Abuja — Despite significant improvements in maritime security, the Nigerian Maritime Administration and Safety Agency (NIMASA) has called for an end to war risk insurance premiums on cargo bound for Nigerian ports.
Key Takeaways:
- NIMASA urges the international community to reassess war risk insurance requirements.
- Nigeria has made substantial progress in reducing piracy in the Gulf of Guinea.
- Despite security gains, war risk premiums remain in place for Nigerian-bound cargoes.
- The agency highlights the economic burden of continued insurance requirements.
Despite Nigeria’s significant investments in maritime security and the near-elimination of piracy in the Gulf of Guinea, vessels bound for Nigerian ports continue to pay war risk insurance premiums. NIMASA Director-General Dayo Mobereola has called for the international community to recognize Nigeria’s security achievements and adjust insurance requirements accordingly.
Nigeria has made substantial progress in combating maritime insecurity through initiatives like the Deep Blue Project, commissioned in 2021. The project has significantly reduced piracy and kidnapping incidents in the Gulf of Guinea, with NIMASA reporting almost zero incidents in the past four years.
Nigeria’s Maritime Security Progress
NIMASA has collaborated with international organizations such as the Kofi Annan International Peacekeeping Training Centre to enhance maritime security capabilities. These efforts have led to notable improvements in regional naval safety.
The War Risk Insurance Issue
Despite these security gains, insurance premiums for war risk remain in place for vessels bound for Nigerian ports. NIMASA argues that these premiums no longer reflect the current security situation in Nigerian waters.
“Given the commitment NIMASA and the federal government have made in maritime security, there’s no reason for the current war risk premium paid by vessels coming to this region,” Mobereola stated.
International Collaboration and Knowledge Sharing
NIMASA has engaged with international partners, including the Danish Ministry of Foreign Affairs, to share knowledge and improve maritime security practices. The agency hopes these collaborations will improve recognition of Nigeria’s security achievements.
The Economic Impact of Continued Premiums
The continued requirement for war risk insurance adds to the cost of freight movement to Nigerian ports, potentially affecting trade and economic development. NIMASA has urged the international community to reassess these requirements in light of improved security conditions.
NIMASA continues to work with international partners to enhance maritime security and reduce unnecessary trade economic burdens. The agency hopes that demonstrating Nigeria’s security commitments will lead to revised insurance policies.
Nigeria’s progress in maritime security represents a significant achievement for regional safety. The call to end war risk insurance premiums reflects NIMASA’s confidence in the current security framework and its desire to reduce economic barriers to trade.
What’s your take? Should war risk insurance requirements be lifted for Nigerian-bound cargoes? Share your thoughts. When security investments meet economic practicality, everyone wins.
