Nigeria’s Supreme Court has delivered a landmark judgment redefining the control and regulation of inland waterways across the country.
In a split 5-2 decision delivered on Friday, the apex court ruled that the Federal Government does not have the constitutional authority to regulate waterways located entirely within a single state. The judgment effectively limits federal oversight to interstate and international navigable waterways.
The court struck down Sections 12 and 13 of the National Inland Waterways Authority (NIWA) Act, declaring them unconstitutional on the grounds that they unlawfully encroached on the residual powers of state governments.
The ruling marks a significant victory for states with active water transportation systems, particularly Lagos State, which has long battled the National Inland Waterways Authority (NIWA) over ferry operations, licensing, and revenue collection through the Lagos State Waterways Authority (LASWA).
With the judgment, states now have exclusive authority to regulate and manage intra-state waterways without interference from the Federal Government. Industry stakeholders say the decision will eliminate regulatory conflicts and multiple taxation that have discouraged investment in the sector.
The Supreme Court also clarified that its ruling narrows the scope of an earlier January 2024 decision that appeared to favour broader federal control over inland waterways.
Legal analysts describe the verdict as a major boost for true federalism in Nigeria, arguing that decentralised control will encourage infrastructure development, urban transportation planning, and private-sector investment in water transport systems across the states.
The decision is expected to significantly reshape Nigeria’s maritime and transportation landscape in the years ahead.
