Akutah, Ogbeifun, Omatseye, Others Urge Removal Of War Risk Insurance Surcharge On Nigerian Bound Vessels

The Executive Secretary of the Nigerian Shipper’s Council, (NSC), Barr. Pius Akutah has assured Nigerian Shippers of continuous protection of their interests as the ports economic Regulator, as it calls for the downward review or outright removal of the current war risk insurance premium surcharge on vessels coming into the nation’s waters.

He made the promise in a message to the third MARAN Annual Maritime Lecture, MAMAL 2025 with the theme, “Addressing the Burden of War Risk Insurance on Nigeria’s Maritime Trade”, organised by the Maritime Reporters Association of Nigeria, MARAN in Lagos.

The Executive Secretary who was represented by the Director, Regulatory Affairs of the Council, Mrs. Margaret Ogbonna noted that in recent years, Nigeria through the concerted efforts by the Management of the Nigerian Maritime Administration and Safety Agency, NIMASA and the Nigerian Navy, as strategic partners in regional and international borders have recorded significant reductions in piracy and armed robbery attacks at sea, and as such, it is as a result of that efforts of the maritime industry, ably led by Minister of Marine and Blue Economy and NIMASA, to ensure that those things are out of the nation’s waters as it was giving the nation negative image all over the world.

According to him, it was as a result of the sustained investments in maritime domain awareness, improved inter – agency cooperation, deployment of the Deep Blue Project and Nigeria’s fair commitment to uphold the safety and security in the maritime environment.

Barr. Akutah noted that despite these giant strides, Nigeria remains unfairly classified as a high risk shipping zone, thereby attracting exorbitant war risk insurance premium surcharge.

He however, concluded that forcing the importers and exporters to pay so much money when so much money is needed by the people, in form of war risk insurance is not what can be ignored further noting that these costs have ultimately been transferred to the businessmen hence the reason behind inflating the prices of goods and undermining the competitiveness of maritime trade.

The Shippers’ Council Boss, in stating the position of the Council, explained that, as the Economy Regulator and a strong advocate for the protection of the shippers interest, the Council would consistently campaign for the review downwards or outright removal of the war risk insurance surcharge while also pledging the Council’s firm belief that the continued imposition of the surcharges which are no longer justifiable, given the improved security matrix and Nigeria’s demonstrable commitment to safe shipping.

He expressed optimism that based on a report reaching him, efforts are being made towards a robust engagement with the international Underwriter, Lloyds Marketers Association and local counterparts to advocate a data driven re – assessment of the risk status of the Nigerian waters.

He also restated the Council’s plan to engage with NIMASA and other agencies to compile and present an empirical evidence that really reflects the current security reality in the nation’s maritime domain.

Akutah affirmed that the Council fully supports the ongoing discussions at the ECOWAS, the Gulf of Guinea Maritime Collaboration Forum and at the International Maritime Organisation, IMO platforms, all aimed at securing the recognition of Nigeria’s achievements and the need for a fairer treatment by the global shipping and insurance community.

He further pledged moving forward to recognise the fact that addressing these challenges requires constant collaboration between the government, private sector, the media and the international partners hence applauding MARAN for the initiative.

He reiterated the fact that the Nigerian Shippers’ Council would not relent in its advocacy for the removal or downward review of the war risk insurance premium surcharge hence his promise to stand firmly with the Nigerian Shippers and all ports users in ensuring that the costs of doing business in the nation’s seaports reflect the reality not outdated perceptions while also reiterating the Council’s commitment towards building a cost efficient, secure and competitive maritime sector that supports the Nigeria economic growth and trade development.

He lauded MARAN for its unwavering dedication to the growth of the nation’s maritime industry.

The Chairman of the occasion, Engr. Greg Ogbeifun of the Starzs Investments Company Limited, cited his experience and contributions towards the growth of the sector, stressing that it was time that all participants in the Conference should establish a platform to participate in the carriage of the nation’s import and export goods rather than just merely talking about it.

Ogbeifun spoke about his retirement from active service in the sector but was excited by the establishment of the Ministry of Marine and Blue Economy hence coming back to continue his invaluable contributions.

He appealed that the event should not be tailored towards the usual talkshop but should be one with a measurable achievement in which by next time when MARAN would reconvene, there would be a statistic on the status of the war risk insurance issue on the nation’s maritime domain in 2026, at least by achieving either five or ten percent of the objectives, meaning that there will be collaboration with relevant organs to effectively see what needed to be done so as to achieve what.

Ogbeifun however solicited the untiring support of all the experts in the house to help MARAN to ensure that some measurable milestones are achieved via the very important event.

Speaking at the event, the former Director General of NIMASA, Captain Temisan Omatseye expressed  dissatisfaction that the Joint War Risk Committee in London is charging a zero point two five percent on every vessel that gets five degrees east of the Lagos harbour, which means that, anytime a vessel enters the area towards Delta, Port Harcourt or Bakassi, there is a fee being charged and that fee goes up to zero point six five percent whilst in Pakistan, where there is serious attacks, only zero point two five percent is charged.

The reason for this, according to him, was the fact that Nigeria had lost her eyes on the ball.

Captain Omatseye noted that for now, Nigeria is the centre of attractions to the world, with the Dangote Refinery producing thousands of barrels daily, the BUA Refinery, the one coming up in Ogun State plus other modular refineries which would produce for exports purposes, Nigeria is going to be the net exporter of petroleum products to the world hence the need to adequately find lasting solution to the lingering issues of war risk insurance premium on Nigerian importers and exporters.

