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ARTICLE · 28 OCTOBER 2011

Nigerian Courts Continue To Develop The Law In Relation To Cabotage*

ADE AFUN
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The Federal High Court in the recent case of NOBLE DRILLING (NIGERIA) LIMITED V THE NIGERIAN MARITIME ADMINISTRATION AND SAFETY AGENCY (NIMASA) & THE MINISTER OF TRANSPORTATION1 provides clarity on Sections 2, 5 and 22(5) of the Coastal and Inland Shipping (Cabotage) Act, Cap. C51, Laws of the Federation of Nigeria, 2004 (Cabotage Act).

NigeriaTransport
Ade Afun
Ade Afun

The Federal High Court in the recent case of NOBLE DRILLING (NIGERIA) LIMITED V THE NIGERIAN MARITIME ADMINISTRATION AND SAFETY AGENCY (NIMASA) & THE MINISTER OF TRANSPORTATION1 provides clarity on Sections 2, 5 and 22(5) of the Coastal and Inland Shipping (Cabotage) Act, Cap. C51, Laws of the Federation of Nigeria, 2004 (Cabotage Act)2.

Prior to this decision, NIMASA's position was that the Cabotage regime applied to every commercial activity on, in or under Nigerian territorial waters and as a result, required all operators of all drilling rigs operating in Nigerian territorial waters to register with NIMASA.

The facts of the case are as follows:

The Plaintiff, Noble Drilling (Nigeria) Limited, an offshore drilling contractor operating in the Nigerian oil and gas industry, was of the opinion that its activities within Nigerian territorial waters (drilling operations) did not amount to "coastal trade" or "cabotage" as defined under the Cabotage Act. The

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