Section 10: Penalty for acquiring ownership if unqualified

(1)
If any person who is not qualified to own a registered Nigerian ship acquires as owner, any interest, in a ship legal or beneficial, otherwise than by such transmission as is provided for in this Part of this Act:
(a)
which is registered in Nigeria and owned wholly by persons qualified to own a registered Nigerian ship; and
(b)
which uses the national colours and assumes the national character of Nigeria, that interest is liable to forfeiture.
(2)
Nothing in this section shall be construed as prohibiting a Nigerian ship which is exempted from registration under this part of this Act, from using on the coast or inland waters of Nigeria, the national colours of Nigeria, or any other national colours which any ship is for the time being entitled to wear in accordance with any Act or rule of law.