bodies that handle each with different conditions. So, if you decide to do bunkering alongside chandelling, that means you have to belong to the two bodies and meet their individual conditions, so you would not have issues with them when you’re conducting your business.

 Who Can Be Appertained to As a Boat Chandler?

A boat chandler is someone who carries out the business of furnishing services to vessels in terms of supplying their necessary requirements like vittles, disposables and occasionally can be extended to supplying conservation corridor of the vessel, that is, machine corridor and other essential particulars. A boat chandler has to be someone that’s trusted by the boat proprietor because food poisoning is commodity they try to guard against.

The quality of what’s supplied to them is veritably important and that’s why when a chandler is suitable to come on board, it’s veritably important that he maintains a high position of hygiene and punctuality of delivery on board. The vessel doesn’t have the luxury of time because they’ve to snappily disembark their weight and go back to where they’re coming from.

Conditions To Be Met to Be a Chandler

In order be a chandler you have to first of all register with Nigerian Maritime Administration and Safety Agency (NIMASA), as a shipping company and secondly you need to register with the Nigeria Customs Service (NCS), because these are the authorities that issue the permit as they’re in charge of the inland waters and littoral water ways. Once you have acquired

Boat chandler is a person, group or agency that deals in supplying essential particulars demanded by a shipping vessel and its crew. Their services can be compared to that of a grocer who supplies homes with needed food particulars. A boat chandler’s task is to supply a boat with necessary and required accoutrements when it’s docked. It is not the same as “chandler” which means candle maker

All over the world, vessels dock at anchorages daily after they’ve travelled for days, weeks and months, they are generally out of coffers, inventories and energy and bear restocking and refueling before their coming passage; this is when the services of a boat chandler is demanded.

Boat chandlers deal with trade and retail in the marine assiduity, especially of boat outfit and inventories; they give their services when a boat is anchored at harborage. Boat chandlers supply vessels with necessary goods like passage cloth, tools, nail, shaft, boat hook, brooms, mops, oil painting, tallow, freshwater, food inventories etc. They supply all types of vessels, oil painting tankers, weight vessels, yachts; boat chandlers take responsibility for the conditions of a boat during a passage, generally the boat would have placed its order with the chandler before appearance so the inventories will be ready on appearance. This reduces lading and reversal time, a chandler also keeps track of the appearance and departure schedule of vessels they’re handling to be suitable to plan their restocking according to schedule.

Employing the services of a chandler directly helps to avoid the mediators and save a lot of plutocrats, it also allows complete exclusivity to both parties; boat chandelling is a unique service because it only caters to the shipping business.

Significance Of Boat Chandelling

Boat Chandelling is presumably as old as dispatching itself, boat chandlers have been in service since boats demanded certain goods for their long passages; also boat chandlers most probably only handed particulars like passage cloths, ropes, nails and other like particulars to vessels.

With the arrival of global navigation and advancements in technology, the job of boat chandlers came more sophisticated and boat chandlers had more liabilities. Chandelling is now an important part of the shipping assiduity around the world, chandlers are veritably important, graceful and hallowed, and they don’t only give rudiments like ropes, passage cloths but other particulars like conservation tools, food inventories, chemical composites, drawing outfit and several other accoutrements.

Boat chandlers play a veritably important part in shipping, then are some important boat chandelling services

Chandlers force necessary particulars like food, oil painting, lubricants, spare corridor etc, to vessels previous to their operation.

Boat chandlers don’t only feed to the essential conditions of the boat but also the nanosecond nuances of conditions of the boat and its crew.

Boat chandlers also help boat buyers by furnishing them with exclusive details of the real condition of a boat to help loss from buying a damaged vessel.

They also give services like form and conservation services, drawing arrangements etc.

Boat chandlers give effective services whether the boat is anchored or on a passage, vessels may need foodstuff, energy, spare corridor, repairs when on a passage, these conditions are taken care of by boat chandlers. It’s stylish to approach boat chandlers directly for their services, by doing this, boat and crew can get all needed particulars from one source of force. This way, they get the stylish deals and abatements on goods; directly approaching the chandler also reduces the number of people involved in the process and eliminates gratuitous detainments thereby saving time and trouble.

Advantages Of Hiring Boat Chandlers

These are some of main advantages of boat chandlers

Profitable factor boat chandlers are generally apprehensive of the current request rates and charge consequently, they generally charge nicely. Employing a chandler means elimination of mediator and other mediators. This makes boat chandlers a profitable factor.

