Dakuku Peterside, the director-general of the Nigerian Maritime Administration and Safety Agency (NIMASA), has commended the judgement of the Federal High Court in the case involving Seadrill Mobile Unit Nigeria Limited and the Federal Ministry of Transportation (FMOT), which confirmed NIMASA’s right to collect levies from drilling operations.
He described the judgement as a landmark attempt by the judiciary to set the record straight and boost implementation of the Coastal and Inland Shipping Act (Cabotage), which in turn will generate opportunities for jobs.
The suit instituted by Seadrill was to determine whether drilling operations falls within the definitions of “Coastal Trade” and “Cabotage” under Cabotage Act, and whether on a proper interpretation of the Cabotage Act, drilling operations falls within the definition of “vessels”.
Presided by Justice Babs Keuwumi, the court ruled that drilling operations fell within the ambit of exploration, exploitation, or transportation of mineral or non-living natural resources of Nigeria, whether in or under Nigerian waters.
Similarly, the court held that the combined reading of the Admiralty Jurisdiction Act, Interpretation Act, and Cabotage Act meant that drilling rigs fell under the definition of vessel in the Cabotage Act.
The court however granted NIMASA right to collect all outstanding payment of the 2 percent Cabotage surcharge from owners of drilling rigs and associated platforms.
Reacting to this, Peterside said the judgement marked the opening of an important opportunity for job, incomes, and economic growth in Nigerian maritime sector.
He appealed to persons engaged in inland trade to pay their Cabotage fees, even as he reaffirmed the Agency’s commitment to the enthronement of global best practices in the Nigerian maritime sector.
“We expect that with this judgement, all parties will obey the court order and do the needful for the growth of the maritime sector,” he said.
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