Ship mortgages remain an important instrument in maritime finance, providing lenders with security for funds advanced to shipowners. However, the enforcement of these interests under Nigerian admiralty law may be affected by competing maritime claims, including maritime liens, possessory claims and the costs associated with ship arrest and judicial sale.
In an article titled “Ship Mortgages and Proprietary Maritime Claims Under Nigerian Admiralty Law,” Oyetola Muyiwa Atoyebi, SAN, FCIArb (U.K.), Notary Public, examines the legal framework governing ship mortgages in Nigeria and the extent to which mortgagees are protected when seeking to recover their investments.
The article considers how registered ship mortgages may be enforced through ship arrest and judicial sale, while highlighting the priority that certain claims may enjoy over a registered mortgage. These competing interests can create significant recovery risks for lenders and make it necessary to understand the ranking of claims against a vessel.
It also emphasises the importance of proper mortgage registration, maritime due diligence and compliance with applicable legal requirements in protecting lenders’ interests and reducing the risks associated with ship-mortgage transactions.
The central issue is the extent of protection afforded to a registered mortgage when other maritime claims are brought against the same vessel.
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Read the full article: Ship Mortgages and Proprietary Maritime Claims Under Nigerian Admiralty Law
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