One point source a chandler can take care of all the conditions of a boat at a single place, this ensures good abatements and reasonable prices for goods.

Direct contact orders are generally placed in advance with the chandler, this generally reduces the possibility of detention. Direct contact between the boat/ guests and chandler reduces detention of any kind.

Assurance of quality a chandler’s business depends on the quality of service he renders, a chandler will strive to give their guests with quality goods so their services can be trusted.

A boat chandler can be considered a lubricant of the marine assiduity, without them, the assiduity cannot run easily and efficiently. Chandelling is an incredibly delicate profession that requires lots of knowledge and connections, chandelling services have been applicable and important in the marine world and will continue to be for numerous further times.

What It Takes to Be a Boat Chandler

To come a boat chandler, one must first gain license and concurrence from the Government as well as the shipping pot of the country they intend to work in to be a good chandler they must have some essential characteristics

They should have expansive knowledge about the nuances of all the musts of the boat and its crew members.

As Boat chandler has to serve to transport as well as its crew, so they must supply necessary goods in time to quench the essential conditions.

They should have to be acquainted with long passage conditions and should grease the previous force of particulars similar as energy and lubricants, repairing and servicing of the vessel, food particulars, etc.

A boat chandler always needs to conform to the loftiest of quality norms and have their customer’s confidence.

A boat chandler must have access to good storehouse installations and great logistics in order to deliver on time and in perfect order.

A boat chandler must strive to give their guests value for their plutocrat

They must take note of every detail, like specific salutary conditions and be sensitive to the crew’s social and religious conditions.

A boat chandler must be suitable to deliver quotations snappily.

They must ensure that unlooked-for charges no way or infrequently happens.

A good boat chandler should have command of multiple languages.

A good boat chandler must be familiar with nearly all shipping conditions, boat and crew should be assured of quality goods. This is commodity we can boast of at Hendiac Nigeria Ltd

Boat Chandler Registration/ Licensing procedures for boat chandlers in Nigeria

Step-To-Steps Guide on How to Register and Obtain License as Chandlers

To be a boat chandler in Nigeria, you be registered with the Nigerian maritime administration and safety agency (NIMASA) as a shipping company, you also need to register with Nigeria customs service (NCS). These are the authorities that issue the permit as they’re in charge of inland and littoral water ways. Also, you have to register with the Nigerian harborage authority, a letter of operation is submitted to the harborage director. The following steps are the requirements to registering as chandlers

• Letter of Application to the Port Manager with the following accompanying documents:
• Certificate of Registration with CAC
• Three years Tax Clearance Certificate
• Customs approval with Form C1
• Registration fee: ₦200,000.00 payable to NPA revenue account.
• Certificate is valid for One (1) year.
• Renewable Annually
• Timeline: 6 weeks

  Types Of Ship Registration

• Register for merchant ships.
• Register for fishing vessels.
• Register for ships under construction.
• Register for ship under the bareboat charter and other charters exceeding 12 months
• Register of licensed ships below 15 gross tons.
• Register for Floating Production Storage and Offloading (FPSO) and Floating Storage and Offloading (FSO).
• Special Cabotage Register for Wholly Nigerian Owned Vessels.
• Special Cabotage Register for Bareboat Chartered Vessels.
• Special Cabotage Register for Foreign-Owned Vessels
• Provisional Registration
• Flag Registration
• Bareboat Registration (Flag/Cabotage)
• Cabotage Registration (Wholly Nigerian Owned, Joint Venture, Foreign Category) Registers Maintained by the Nigerian Ship Registry
• Register of Boats with Engine of 200 Horse-Power and Above.

Applicant’s Guide

 To register with the Nigerian ship registration office, the following steps are the pace to follow

STEP I- Send an application to the Director-General with all supporting documents required for your request.

STEP II- Liaise with the Nigerian Ship Registry Office for payment of the required fees.

STEP 3- Pick up your certificate/ document from the Nigerian Ship Registry Office.

Minimum Share Capital for Vessel Owners (Companies Only)

The least share capital for any vessel claimed by a Nigerian company is twenty-five million naira (N25, 000,000.00)

Reservation And Endorsement of Transport Names

The Application for Enrollment permits a proprietor to indicate a favored title for a dispatch and any options, ought to the favored title be inaccessible. It is too conceivable to check on title accessibility some time recently submitting the application and to save favored names. This can be done by going to the Nigerian Transport Enrollment Office.

