Throughout August 2019 the Nigerian media heavily reported on the US government's actions against Nigerian nationals who have been accused of committing various acts of fraud. Of particular note is the arrest of a successful Nigerian entrepreneur and the US Department of Justice's recent federal grand jury indictment against 77 named and three unnamed individuals reported to be Nigerians.
During Federal Attorney General Abubakar Malami's recent confirmation appearance before the Senate he was asked why the administration had failed to comply with court orders and responded that they were not in the public interest. Although heavily criticised, Malami's statements are unsurprising, given how he used Executive Order 6 in his first term to indiscriminately prevent persons not accused of wrongdoing from accessing bank accounts without recourse to the courts.
The general Nigerian economic landscape could be seen as challenging, but its robustness and potential make it worthwhile for parties that do their research. As the Nigerian ship charter market is estimated to be worth at least $10 billion, there is a lot of potential for interested parties to benefit.
Mergers are one way in which companies can increase their revenue and expand their business. However, along with these benefits, there are a number of risks associated with the merger of two or more businesses, including a loss of customers and key employees and business interruptions. This article discusses the challenges and practical realities of managing employees during a merger.
The president recently assented to the Suppression of Piracy and Other Maritime Offences Bill, successfully concluding almost a decade of advocacy to implement such a law in order to curb and deter sea piracy, armed robbery and other unlawful acts at sea. The new law has ended the controversy around whether the crime of sea piracy is defined in any local legislation and bestowed on the Federal High Court exclusive jurisdiction to determine matters of armed robbery and other unlawful acts at sea.
A recent Federal High Court decision has raised doubts as to the legality of foreign currency-denominated facilities. The Central Bank of Nigeria Act makes it clear that the naira is the currency of payment for the domestic supply of goods and services in Nigeria. However, the designation of the naira as legal tender in Nigeria does not suggest that the use of any other currency as a medium of exchange within Nigeria is prohibited.
Wrecks pose a real danger to navigational safety and the marine environment and their expeditious removal, control and management is therefore a key concern. The issue of wreck control in Nigeria has been the subject of an increasingly fierce conflict between the Nigerian Inland Waterways Authority, the Nigerian Maritime Administration and Safety Agency and the Nigerian Ports Authority.
A tripartite arrangement between the Federal Ministry of Finance, the Customs Service and the Nigerian Maritime Administration and Safety Agency (NIMASA) seeks to encourage the expansion of Nigeria's indigenous fleet by creating a special tariff regime for vessel acquisition in the country. According to NIMASA Director General Dakuku Peterside, the high cost of vessel acquisition is gradually driving away many indigenous players in the maritime sector.
The Nigerian Maritime Administration and Safety Agency has announced a five-year strategic plan to stop the issuance of cabotage waivers. This plan appears to be a tacit admission that the waiver regime – which was intended to be a stop-gap measure pending the development of indigenous capacity – is derailing the country's lofty cabotage goals. Nonetheless, the cessation of the issuance of cabotage waivers represents a significant shift in policy.
After years of inaction and many questions as to why the Nigerian authorities have done nothing to pursue Nigerian wrongdoers in a 21-year corruption case involving oil giant Shell Nigeria Ultra Deep Limited and Italian company ENI SpA, it appears that the Nigerian authorities have finally decided to pursue criminal proceedings against Nigerian parties. In April 2019 the Abuja High Court issued orders for the arrest of former Petroleum Minister Dan Etete Etete and Attorney General Mohammed Bello Adoke.
The Nigerian Maritime Administration and Safety Agency (NIMASA) recently issued a marine notice to further the Cabotage Act's objectives and to ensure strict compliance. It is expected that this notice would, among other things, ensure greater compliance with the cabotage regime and drive wider indigenous participation in offshore marine operations. However, as the NIMASA has not introduced a fine or other punishment for non-compliance, full compliance with the notice cannot be guaranteed.
In 2013 the National Industrial Court (NIC) ushered in a new labour law regime with regard to workplace sexual harassment when it held an employer vicariously liable for acts of sexual harassment perpetrated against one of its employees. Based on the NIC's decision, employers which learn of workplace sexual harassment and take no administrative decision to investigate it may be liable for breaching their duty of care to their employees by failing to protect their fundamental rights.
It is clear from the #metoo #hertoo and #timesup campaigns – as well as the numerous allegations of sexual harassment levied against perceived industry leaders – that combating sexual harassment is a global concern. Thankfully, it seems that such conduct will no longer be condoned, considered tenable or swept swiftly and easily under the corporate carpet. This article examines employees' rights in the workplace under Nigerian law.
In a bid to promote a sound financial system and enhance access to financial services for low-income earners and the unbanked segments of the Nigerian population, the Central Bank of Nigeria recently issued the Guidelines for Licensing and Regulation of Payment Service Banks (PSBs) in Nigeria. The main objective of establishing PSBs is to enable high-volume, low-value transactions in remittance, micro-saving and withdrawal services in a secured technology-driven environment.
It is not uncommon for shipowners to incur liability for acts or omissions for which neither they nor their employees are directly responsible. This is particularly common in the compulsory pilotage field. However, even in cases where liability cannot be disputed, shipowners may be entitled to limit their liability or, in some cases, escape it entirely.
In late 2018 the president declined to assent to the National Transport Commission Bill (which the Senate had passed in March 2018). The president cited the need to review certain fiscal provisions set out in the bill, as well as concerns over the duplication of functions which already fell within the statutory mandates of existing agencies. The Senate recently formally reapproved the bill after examining it in view of the president's observations.
Voyaging in West African waters, particularly the Gulf of Guinea, is considered dangerous and raises the question of whether shipowners are entitled to put armed guards on board their vessels to protect them from attacks by arms-bearing third parties. Considering reported attacks of armed robbers at sea, kidnappings for ransom and other criminal occurrences in Nigerian waters, shipowners and operators have explored how to optimise the protection of both ships and cargo.
Shipowners whose ships have caused damage will not want their ship to be arrested, but also will not want to pay damages to the extent of the actual claim. Luckily, shipowners can ensure that their ships are not arrested and at the same time significantly limit the total amount payable. To cap it all off, shipowners do not have to accept liability. If this is not having your cake and eating it, then nothing is.
In view of the increasing focus on cybersecurity worldwide and the rise in cyber threats both in and outside Nigeria, the Central Bank of Nigeria recently issued a draft risk-based framework and guidelines on cybersecurity for deposit money banks and payment service providers. The draft guidelines aim to complement and build on the Cybercrimes (Prohibition, Prevention) Act 2015 by promoting cybersecurity and protecting computer systems and networks and electronic communications.
A foreign employee recently secured a landmark judgment in the National Industrial Court in relation to redundancy benefits that he had claimed while employed by the defendant. The judgment reinforces the well-established principle of interpreting the plain and ordinary meaning of employment contracts and strengthens the position of local and foreign employees seeking to enforce their rights where these are clearly provided for in their respective employment contracts, policies or handbooks.