{"id":17671,"date":"2025-03-28T16:02:00","date_gmt":"2025-03-28T15:02:00","guid":{"rendered":"https:\/\/maritimafrica.com\/en\/?p=17671"},"modified":"2025-03-28T16:02:00","modified_gmt":"2025-03-28T15:02:00","slug":"nimasas-crusade-to-end-war-risk-insurance-premiums-to-save-nigeria-over-400-billion-annually","status":"publish","type":"post","link":"https:\/\/maritimafrica.com\/en\/nimasas-crusade-to-end-war-risk-insurance-premiums-to-save-nigeria-over-400-billion-annually\/","title":{"rendered":"NIMASA\u2019S CRUSADE TO END WAR RISK INSURANCE PREMIUMS TO SAVE NIGERIA OVER $400 BILLION ANNUALLY"},"content":{"rendered":"

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War risk insurance (WRI) is an additional surcharge imposed by international shipping companies on cargo bound for Nigeria. It comprises two key components: war risk liability, which covers people and goods aboard the vessel and is calculated based on the indemnity amount, and war risk hull, which covers the vessel itself and is determined by its value.<\/p>\n

This financial burden was initially introduced during the height of Niger Delta militancy and piracy. Although the Nigerian Bureau of Statistics does not have precise data on the total WRI payments made to international insurers, available figures indicate that Nigeria has paid over $1.5 billion in the past three years alone to Lloyd\u2019s of London, Protection and Indemnity (P&I) insurance, and other foreign insurance firms. The impact on Nigeria\u2019s economy is staggering for a Very Large Crude Carrier (VLCC) valued at $130 million, the WRI surcharge per voyage is approximately $445,000. For new container vessels valued at $150 million, the cost rises to $525,000 per voyage. Maersk, one of the world\u2019s largest shipping companies, has also introduced a transit disruption surcharge of up to $450 per container, while other shipping lines impose a war risk surcharge of $40\u2013$50 per 20-foot container.<\/p>\n

Recognizing the severe economic implications of this financial burden, the Nigerian Maritime Administration and Safety Agency (NIMASA) under the leadership of Dr. Dayo Mobereola has launched an aggressive campaign to eliminate war risk insurance on Nigeria-bound cargo. The NIMASA Act and the Merchant Shipping Act mandate the agency to promote shipping development, and removing the WRI premium has become a central focus of its maritime reforms. The security concerns that originally justified these premiums no longer exist. Nigeria has not recorded a single piracy incident in over three years, and in 2021, the International Maritime Bureau (IMB) officially removed Nigeria from its list of piracy-prone countries.<\/p>\n

Over the past five years, NIMASA, in collaboration with the Nigerian Navy, has led an unprecedented crackdown on piracy in the Gulf of Guinea, earning global recognition from the International Maritime Organization (IMO). Despite these achievements, international shipping companies have continued to impose war risk insurance premiums on Nigeria-bound cargoes. In 2023, the International Bargaining Forum (IBF) further validated Nigeria\u2019s progress by delisting the country from the list of high-risk maritime nations. With piracy no longer a concern, why has the international shipping community continued to impose these excessive premiums?<\/p>\n

NIGERIA\u2019S EFFORTS TO MITIGATE WRI PREMIUMS<\/p>\n

To address this issue, Nigeria through the Ministry of Marine and Blue Economy and the Ministry of Defense made significant investments in maritime security through initiatives like the Deep Blue Project, which has successfully eliminated piracy in the country\u2019s waters for over 30 consecutive months\u2014a record unmatched anywhere in the world. In addition, Nigeria collaborates closely with the IMO and other international bodies to combat maritime threats, further reducing its risk classification. IMO Secretary-General Arsenio Dominguez has publicly commended Nigeria\u2019s efforts in securing the Gulf of Guinea. Despite these improvements, shipowners and insurers have refused to acknowledge Nigeria\u2019s new security status, continuing to levy exorbitant premiums on vessels operating in the country.<\/p>\n

MOBEREOLA\u2019S INTERNATIONAL DIPLOMACY: BRINGING GLOBAL ATTENTION TO THE ISSUE<\/p>\n

Determined to break this cycle of financial exploitation, Dr. Mobereola under the directives of the Minister of Marine and Blue Economy, Adegboyega Oyetola took Nigeria\u2019s case to international stakeholders, urging them to support the removal of war risk insurance premiums. In a major diplomatic move, he engaged Chatham House, where he met with Dr. Alex Vines, Director of the Africa Programme, who agreed to escalate the matter to the United Nations.<\/p>\n

NIMASA has also engaged major global shipping organizations, including:<\/p>\n