• by Zingtim Gambo. ACArb.

Vessel Acquisition: Meaning and Scope

Vessel acquisition refers to the process of acquiring ships or boats for use in maritime activities. This can include purchasing new vessels, leasing existing vessels, or engaging in joint ventures to acquire vessels for various purposes such as voyage, exploration, and fishing. Vessel acquisition is an important aspect of the maritime industry in Nigeria, as the country relies heavily on maritime voyage for its economic activities.

Nature of Vessel Acquisition in Nigeria

Nigeria is strategically located along the coastline of the Atlantic Ocean, with vast maritime resources that can be harnessed for economic development. The acquisition of vessels in Nigeria dates back to the pre-colonial era when indigenous tribes used canoes and boats for fishing, transportation, and trading activities.

However, with the advent of colonialism and modernization, the need for more sophisticated vessels became apparent, leading to the importation of large ships and boats for commercial and industrial purposes. The Nigerian government has put in place various laws and regulations to govern vessel acquisition in the country, with the aim of promoting local content development and protecting the interests of Nigerian stakeholders in the maritime industry.

Laws Guiding Vessel Acquisition in Nigeria

One of the key laws regulating vessel acquisition in Nigeria is the Cabotage Act of 2003. This law requires all vessels operating in Nigerian waters to be owned and operated by Nigerian citizens or registered Nigerian companies. The Cabotage Act also mandates that all vessels involved in domestic coastal trade must be built, owned, and crewed by Nigerians. This law is aimed at promoting the development of Nigeria's maritime industry and creating opportunities for local businesses and individuals to participate in maritime activities.

Yet another law is the Merchant Shipping Act of 2007, which provides the legal framework for the registration, ownership, and operation of vessels in Nigerian waters. The Act stipulates the requirements for vessel registration, the qualifications for vessel owners and operators, the safety standards for vessels, and the penalties for non-compliance with maritime regulations.

The Role of NIMASA

The Nigeria Maritime Administration and Safety Agency (NIMASA) is the government regulatory agency responsible for regulating vessel acquisition and usage in Nigerian waters. NIMASA issues licenses and permits to vessel owners and operators, conducts inspections and surveys of vessels, and enforces compliance with maritime laws and regulations.

Challenges Facing the Maritime Industry in Nigeria

Despite the existence of the Cabotage Act and other laws regulating vessel acquisition in Nigeria, there are still challenges facing the maritime industry in the country. These include:

• • High cost of vessel acquisition
• • Inadequate infrastructure
• • Limited access to financing
• • Lack of skilled manpower
• • Corruption and bureaucratic red tape

Solutions to these Challenges

To address these challenges and promote the effective acquisition of vessels in Nigeria, there is a need for a comprehensive strategy that involves the government, private sector, and other stakeholders in the maritime industry. This strategy should focus on improving infrastructure, providing access to affordable financing, enhancing skills development, and promoting local content development in the maritime sector in Nigeria.