Section 23: Ownership Requirements

(1) Subject to sections 9-12 a vessel shall not be registered for use in the domestic trade unless the minister is satisfied that-
(a) the vessel is wholly and beneficially owned by Nigerian citizens or by a company wholly and beneficially owned by Nigerian citizens and a vessel or company is wholly and beneficially owned by Nigerian citizens where all the shares in the vessel and the company are held by Nigerian citizens free from any trust or obligation in favour of any person not a citizen of Nigeria ;
(b) the vessel is on bareboat charter to Nigerian citizens and is under the full control and management of Nigerian citizens or a company wholly and beneficially owned by Nigerians in terms of subsection (1)(a) ;
(c) the vessel is owned by a company registered in Nigeria and the percentage of shares in the company owned by Nigerian citizens is not less than 60 per centum ;
(d) any foreign vessel is licenced in compliance with Part II of this Act ;
(e) the vessel is exclusively manned by officers and crew of Nigerian citizenship except where Section 10 applies ; and
(f) the vessel possesses all certificates and documents in compliance with international and regional maritime conventions to which Nigeria is a party including all safety and pollution requirements imposed by a Nigerian law and any international convention in force.
(2) A vessel shall not be registered for use in the domestic trade unless the controlling interest in the company is owned by Nigerian Citizens.
(3) (3) The controlling interest shall not be deemed to be vested in Nigerian Citizens-
(i) if the title to a majority of the shares thereof or 60 per centum are not held by such citizens free from any trust or fiduciary obligation in favour of any person not a citizen of Nigeria; or
(ii) if the majority of the voting power in such company is not held by citizens of Nigeria; or
(iii) if through any contract or understanding it is so arranged that more than 40 per centum of the voting power may be exercised, directly or indirectly on behalf of any person who is not a citizen of Nigeria; or
(iv) if by any other means whatsoever control of any interest in the company in excess of 40 per centum is conferred upon or permitted to be exercised by any person who is not a citizen of Nigeria