Supreme Court Hands States Control of Local Waterways in Landmark Judgment

Ololade Adeyanju/

Nigeria’s Supreme Court has delivered a landmark judgment that could significantly reshape the control, regulation and revenue structure of inland waterways across the country, ruling that the Federal Government cannot exercise sweeping authority over waterways located entirely within individual states.

In a split 5-2 decision delivered on Friday, the apex court declared Sections 12 and 13 of the National Inland Waterways Authority (NIWA) Act null and void to the extent that they sought to give the Federal Government and the National Inland Waterways Authority extensive proprietary and regulatory powers over intra-state waterways.

The suit was instituted by the Attorney-General of Lagos State alongside other states, challenging what they described as unconstitutional federal encroachment on waterways lying wholly within state boundaries.

The judgment is being viewed as a major constitutional and economic victory for states, especially Lagos, which has for years battled federal authorities over who controls ferry operations, licensing, levies and water transportation infrastructure on local waterways.

Although the full certified judgment was not immediately available, lawyers who spoke to Newsmakerslive.org said the Supreme Court effectively drew a constitutional line between waterways that cross state boundaries and those located entirely within a single state.

By striking down the disputed provisions, the court ruled that the Federal Government cannot rely on the NIWA Act to assume blanket ownership and control over all inland waterways in Nigeria.

The verdict means states can now regulate, license and collect revenues from waterways situated exclusively within their territories without interference from federal agencies.

The now-invalidated sections of the NIWA Act had granted the authority sweeping powers over land adjoining waterways, navigation rights and approval for activities carried out near rivers and creeks.

Section 13 notably stated that “no person, including a State”, could undertake certain activities around declared waterways without NIWA’s written consent.

Critics had long argued that the provisions effectively subordinated state governments to a federal agency in areas constitutionally reserved for states.

Friday’s ruling marks a dramatic shift from an earlier Supreme Court judgment delivered in January 2024 in the case between National Inland Waterways Authority and the Lagos State Waterways Authority.

In that case, the apex court upheld the Federal Government’s dominant role over inland waterways under the legal doctrine known as “covering the field”.

The judgment invalidated aspects of Lagos State’s waterways regulations and prevented the state from imposing separate levies or licensing requirements that conflicted with federal law.

That ruling triggered concerns among state governments and private operators, many of whom complained about overlapping regulations, multiple taxation and uncertainty over operational authority.

Friday’s verdict substantially narrows the scope of that earlier decision by affirming that states retain residual constitutional powers over waterways that do not extend beyond their borders.

The decision is expected to have far-reaching consequences for transportation, commerce, urban planning and revenue generation across coastal and riverine states.

In Lagos State particularly, where water transportation has become increasingly important because of worsening road congestion, the ruling could strengthen the authority of the Lagos State Waterways Authority over ferry operations, jetty licensing and safety enforcement.

The judgment could also reduce regulatory conflicts that have for years frustrated boat operators and investors.

Before now, operators frequently complained about being compelled to obtain approvals or pay levies to both state authorities and NIWA for the same routes and activities.

The ruling has reinforced Nigeria’s federal structure by recognising that not all waterways automatically fall under exclusive federal legislative control.

However, the judgment retains Federal Government’s authority over navigable waterways linked to interstate commerce, international trade and federal navigation routes.

The judgment is also expected to influence future constitutional disputes involving federal agencies and state governments over resource control, taxation and infrastructure regulation.