Section 1: Ensigns for use on Nigeria ships.

Flags as evidence of nationality of Nigerian ships, other than ships of the Nigerian Navy or Naval Reserve to be worn on all lawful occasion, shall be classed as ensigns distinguished by the colour of their respective grounds; and-(a) for ships owned by any of the Governments of Nigeria, the flag shall have a blue ground with the national flag filling the top left-hand corner and quarter of the hoist, and be known as the blue ensign;
(b) for ships other than those owned by any of the Governments of Nigeria, the flag shall have a red ground with the national flag filling the top left-hand corner and quarter of the hoist, and be known as the red ensign,
and unless regulations made under this Act otherwise prescribe, a ship affected by this subsection shall display the ensign appropriate to be worn by it.