A proposed title may be denied for any of the taking after reasons:

It is as of now the title of a Nigerian enrolled ship

It is a title so comparable to an existing title that it might pass off as having a place to the same owner.

It is likely to cause offense or humiliation to the flag.

It is calculated to misdirect or outrage the open interest.

Reservation of title is for a 60 days period after which the title should slip by.

Major Players In The Maritime Industry In Nigeria

• P. Moller – Maersk
• Bollore Transport and Logistics
• Hapag-Lloyd
• JOF Nigeria Limited
• Red Star Express PLC Source
• Africa Access 3PL Limited,
• AfriGlobal logistics,
• CMA CGM,
• Fortune Global Shipping and Logistics Limited,
• GIG Logistics,
• Gulf Agency Company (GAC),
• GWX Logistics, MDS Logistics.

Maritime Governing Rules and Regulations

According to the International Bar Association Blog post on ‘Legal Framework for Maritime Law in Nigeria by Tiwalade Aderoju (June, 2022), maritime law is that body of law governing marine commerce and navigation, the transportation at sea of persons and properties and marine affairs generally such as rules governing workers’ compensation claims, actions in contract and tort arising out of commerce on or over water.[liii]  We have briefly discussed some of the maritime laws and mechanisms that guide and regulate maritime practice in Nigeria.

The maritime industry is, however, international by nature, as about 71 per cent of the Earth’s surface is covered by water and the oceans hold about 96.5 per cent of all Earth’s water. It is therefore crucial, beyond the municipal maritime law of each state, to have international laws of the sea.

International laws of the sea are laws of maritime space that peacefully settle global disputes on maritime boundaries between or among states and define various jurisdictions of maritime zones as well as the rights and obligations of coastal states in these zones, especially with regard to the conservation of the marine environment and bio divers

Legal regime on maritime legislation

The following legislations are necessary for a good understanding of the body of laws and the rules of procedure regulating the business of transportation of goods and passengers, use of mineral resources, commerce and navigation on Nigeria waters.

The Constitution

The 1999 Constitution of the Federal Republic of Nigeria (as amended) (the ‘Constitution’) vests ownership of minerals, mineral oils and natural gas in the government of the federation. This extends beyond resources located in the land territory to those located in the territorial sea, including the Exclusive Economic Zone of Nigeria. [iii]

The Constitution also charges the state to improve and protect the air, land, water, forest and wildlife of Nigeria. [iv] by this provision, it tasks the Nigerian government to make the environment safe and further prosecute any persons who pollute the environment through its activities, especially the oil and gas companies. [v]

The Constitution confers jurisdiction on the Federal High Court to the exclusion of any other court in civil causes and matters relating to any admiralty jurisdiction, including: shipping and navigation on the River Niger or River Benue and their affluents; on such other inland waterway as may be designated by any enactment to be an international waterway; all federal ports (including the constitution and powers of the ports authorities for Federal ports); and carriage by sea.[vi]

Admiralty Jurisdiction Act

Further to the aforementioned provisions of the Constitution on the jurisdiction of the Federal High Court, the Admiralty Jurisdiction Act provides for the extent of the jurisdiction conferred on the court as follows: [vii]

Jurisdiction to hear and determine any question relating to a proprietary interest in a ship or aircraft or any maritime claim specified in section 2 of this Act;

Any other admiralty jurisdiction being exercised by any other court in Nigeria immediately before the commencement of this Act;

Any jurisdiction connected with any ship or aircraft that is vested in any other court in Nigeria immediately before the commencement of this Act;

any action or application relating to any cause or matter by any ship owner or aircraft operator or any other person under the Merchant Shipping Act or any other enactment relating to a ship or an aircraft for the limitation of the amount of his liability in connection with the shipping or operation of aircraft or other property;

Any claim for liability incurred for oil pollution damage;

Any matter arising from shipping and navigation on any inland waters declared as national waterways;

any matter arising within a Federal port or national airport and its precincts, including claims for loss or damage to goods occurring between the offloading of goods across space from a ship or an aircraft and their delivery at the consignee’s premises, or during storage or transportation before delivery to the consignee;

Any banking or letter of credit transaction involving the importation or exportation of goods to and from Nigeria in a ship or an aircraft, whether the importation is carried out or not and notwithstanding that the transaction is between a bank and its customer;

Any cause or matter arising from the constitution and powers of all ports authorities, airport authority and the National Maritime Authority;

Any criminal cause and matter arising out of or concerned with any of the matters in respect of which jurisdiction is conferred (in items 1-9 above).

