A recent Supreme Court ruling on the powers of the National Inland Waterways Authority (NIWA) could significantly alter Nigeria’s investment landscape for waterfront developments by ending years of overlapping regulatory demands on land adjoining waterways, according to an analysis by the Chairman of Alliance for Economic Research and Ethics LTD/GTE, Dele Oye.
In his analysis, Oye pointed out that the apex court’s decision in Lagos State v. Federal Government has introduced a more streamlined and state-led framework for investors developing non-navigational projects near waterways.
Pinnacle Daily reports that the Supreme Court, on May 22, delivered the judgment in Suit No. SC/CV/541/2025 filed by Lagos State against the Federal government over the constitutional limits of federal authority on inland waterways and adjoining lands within states.
In its judgment, the apex court nullified Sections 12 and 13 of the NIWA Act, ruling that the Federal government cannot exercise authority over lands adjoining waterways for purposes beyond navigation, maritime activities and fishing.
According to Oye, who is a legal practitioner, entrepreneur, and business advocate, the judgment could have major implications for investors in waterfront real estate, hospitality, agriculture and industrial projects, many of whom have long grappled with overlapping approvals from federal and state authorities.
“For years, investors in waterfront real estate, hospitality, agriculture, and industry have faced a nightmare of dual permitting,” he said, noting that developers often had to secure state land titles while also seeking NIWA approvals for adjoining land use.
He argued that the ruling changes that landscape by clarifying that state governments are now the sole competent authorities for land-related approvals on adjoining waterways where the intended use is non-navigational.
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“The perpetual injunction provides judicial clarity that statute cannot,” Oye stated. “Investors can now rely on state governments as the sole competent authority for land-related permits adjoining waterways.”
He stressed that this could reduce transaction costs, eliminate regulatory duplication and restore greater predictability to waterfront investment decisions.
Under the framework outlined in the document, state governments retain authority over land allocation, physical planning approvals, environmental regulation and development control for non-navigational activities adjoining waterways.
Investors would therefore obtain land titles, certificates of occupancy and planning permits through state institutions.
However, Oye noted that the ruling does not remove NIWA’s constitutional role over navigational and maritime matters.
According to the document, NIWA retains “full competence” over navigation and shipping, maritime activities, fishing on waterways, dredging for navigability, vessel operations, inland port functions, and the licensing of jetties, piers and related infrastructure.
He also noted that projects involving both land development and waterway access may still require engagement with multiple authorities.
For example, a waterfront factory or residential estate that includes a jetty, marina, or dredging component would continue to require NIWA approvals for those navigation-related elements, even as land and development approvals remain under state jurisdiction.
He advised investors involved in such mixed-use developments to seek legal guidance and clearly separate the navigational components of projects from the land-development aspects.
He described the judgment as a broader constitutional recalibration with implications beyond Lagos State, noting that the court’s order extends to “other states of the federation.”
“For investors, this ruling transforms waterfront land from a regulatory minefield into a predictable asset class,” Oye said.
He also urged state governments to issue administrative guidelines clarifying their authority over adjoining lands used for non-navigational purposes, while calling on the National Assembly to formally repeal the sections of the NIWA Act already voided by the court.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X