David
The Nigerian Maritime Administration and Safety Agency (NIMASA) has been waging a campaign against the exorbitant and unjustifiable War Risk Insurance (WRI) premiums imposed by foreign insurance firms on Nigerian-bound ships. Under the leadership of its Director General, Dr. Dayo Mobereola, NIMASA has stated its commitment to eliminating this practice, which is estimated to drain the Nigerian economy of a staggering $500 million annually.
The WRI premiums were initially introduced due to the high incidence of piracy and militancy in the Niger Delta region. However, with improved security and no recorded piracy incidents in over three years, Nigeria’s maritime industry stakeholders argue that these premiums are no longer justified. Despite this, international shipping companies continue to impose WRI premiums on Nigeria-bound cargoes, citing concerns over potential risks.
NIMASA has engaged major global shipping organizations, including BIMCO, ICS, INTERCARGO, and INTERTANKO, to recognize Nigeria’s improved security status and remove WRI premiums. The agency has also met with international partners, such as Chatham House and the Danish Ministry of Foreign Affairs, to escalate the issue and garner support.
NIMASA has collaborated with the Nigerian Navy to eliminate piracy in Nigerian waters, earning global recognition from the International Maritime Organization (IMO). This collaboration has been instrumental in improving security in the region and reducing the risk of piracy.
Despite NIMASA’s efforts, the actual impact of their campaign remains questionable. International shipping companies continue to impose WRI premiums on Nigeria-bound cargoes, and the estimated $500 million annual drain on the economy persists. Critics argue that NIMASA needs to engage more effectively with the Joint War Committee, the body responsible for waiving or imposing WRI.
The Maritime Reporters Association of Nigeria (MARAN) is set to host its 3rd Annual Maritime Lecture (MAMAL 2025) to discuss the issue and potential solutions. The event will bring together key stakeholders and industry experts to shed light on the bitter truth behind NIMASA’s campaign and champion the cause of Nigerian stakeholders.
The battle against WRI premiums requires collaboration and coordination among all stakeholders. NIMASA’s efforts to engage with international partners and industry stakeholders are crucial to finding a solution to this issue. The upcoming MAMAL 2025 lecture is an opportunity for stakeholders to come together and find a way forward.
The estimated annual loss of $500 million due to WRI premiums is a significant drain on the Nigerian economy. The elimination of these premiums could mark a new era for Nigeria’s maritime industry, with potential for significant growth and development.