The admiralty jurisdiction of the court in respect of carriage and delivery of goods extends from the time the goods are placed on board a ship for the purpose of shipping, to the time the goods are delivered to the consignee or whoever is to receive them; it does not matter whether the goods were transported on land during the process or not. [viii]

Any agreement or purported agreement, monetary or otherwise connected with or relating to carriage of goods by sea, whether the contract of carriage is executed or not, shall be within the admiralty jurisdiction of the court. [ix]

Merchant Shipping Act

The Merchant Shipping Act 2007 generally regulates merchant shipping issues and other labor related matters. [x] The Act established an Agency for Maritime Safety Administration, responsible for maritime safety, administration and security. [xi]

All ships operating commercially in or from the waters of Nigeria are required to obtain a certificate of license under the Act. [xii] The Minister[xiii] may by notice exempt generally or specifically from registration under this Act, a licensed Nigeria ship or a class of Nigerian ship when operating outside the waters of Nigeria. [xiv]

The Merchant Shipping Act is the principal legislation governing collision, [xv] including liabilities in collision cases in Nigeria. [xvi] Section 340 of the Act provides for rules as to division of loss as follows:

‘(1) Where, by the fault of two or more ships, damage or loss is caused to one or more of them, or to their cargo or freight, or to any property on board, the liability to make good the damage or loss shall be in proportion to the degree in which each ship was at fault-

(a) If, having regard to all the circumstances of the case, it is not possible to establish different degrees of fault, the liability shall be apportioned equally;

(b) Nothing in this section shall operate so as to render any ship liable for any loss or damage to which her fault has not contributed; and

(c) nothing in this section shall affect the liability of any person under a contract of carriage, or any contract, or shall be construed as imposing any liability upon any person from which he is exempted by any contract or by any provision of law, or as affecting the right of any person to limit his liability in the manner provided by law.

​​​​​​​(2) This section shall apply to Nigerian Government ships as it applies in the case of other ships.’

The Merchant Shipping Act further provides for limitation of actions in Nigeria for maritime claims or lien against a ship or its owners in respect of any damage or loss. Proceedings in respect of such damage or loss are to be commenced within two years from the date when the damage or loss or injury was caused or the salvage services were rendered. [xvii]

Nigerian Maritime Administration and Safety Agency Act

The Nigerian Maritime Administration and Safety Agency (NIMASA) Act 2007 provides for the promotion of maritime safety and security, protection in the marine environment, shipping registration and commercial shipping, maritime labor, the establishment of the Nigerian Maritime Administration and Safety Agency and related matters. Its objective is to develop indigenous commercial shipping in international and shipping trade. [xviii]

The NIMASA Act applies to all ships, whether small ships or crafts that are registered in Nigeria, and to all other ships flying a foreign flag in the Exclusive Economic Zone, territorial and inland seas, inland waterways and the ports of the country. [xix] The NIMASA is given the right under the Act to make regulations with approval of the Minister with regards to dumping of ship or generated waste into the Nigerian waters. [xx]

Section 22 of the Act provides for the functions and duties of the NIMASA. These functions and duties include: administering the registration and licensing of ships; regulating and administering the certification of seafarers; pursuing the development of shipping and regulatory matters relating to merchant shipping and seafarers; establishing maritime training and safety standards; regulating the safety of shipping as regards to the construction of ships and navigation; providing directions and ensuring compliance with vessel security measures; providing search and rescue services; carrying out air and coastal surveillance; controlling and preventing marine pollution; providing the direction on qualification, certification, employment and welfare of maritime labor; establishing the procedure for the implementation of conventions – the International Maritime Organization, the International Maritime Labor Organization and other international conventions to which Nigeria is a party on maritime safety and security, maritime labor, commercial shipping and for the implementation of codes, resolutions and circulars arising therefrom among others.

Coastal And Inland Shipping (‘Cabotage’) Act

The Cabotage Act 2003 regulates the activities of maritime transportation. The Act is established to: restrict the use of foreign vessels in domestic coastal trade; promote the development of indigenous tonnage; establish a cabotage vessel financing fund; and for related matters.

