When Is A Rig Not A Vessel?

The Question and the Answer

For more than a decade, one question has sat at the centre of Nigeria’s offshore cabotage regime: when does a drilling rig become a “vessel” for the purposes of the Coastal and Inland Shipping (Cabotage) Act, 2003 (the Cabotage Act)?

The answer matters commercially as much as legally. Classification as a vessel under the Act triggers Nigerian registration requirements, ownership and manning thresholds, waiver applications for foreign operators, and an obligation to remit a surcharge of 2% of contract value into the Cabotage Vessel Financing Fund administered by the Nigerian Maritime Administration and Safety Agency (NIMASA).

In December 2025, the Supreme Court of Nigeria, in Noble Drilling (Nigeria) Ltd v. NIMASA & Anor, delivered the clearest answer yet under the current Act. On the facts before it, the Court held that the jack-up and semi-submersible rigs in issue, and the drilling operations conducted by them, did not constitute “vessels” or “coastal