Tag: NIMASA

 

The Supreme Court has okayed an appeal filed by the Nigerian Maritime Administration and Safety Agency (NIMASA) against a judgement of the Appeal Court transferring a case to the Federal High Court (FHC).

The Court of Appeal in Lagos, in its consequential order, had directed a Lagos State High Court to transfer a suit filed by two claimants against NIMASA and three others to the FHC for accelerated hearing and determination.

The appellate court held that the Lagos court had no jurisdiction to entertain the suit.

Dissatisfied with the appellate court judgment, NIMASA approached the Supreme Court for proper interpretation.

The regulatory agency named the claimants; the Integrated Oil and Gas Ltd and its Chairman, Cap. Emmanuel Ihenacho (rtd.), a former Minister of Interior, as 1st and 2nd respondents in the appeal.

In its appellant’s brief filed by Chief Emeka Ngige, SAN, NIMASA argued that Section 15 of Court of Appeal Act which the Appeal Court relied on was wrongly invoked as the trial Lagos State High Court lacked powers to transfer a matter to the Federal High Court.

The agency argued that there was no provision in the High Court Law which empower the trial court to transfer cases in which it lacks jurisdiction to the Federal High Court.

It submitted that while FHC could make an order transferring a matter in which it lacked jurisdiction to a state high court based on Section 22(2) of the Federal High Court Act (as amended), the latter court cannot make the same order of transfer under Section 22(3) of the Act.

On their part, the 1st and 2nd respondents, represented by Emmanuel Ekpenyong Esq. of the law firm of Fred-Young & Evans LP, urged the apex court to determine whether the court below rightly invoked the provisions in contest.

Ekpenyong, who prayed the court to dismiss the appeal, inter alia, submitted that Section 15 of the Court of Appeal Act vests the court below with the power to make any order in ensuring matters are determined on their merit.

“The consequential order made by the Court of Appeal was pursuant to its powers under Section 15 of its Act,” he said.

A five-panel member of the apex court, in a unanimous judgement delivered by Justice Moore Adumein, set aside the Appeal Court decision.

Although the apex court judgment was delivered on April 17, its certified true copy was sighted on Friday in Abuja.

The panel held that what the appellate court ought to have done was to strike out the suit, having found that the High Court of Lagos State had no jurisdiction to hear the suit.

“It should be noted that the general principle of law is that where a court lacks jurisdiction to entertain a cause or matter, the appropriate or proper order to make is to strike it out.

“It also is settled that the Federal High Court has the competence to transfer a cause or matter to a High Court of a state or the Federal Capital Territory, Abuja by virtue of Section 22 (2) of the Federal High Court Act (as amended).

“On the other hand, the High Court of a state, like the High Court of Lagos State, cannot transfer a cause or matter to the Federal High Court, where it has no jurisdiction to entertain it.

“And it has no rule of procedure which enables it to transfer the action, cause, matter or suit to the Federal High Court,” the apex court held.

The claimants; the Integrated Oil and Gas Ltd and the ex-minister had filed the suit marked: LD/ADR/91/2013 at the Lagos State High Court.

They named NIMASA, Ziakade Patrick Akpobolokemi, Barrister Callistus Nwabueze Obi and Hajia Lami Tumaka as 1st to 4th defendants respectively, and demanded N90 billion, N349 million in damages.

The claimants also sought an order of injunction compelling the defendants to publish a retraction and an apology on NIMASA’s website, Guardian, Thisday and Punch Newspapers over the arrest of the former minister and allegations of oil theft and involvement in illegal oil dealings against the company.

But the defendants filed statements of defence and preliminary objections challenging the competence of the suit.

NIMASA, in its objection, argued that the suit ought to be struck out because the Lagos High Court lacked jurisdiction to entertain the suit, and it was an abuse of court process in the light of pendency of another suit, marked: FHC/L/1177/2012, at Federal High Court in Lagos.

But Justice S.B.A Candide-Johnson of the Lagos State High Court dismissed the objection.

Dissatisfied with the ruling, NIMASA approached a Lagos Court of Appeal challenging the ruling.

The appellate Court, in its judgment, held that the appeal was meritorious.

The panel allowed the appeal and set aside the ruling of the trial court.

The appellate court further ordered that the suit be transferred to the Federal High Court Lagos Division for assignment by the FHC Chief Judge for accelerated hearing and determination.