The main purpose of the Act is to promote Nigerian ship ownership and delimit the honor and use of foreign vessels in the Nigerian marine trade while boosting the nation’s economy through the ownership of ships and in the engagement of  the business of carriage of goods and services on the Nigeria inland waterways domain.[xxi] The Act empowers Nigerians involved in maritime activities to invest largely in domestic coastal trade, but it also allows Nigerians to manage vessels in collaboration with foreign partners.[xxii]

Other maritime legislations include: the Territorial Waters Act; the Oil in Navigable Waters Act 2004; the Nigeria Port Authority Act 1999; the Petroleum Act 1969; the Petroleum (Drilling and Production Regulation) Act; the Inland Fisheries Act 1992; and the Sea Fisheries Act 2004.

Enforcement of maritime laws and regulations

Jurisdiction of the Federal High Court

The Constitution confers exclusive civil jurisdiction in admiralty causes or matters on the Federal High Court, as noted. And by the provision of Section 19 of the Admiralty Jurisdiction Act, the Federal High Court shall exercise exclusive jurisdiction in admiralty causes or matters, whether civil or criminal. This provision of the Act is also confirmed by the Supreme Court in the case of TSKJ (Nig) Ltd v Otochem (Nig.) Ltd. [xxiii]

Recently, the Supreme Court was called upon in the case of L.L.S.P.I.A. Ltd v M/T Tuma[xxiv] to determine whether the Federal High Court has jurisdiction to hear matters on a claim for insurance premiums in respect of the ship or goods or cargoes carried by the ship. In that case the Supreme Court held as follows:

‘By virtue of section 2(1) and (3) (q) of the Admiralty Jurisdiction Act, 1991, a reference in the Act to a maritime claim is a reference to a propriety maritime claim or a general maritime claim. A reference in the Act to a general maritime claim is a reference to a claim for an insurance premium, or for a mutual insurance call, in relation to a ship or goods or cargoes carried by a ship. By the provisions, a claim for an insurance premium in relation to a ship or goods or cargoes carried by a ship relates to or falls under the category of general maritime claims. In the instant case, by virtue of section 2(3)(q) of the Admiralty Jurisdiction Act 1991, the appellant’s claim which was for an insurance premium fell within the ambit of a general maritime claim for which jurisdiction is conferred only on the Federal High Court. It did not fall within the scope of simple insurance contract as contended by the appellant. The claim was for an insurance premium arising from an insurance cover made in respect of the respondents’ vessel.’

Jurisdiction On Maritime Labor Claims

The National Industrial Court (NIC) was established as a superior court of record after an amendment to the Constitution of the Federal Republic of Nigeria (Third Alteration) Act. Section 254C (1) of the Constitution confers exclusive jurisdiction on the NIC to the exclusion of any other court in civil causes and matters:

‘a) relating to or connected with any labor, employment, trade unions, industrial relations and matters arising from workplace, the conditions of service, including health, safety, welfare of labor, employee, worker and matters incidental thereto or connected therewith; […]

​​​​​​​k) relating to or connected with disputes arising from payment or non-payment of salaries, wages, pensions, gratuities, allowances, benefits and any other entitlement of any employee, worker, political or public office holder, judicial officer or any civil or public servant in any part of the Federation and matters incidental thereto […]’

The aforementioned development has raised concerns regarding the right court (between the Federal High Court and the NIC) vested with jurisdiction to hear crew wage claims, and has led to conflicting decisions of the Federal High Court in the earlier cases of Moe O O & 26 Ors v  MV Phuc Hai Sun[xxv] and Assurance Foreigner Skuld v MT Cloder Pride.[xxvi] The court upheld the exclusive jurisdiction of the Federal High Court in the former case, while the exclusive jurisdiction of the NIC was upheld in the latter.

The Court of Appeal has now settled this jurisdictional issue in the case of The Vessel MT Sam Purpose (Ex Mt Tapti) & Anor V Bains & Ors. [xxvii] While holding that the NIC has the exclusive jurisdiction to determine claims for crew wages, the Court of Appeal held as follows:

