The Supreme Court has awarded the Federal Government complete jurisdiction over all national waterways, granting it the authority to impose levies and issue licenses to operators within this sector.

In a significant ruling last Friday on the appeal SC/CV/17/2018, the court emphasized that States do not possess the constitutional authority to enforce levies on enterprises operating within the nation’s inland waterways.

This appeal was presented by the National Inland Waterways Authority (NIWA), the Nigerian Maritime Standard and Safety Agency (NMSSA), the Minister of Mines and Steel Development, and the Minister of Transport.

The respondents in the case included Lagos State Waterways, the state’s Commissioner for Waterfront Infrastructure Development, the state’s Attorney-General, the Governor of Lagos State, the Incorporated Trustees of the Association of Tourist Boat Operators and Water Transportation of Nigeria (ATBOWTN), and the Incorporated Trustees of the Dredgers Association of Nigeria (DAN).

The Supreme Court concluded that it was incorrect, unlawful, and illegitimate for states to attempt to regulate the sector and impose levies.

The appeal, initiated in 2018, was advocated for by a legal team headed by the current Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN. In the pivotal judgment, authored by Justice Inyang Okoro and presented by Justice Emmanuel Agim, the Supreme Court affirmed that the Nigerian Inland Waterways Authority (NIWA) is the sole entity tasked with imposing levies and charges for utilization along designated waters.

Furthermore, the Court underscored that NIWA is the rightful and lawful Federal Government agency vested with the exclusive mandate to oversee, regulate, and manage all operations within the navigable waters and their corridors nationwide for inland navigation. These powers are delineated in Sections 8 and 9 of the NIWA Act.

In its ruling, the Supreme Court affirmed that NIWA holds the exclusive authority, as per Sections 8 and 9 of the NIWA Act, to manage and control all operations on navigable waters and their passages nationwide for inland navigation.

Moreover, the apex court supported Fagbemi, SAN, stating that the actions taken by the Lagos government and its entities were a clear violation and unlawful interference with NIWA’s statutory responsibilities.

This assertion was grounded in the understanding that the waterways of Lagos State, like those in other parts of Nigeria, are within the Exclusive Legislative List detailed in Part 1 of the Second Schedule to the 1999 Constitution.

The Supreme Court emphasized that only the Federal Government, via the National Assembly, possesses the legislative authority over Maritime Shipping and Navigation. This highlighted that the Lagos State Government lacked the jurisdiction to legislate on matters listed exclusively under the National Assembly.

Additionally, the court pointed out that the current laws did not support the arguments presented by the Lagos government regarding resource control.

It suggested that political stakeholders, including the Legislature, could explore avenues to amend the laws to address the concerns raised by Lagos and other entities regarding this issue.

The Supreme Court reinstated the March 28, 2014, judgment made by Justice John Tsoho of the Federal High Court in Lagos and overturned the July 18, 2017, decision of the Court of Appeal (Lagos Division) that had set aside the Federal High Court’s ruling.

The Appellants contended that the creation of the Lagos State Waterways Authority (LASWA) by the enactment of LASWA Law No. 14 of 2008 (LASWA 2008) by the state’s House of Assembly to oversee all aspects of the waterways in Lagos State was unconstitutional.

They argued that the inland waterways in Lagos State, not covered by the National Inland Waterways Act, fall under the legislative authority of the state’s Legislature.

In light of facing a system involving various fees imposed by both Federal Government and Lagos State agencies, the Association of Tourist Boat Operators and Water Transportation of Nigeria (ATBOWTN) and the Dredgers Association of Nigeria (DAN) pursued a case marked: FHC/L/CS/543/2012 in the Federal High Court in Lagos.

Their objective was to ascertain, based on existing laws, which level of government possessed the authority to license and impose charges on business operators within the country’s inland waterways.

In his ruling on the case dated March 28, 2014, Justice Tsoho stated that among other points, NIWA and NMSSA were the legitimate and rightful agencies with jurisdiction over the commercial endeavors of ATBOWTN and DAN. These organizations engage in water tourism, water transportation, and sand dredging activities within the national inland waterways.

Furthermore, Justice Tsoho prohibited the Lagos State Waterways Authority and the state’s Commissioner for Waterfront Infrastructural Development from continuing their attempts to regulate the commercial operations of the plaintiffs – ATBOWTN and DAN.

The decision made by Justice Tsoho was overturned on July 18, 2017, through an appeal (marked: CA/L/886/2014) filed by the Governor of Lagos State and three others.

In response to this reversal, NIWA and the three other appellants pursued the case further, bringing it before the Supreme Court. In the recent ruling delivered last Friday, the Supreme Court reaffirmed the initial judgment handed down by the high court.