It said the order was in line with the powers conferred on it by Section 15 of the Court’s Act and acting inconsonance with Section 22(3) of the Federal High Court Act 2005 (as amended).

 

Lagos:   The Nigerian Maritime Administration and Safety Agency (NIMASA) says it has selected 12 Primary Lending Institutions (PLIs) that will disburse the long-awaited Cabotage Vessels Financing Fund (CVFF) at a single-digit interest rate.

The Director-General of NIMASA, Dr Dayo Mobereola, disclosed this during a virtual meeting in Lagos on Monday.

Mobereola said that the move was to transform the maritime sector, emphasising that President Bola Tinubu’s administration, with the support of the Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, had secured approvals for the fund’s operationalisation.

The PLIs are the designated banking institutions for the disbursement.

Mobereola underscored the transformative potential of the initiative, stating that it would empower indigenous shipowners to compete more effectively and significantly boost local content within the maritime industry.

He noted that the CVFF is a loan facility with a single-digit interest rate, adding that the utilisation of which would be closely monitored.

According to him, its monitoring will ensure it achieves its intended objectives of fostering growth and capacity development among Nigerian operators.

“This demonstrates the establishment of clear frameworks for transparent, efficient, and impactful fund utilisation, directly empowering our indigenous shipowners,” Mobereola said.

He noted that the CVFF was established under the Coastal and Inland Shipping Act of 2003 to provide vital financial support for vessel acquisition and overall capacity building for Nigerian maritime businesses.

“Despite nearly two decades of regulatory hurdles and past challenges, we are now at the cusp of a new era,” he added.

According to the director-general, the CVFF disbursement is expected to generate significant employment opportunities for Nigerian seafarers and strengthen ancillary maritime services.

This, he maintained, would contribute to the overall growth of the nation’s blue economy.

He assured stakeholders that the CVFF implementation framework prioritises transparency and accountability, featuring a dedicated Secretariat Cabotage Unit, clearly defined eligibility criteria, and the strategic partnership with the 12 PLIs to streamline access to the funds.

Mobereola urged all prospective applicants to adhere to the established procedures through the designated financial institutions, reiterating that the CVFF is a strategic investment in maritime future and not a grant programme.

“The CVFF represents not just the end of a long wait but the beginning of a new era for Nigerian shipping,” he added.

Mr Jubril Abba, the Executive Director of Cabotage Services at NIMASA, explained that the fund is design to invigorate activities within the maritime space.

He commended the President and the minister for their decisive action in ensuring the disbursement to benefit indigenous maritime operators.

NIMASA’s Legal Consultant on CVFF, Mr Adedoyin Afun, elaborated on the Cabotage Act’s provisions, noting that it is specifically designed for Nigerian citizens.

Afun explained further thar the Act aims to promote the development of shipping within Nigeria’s territorial waters.

He clarified the key requirements: vessels must be owned, built, operated, and managed by Nigerians.

Afun also outlined NIMASA’s enforcement powers under the Act and highlighted that vessels must have been purchased within 12 months prior to loan application.

The financial consultant for the fund, Mr Yusuf Buhari, said that the CVFF aims to provide Nigerian shipowners with access to affordable financing, thereby reducing Nigeria’s reliance on foreign vessels for its coastal and inland shipping needs.

He explained the required applicant contributions, with NIMASA (CVFF) providing up to 50 per cent or a maximum of 25 million dollars, with no direct funding.

According to him, the loan tenure is set at eight years, and the currency will be translated to U.S. dollars to align with international best practices.

The 12 participating banks include First Bank, Fidelity, Zenith, United Bank for Africa (UBA), Jaiz Bank, and Lottos Bank, among others.

During his virtual contribution, Mr Aburime Ehimare, the Managing Director of Zenith Bank, stressed the importance of engaging stakeholders in a post-disbursement monitoring group to ensure the programme’s effectiveness.

He also raised the need for a security sharing formula to address potential challenges related to the vessels.

The President of the Nigeria Chamber of Shipping (NCS), Mr Aminu Umar, called on NIMASA to clearly state the terms and conditions of the disbursement to ensure stakeholders are well-informed.

A Safety Engineer, Mr Olu Aladelusi, suggested the inclusion of insurance considerations and loan refund terms.

The meeting ended with a technical demonstration of the application process for the stakeholders.