‘Section 254C (1) (a) and (k) of the 1999 Constitution (as amended) gave the National Industrial Court exclusive jurisdiction over employee wages and other labor related matters. It is also clear from the said provisions that an action founded on claims for unpaid crew wages falls outside the Federal High Court’s jurisdictional competence. Section 2(3) (r) of the Admiralty Jurisdiction Act gives the Federal High Court jurisdiction over “a claim by a master, or a member of the crew, of a ship for (i) wages, or (ii) an amount that a person, as employer, is under an obligation to pay to a person as employee, whether the obligation arose out of the contract of employment or by operation of law, including by operation of a foreign country.” In this regard, this Section which differed from Section 254C (1) of the Constitution, which conferred the same jurisdiction on the National Industrial Court is void to the extent of its inconsistency. See OLORUNTOBA-OJU VS. DOPAMU & ORS (2008) LPELR 2595. Even though Section 251 of the Constitution provides for the admiralty jurisdiction of the Federal High Court, the express use of the word “notwithstanding” in Section 254C (1) clearly made the said Section 251 subject to the latter. It follows therefore that as used in Section 254C (1) of the 1999 Constitution, no provision of the Constitution itself or any statute or legislation shall be allowed to prevail over the provisions and neither shall it be capable of undermining the said Section 254C (1). The provisions of Section 254C (a) and (k) of the 1999 Constitution (as amended) in my humble view is undoubtedly to oust the jurisdiction of any other Court to adjudicate on matters listed therein.’

The implication of the aforementioned decision by the Court of Appeal is that crew claims for wages or other entitlements arising from their employment will no longer enjoy the benefits and status of a time-honored maritime claim enforceable by an action in rem. An action in rem allows a claimant not only to institute an action against a thing such as a vessel, but also has the right to arrest such vessel (or a sister vessel) subject to provision of adequate security as pre-judgment security for the claim. [xxviii]

Pending the time the issue is raised and settled at the Supreme Court, the decision of the Court of Appeal remains in force, which would appear to leave the flood gates open for jurisdictional challenges on the matter. It is well-settled law that the issue of jurisdiction can be raised at any time, even for the first time on appeal and without leave. [xxix]

Legal regime on international maritime conventions

International Maritime Organization

At the international level, the regulation of shipping and maritime activity is done through a specialized agency of the United Nations called the International Maritime Organization (IMO). [xxx] Its main role is to create a regulatory framework for the shipping industry that is fair and effective, universally adopted and universally implemented. [xxxi]

The IMO was established by means of a convention that was adopted under the auspices of the United Nations in 1948 and entered into force on 17 March 1958. [xxxii] The IMO has 175 Member States and three Associate Members. [xxxiii] Nigeria became a member on 15 March 1962.

Throughout its existence, the IMO has concentrated on technical issues relating to safety at sea and the prevention of pollution from ships.[xxxiv] Its most important treaties cover/apply to  more than 98 per cent of world shipping and it has been at the forefront for drafting conventions, treaties, protocols, codes and agreements securing the safety of international shipping and the marine environment through its specialized departments known as the Marine Safety Committee and the Marine Environment Protection Committee, respectively.[xxxv]

The adoption of the international rules by the IMO is to be implemented within the jurisdictional framework of the 1982 United Nations Convention on the Law of the Sea (UNCLOS) as well as in accordance with the two main IMO safety and anti-pollution treaties, respectively: the International Convention for the Safety of Life at Sea (SOLAS 1974) as amended; and International Convention for the Prevention of Pollution from Ships 1973 as modified by the Protocol of 1978 relating thereto and by the Protocol of 1997.

THE UN CONVENTION ON THE LAW OF THE SEA 1982

Nigeria was an active participant in the marathon third UN Conference on the Law of the Sea (UNCLOS III), having joined in the clamor for such a conference, as a result of the desire to be directly involved in the molding of a ‘new’ law of the sea.[xxxvi] For Nigeria, like most other newly independent developing states, this was premised on the belief that the ‘old’ law of the sea was simply a product of an ‘old boy network’ of a few developed maritime states.[xxxvii] After about nine years of intense negotiations, involving a highly complex negotiating process, the United Nations Law of the Sea Convention (LOSC) – ‘the constitution of the seas’ – was adopted on 30 April 1982 at Montego Bay, Jamaica.[xxxviii] Nigeria was one of the states that signed the Convention, which came into force on 16 November 1994, and it became a party to the Convention on 14 August 1986.[xxxix]

The 1982 Convention on the Law of the Sea constitutes a comprehensive codification and development of contemporary international law governing the sea in time of peace. [xl] A careful list of the main substantive provisions of the Convention, focusing on those introduced changes or new concepts in the traditional law of the sea would seem to include the following aspects: [xli]

The maximum width of the territorial sea is fixed at 12 miles and that of the contiguous zone at 24 miles;

