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In Noble Drilling v NIMASA the court held that a rig that floats or can be towed is not a vessel unless used for marine navigation to carry persons or property.
The Supreme Court of Nigeria has held that offshore drilling rigs do not qualify as “vessels” under the Coastal and Inland Shipping (Cabotage) Act 2003 merely because they float or can be moved across water. The decision, in Noble Drilling (Nigeria) Limited v Nigerian Maritime Administration and Safety Agency, was reported in September 2026 by the Commercial Law Reports Nigeria in association with ALP NG & Co. The panel comprised Garba, Abubakar, Nwosu-Iheme, Tsammani and Tukur JJSC.
Background
Noble Drilling sued NIMASA and the Minister of Transport at the Federal High Court, Lagos, seeking declarations that its drilling operations were not “coastal trade” or “cabotage” and that its rigs were not “vessels” under the Act, and an injunction against enforcement, including the 2% cabotage surcharge. The trial court granted the reliefs. The Court of Appeal held that the trial court lacked jurisdiction because of defective service of the originating summons. On further appeal, NIMASA and the Minister cross-appealed on the substantive question.
The holding
NIMASA argued that the statutory definition of vessel, which “includes” craft “without regard to method or lack of propulsion”, covered jack-up and semi-submersible rigs. The Supreme Court disagreed. To be a vessel, a rig must be “designed, used or capable of being used solely or partly for marine navigation for the carriage of persons or property”. Marine navigation involves movement across water as a medium of transit; a rig towed into position and then fixed to the seabed by jacking down its legs is not used for navigation, or “every floating dock, pontoon, barge or raft would automatically become a vessel”. In the court’s words, drilling rigs “may float, but they do not sail; they may host personnel, but they do not carry them”. NIMASA’s attempt to characterise drilling as “vertical carriage” was inconsistent with the statute.
Why it matters
The decision settles a long-running dispute over whether drilling contractors must comply with cabotage requirements on Nigerian ownership, crewing and build, obtain waivers and pay the 2% surcharge on contract value. Drilling contractors and operators may now reassess cabotage waivers and surcharge payments on rig contracts, and consider whether past payments are recoverable, subject to limitation periods and the terms of any settlements. Supply vessels, crew boats and other craft that carry persons or goods to rigs remain within the Act.
The published summary does not set out the final orders on the main appeal. Parties relying on the decision should obtain the full judgment. Counsel were Chisa Uba for Noble Drilling and Adolphus Nwachukwu for the respondents.
Dentons ACAS-Law has been reported as representing Noble Drilling through the Federal High Court, Court of Appeal and Supreme Court, with a team including Chisa Theodora Uba, Isaac Abbot Ogbobula and Nnagozie Azih. The Meridian has not located the firm’s own published announcement, so the attribution should be treated as unconfirmed.
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