In his goodwill message, the Director General of the Nigerian Maritime Administration and Safety Agency, NIMASA, Dr. Dayo Mobereola, represented by the Deputy Director, Reformed Coordinator, Deep Blue Economy, Mr. Victor Iloh commended MARAN for bringing the topical issue to the fore as it has become a problem, bothering on national security and trade policies.

Mobereola highlighted that Nigeria’s statutory geographical position in the Gulf of Guinea exposes her to maritime insecurity, driven by piracy, armed robbery attacks and geographical conflicts, leading to the imposition of war risk insurance premium.

He announced that significant progress has however been made in securing the nation’s maritime domain with no recorded incident in the last four years, which he said has been attributed to Nigeria’s integrated maritime architecture known as “The Deep Blue Project”, inaugurated in 2021.

He explained that the deployment of Maritime Assets on both land, sea, air and intelligence to secure the Nigerian waters also led to the enactment of the Suppression of Piracy and other related Maritime Offences SPOMO Act in 2019 and since 2020, adding that two major convictions of pirates have been secured by the Federal High Court under the registration.

According to the DG, NIMASA, Nigeria Maritime security safety led to her being delisted by the International Maritime Bureau from the list of piracy prone zones in 2021 and the commendations of the International Maritime Organisation, IMO, re – enforced the achievements.

He also stated that the IMB Forum removed Nigeria’s name as a high risk maritime zone in 2023 while constant collaboration with other maritime regional bodies had contributed significantly towards reducing piracy in the Gulf of Guinea waters.

Despite all these recorded milestones of improved maritime security, the impact of war risk premium on the Nigerian economy has continued to be enormous.

It sounded regrettable that Nigerian Importers and Exporters have paid over five billion dollars’ worth of war risk insurance premium over the last three years.

In addressing the problem, the Minister of the Marine and Blue Economy, Chief Adegboyega Oyetola and the Management of NIMASA had held Diplomatic and Stakeholders engagement with the Chattam House, BIMCO and other Developments Partners like the Danish Government and the IMO, towards discussing the strategic milestone recorded by Nigeria in driving maritime security and the need to leverage on those, to remove the war risk insurance premium on Nigerian bound cargoes.

The NIMASA boss added that while these engagements are still ongoing, the main focus is still on sustaining the recorded milestones.

However, he said, it must be underscored that the call for the removal of war risk insurance premium as a collective action, must not be left alone for the government thus advising all the relevant stakeholders to adhere to the best management practices for the maritime security 2025 BMBS, to enhance their ability to understand the security threats as that would protect Seafarers and promote safe and secure maritime operations.

Dr. Moberoela also expressed continuous engagements until the much desired results are achieved hence commending the erudite Maritime Journalists for such a great event and the esteemed participants in the discourse, which has since affected all because the goods end up in the individual homes on a very high cost.

Other goodwill messages came from the Secretary General of the Abuja Memorandum of Understanding, (MOU), Captain Sunday Umoren and the President of the African Shipowners Association, Captain Adebowale among others.

A question which came from the President of Africa Association of Professional Freight Forwarders and Logistics of Nigeria, APFFLON, Otunba Frank Ogunojemite, concerning the continuous charge of seven percent surcharge on cargos at the ports was posed to the Minister of Marine and Blue Economy, through his Representative, Dr. Bolaji Akinola.

In the meantime, the Minister, has proposed a three-way approach towards addressing the war risk insurance premium quagmire as expatiated by his representative, Dr. Bolaji Akinola at the Forum.

According to him, the Minister is engaging with the international shipping community, especially the international Insurers and Underwriters to drive home the narrative as there is no longer justification for war risk insurance surcharge.

The second approach, he explained, centers on government developing local capacity by ensuring that Nigerians begin to carry Nigerian cargos, be it imports or exports, hence plans to empower Nigerian Shipowners through single digit financing as the Minister has directed NIMASA’s Management to work at commencing the process of disbursements of the Cabotage Vessels Financing Fund, CVFF as a much needed respite to help Shipowners in acquiring vessels so as to begin to develop indigenous capacity and gradually Nigeria would begin to do away with the foreign vessels,to a large extent.

Also plans are on for the reviving of a National Carrier for the country, noting that the last time Nigeria had a National Carrier was in the days of the defunct Nigerian National Shipping Line, NNSL which collapsed in the 1990s but now, the federal government is bringing back the National Carrier.

He further clarified that the old Carrier was fully Government owned and that was the majority reason for its sudden collapse but the new one on the line now, would be championed by the Private Sector with Government backing by creating an enabling environment for it to thrive, with all necessary policy supports, thus expressing hope that this would go a long way in supporting and in building indigenous capacity for Nigerians

Dr. Akinola who attested to fact, that the Minister is very vast in knowledge of Insurance and Finance, is working with relevant Stakeholders to see how Nigeria can domicile insurance of Nigerian vessels in – country, as that would eventually put an end to the fraudulent war risk insurance premium on Nigerian bound vessels.

Earlier, the president of MARAN, Mr. Godfrey Bivbere charged the experts, to confront the burdensome issue of war risk insurance premium headlong as its cost implications are really undermining competitiveness, cost efficiency and are eroding investors’ confidence in the shipping sector.

The one-day conference featured a panel discussion on the way forward to reducing or removing the vexed issue of war risk insurance premium surcharge on Nigerian bound vessels and was well attended by the industry Experts and stakeholders.