A ‘transit passage’ regime for straits used for international navigation is established;

states consisting of archipelagos, provided certain conditions are satisfied, can be considered as ‘archipelagic States’, the outermost islands being connected by ‘archipelagic baselines’ so that the waters inside these lines are archipelagic waters;

a 200-mile exclusive economic zone, including the seabed and the water column, may be established by coastal states in which such states exercise sovereign rights and jurisdiction on all resource-related activities;

Other states enjoy in the Exclusive Economic Zone high seas freedoms of navigation, over flight, laying of cables and pipelines and other internationally lawful uses of the sea connected with these freedoms;

A rule of mutual ‘due regard’ applies to ensure compatibility between the exercise of the rights of the coastal states and of those of other states in the Exclusive Economic Zone;

The concept of the continental shelf has been confirmed, though with newly defined external limits;

The International Seabed Authority is the ‘machinery’ entrusted with the supervision and regulation of exploration and exploitation of the resources;

a series of very detailed provisions dealing with the protection of the marine environment setting out general principles and rules about competence for law-making and enforcement as well as on safeguards;

Detailed provisions concerning marine scientific research, based on the principle of consent of the coastal state, consent that should be the norm for pure research and discretionary for resource-orientated research; and

The ocean bottom beyond national jurisdiction is proclaimed to be the ‘Common Heritage of the Mankind’.

Under both the Geneva Convention on Territorial Sea, 1958 and the UN Convention on the Law of the Sea, 1982 there are the following seven maritime areas over which states can exercise their jurisdiction: [xlii] Base Line; [xliii] Inland Waters; [xliv] Territorial Sea; [xlv] Contiguous Zone; [xlvi] Exclusive Economic Zone; [xlvii] High Seas; [xlviii] and Continental Shelf. [xlix]

After the entry into force of the UN Convention on the Law of the Sea on 16 November 1994, strong efforts were made for the establishment of an International Tribunal for the Law of the Sea (ITLOS). The UNCLOS created ITLOS as part of its compulsory third-party dispute settlement system. [l] the ITLOS, headquartered in Hamburg, Germany, is fully operational. It has already adjudicated cases and reached judgments in them. [li] The Tribunal is open to all state parties to the 1982 UN Convention on the Law of the Sea.[lii]

 FUNCTIONS OF THE NIGERIAN MARITIME ADMINISTRATION AND SAFETY AGENCY (NIMASA)

• Pursue the development of shipping and regulatory matters relating to merchant shipping and seafarers.
• Administration and regulation of shipping licenses.
• Administration, Regulation and Certification of Seafarers.
• Establishment of Maritime Training and Safety Standards
• Regulation of safety of shipping as regards the construction of ships and navigation.
• Provision of Maritime Search and Rescue Services
• Provide direction and ensure compliance with vessels security measures
• Carry out Air and Coastal Surveillance
• Control and prevent Maritime Pollution
• Develop and implement policies and programs, which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure.
• Enhance and administer the provision of Cabotage Act. 2003
• Perform Port and Flag State duties.
• Provide Maritime Security.
• Establish the procedure for the implementation of conventions of the International Maritime Organization (IMO) and the International Labour Organization (ILO), and other international conventions to which the Federal Republic of Nigeria is a party on Maritime Safety and Security, Maritime Labour, Commercial Shipping, and for the implementation of Codes, Resolutions and Circulars arising there from.

 WHO QUALIFIED TO OWN REGISTERED NIGERIAN SHIPS?

The Merchant Shipping Act 2007 provides that the following are persons eligible to register Nigerian Ships:

1. Nigerian citizens
2. Bodies corporate established under and subject to Nigerian laws, having their principal place of business in Nigeria
3. Such other persons as the Minister of Transport may by regulations prescribe.

HOW TO REGISTER A SHIPPING COMPANY IN NIGERIA

The legal service unit of the Nigerian Maritime Administration and Safety Agency registers shipping companies/Agents provided that they have fulfilled all the requirements provided in the Agency’s guidelines.

For a company intending to carry out shipping activities to qualify for registration and issuance of an operating license, the company must be engaged mainly in the shipping business and submit the following documents:

• Completed NIMASA Form 1
• Current tax clearance certificate
• Certified true copy of Form CAC 7 (Particulars of Directors)
• Certified true copy of Certificate of Incorporation
• Certified true copy of Certificate of Incorporation
• Certified true copy of Memorandum and Article of Association of which the share capital must not be less than N25 Million, and the object of the company must be shipping.
• Latest Audited Report
• CAC Form 2.1 (Return of Allotment) where applicable
• Evidence that the company has filed its annual returns
• Evidence of registration as a licensed customs agent
• Joint venture Agreement where applicable
• Charter party agreement where applicable
• A reference from the bank

 PROCEDURE FOR REGISTRATION

• The shipping company or its authorized agent will submit the application to the General Manager of the Western Port or Eastern Ports
• The applicant will receive a debit note and make payment of N200, 000.00.
• Upon the confirmation of the payment, the Nigerian Port Authority issues a receipt to the applicant
• The Nigerian Port Authority (NPA) issues the original copy of the Certificate of Registration as a shipping company to the Applicant.

The License for registration will be issued within a period of two weeks from the date of registration on the premise that the company has provided all the documents as required.

Furthermore, where Shipping Company is registering under National Carrier status for the benefit of enjoying preferential rights or privileges accorded by the government, it must adhere to these requirements provided by the Agency:

1. The company must be registered in Nigeria
2. The company must be a fully owned Nigerian company with Nigerian equity ownership of at least 60%
3. The head office of the company must be in Nigeria; management and control must be directed from the head office.
4. The company must own at least one ocean- going vessel of not less than 5000 net registered tonnages.
5. The vessel must be registered in the Nigerian Vessel of ships
6. The terms and conditions of employment of seafarers engaged in the company are in conformity with Nigerian laws and accepted international rules and standards

The application to register as National Carrier is to be submitted with the following documents for registration:

• Completed NIMASA Form B1
• Current tax clearance certificate of the company
• Current tax clearance certificate
• Certified true copy of Form CAC 7 (Particulars of Directors)
• Certified true copy of Certificate of Incorporation
• Certified true copy of Memorandum and Article of Association of which the share capital must not be less than N100 Million, and the object of the company must be shipping.
• Latest Audited Report
• Evidence that the company has filed its annual returns

• Evidence of registration as a licensed customs agent
• Joint venture Agreement for oil or specialized lifting operations where applicable
• Copy of Current list of each owned vessel
• A reference from the bank

Registration Fees

The fees to be paid by a company with the intent to operate a shipping business are as follows:

• NIMASA Registration Form B1 which costs the sum of N10, 000.00 (Ten Thousand Naira)
• A registration fee of N100, 000.00 (One Hundred Thousand Naira)

Upon registration, a physical inspection will be carried out at the Head Office of the Company, where original DOCUMENTS submitted will be sighted and verified during the inspection.

Renewal of Registration

For a company to qualify for renewal of a license as a shipping company, the following documents must be submitted together with the prescribed fees:

• The companies tax clearance certificate
• Latest audited Account
• Evidence that the company has updated and paid its annual returns at the Corporate Affairs Commission
• Evidence that the company is not indebted to the Agency and has complied with payment of 2%, 3% statutory fee.

In conclusion, this article has provided a wide range of how to obtain maritime license. Maritime is a good business to venture into with the aid of this well spelt out guide.

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FAQ

What are the requirements to operate in the Nigerian shipping industry?

General Requirements

Many Nigerian Maritime Business Licenses have some common requirements:

• Company Registration: You will need a Certificate of Incorporation and Memorandum of Association (MEMART) from the Companies Documents Commission (CAC).
• Tax Compliance: A Tax Clearance Certificate (TCC) valid for at least 3 years is mandatory.
• Application: Send your application letter to the Director General (Eastern or Western Ports) of the Nigerian Ports Authority (NPA).

Licenses by sector

1.Shippers/Transport Agents: Although specific details may vary, expect the following requirements:

• NPA Registration Certificate: You must register your transport company with the NPA.

2. Licensed Customs Brokers: Customs licenses are under the Nigerian Customs Service (NCS). In addition to the general requirements, expect the following.

• Get confirmation: You will need a completed and approved NCS C1 form.

3. Ship Chandler to supply supplies and equipment to ships you will probably need:

• Completed Form C1: As with customs brokers, you will need NCS approval.

4. Customs terminal to obtain permission to use a customs warehouse for imported goods, you need:

• Taxpayer identification number (TIN): in addition to standard documents, a TIN is required.
• Insurance cover: proof of adequate insurance cover for the established terminal is required.

Processing time

The Nigerian Ports Authority normally processes licenses within 6 months.

Pricing

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– We have different packages/options available to suite your budget and business needs

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