The Nigerian Shippers’ Council (NSC) has renewed calls for a drastic downward review—or outright removal—of the controversial war risk insurance premium surcharge imposed on vessels calling at Nigerian ports.
Executive Secretary of the Council, Dr. Pius Akutah, represented by the Director of Regulatory Services, Mrs. Margaret Ogbonna, made the appeal at the 3rd MARAN Annual Maritime Lecture (MAMAL 2025) in Lagos, themed “Addressing the Burden of War Risk Insurance on Nigeria’s Maritime Trade.”
Dr. Akutah stressed that despite significant progress in maritime security through the combined efforts of the Nigerian Maritime Administration and Safety Agency (NIMASA), the Nigerian Navy, and the Ministry of Marine and Blue Economy, Nigeria is still unfairly classified as a high-risk shipping zone. He noted that the continued imposition of the surcharge, despite years without piracy incidents, was unjustifiable and detrimental to trade competitiveness.
“Importers and exporters are forced to bear exorbitant costs that ultimately inflate the prices of goods, undermine economic competitiveness, and distort Nigeria’s maritime trade profile,” Akutah stated.
He highlighted Nigeria’s investment in maritime domain awareness, the deployment of the Deep Blue Project, the Suppression of Piracy and Other Maritime Offences (SPOMO) Act, and successful pirate convictions, which have all contributed to Nigeria being delisted from piracy-prone zones by the International Maritime Bureau (IMB).
Despite these achievements, Nigerian importers and exporters have reportedly paid over $5 billion in war risk insurance premiums in the last three years alone.
Meanwhile, Chairman of the occasion and veteran ship owner, Engr. Greg Ogbeifun, urged industry stakeholders to move beyond “mere talk” and establish platforms for practical solutions, while a former NIMASA Director General, Barr. Temisan Omatseye, faulted London’s Joint War Risk Committee for imposing higher charges on Nigerian waters compared to countries with worse insecurity records.
NIMASA’s Director-General, Dr. Dayo Mobereola, represented by Mr. Victor Illo, echoed the call for fairness, reaffirming that no piracy incident has been recorded in Nigeria’s waters in four years.
He stressed that the surcharge was eroding the gains of maritime reforms and stifling trade growth.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, represented by Dr. Bolaji Akinola, outlined a three-pronged strategy: sustained international engagement with insurers and underwriters, boosting indigenous shipping capacity through Cabotage Vessel Financing Fund (CVFF) disbursement, and reviving a national carrier under a private-sector-led model.
Stakeholders unanimously agreed that continued advocacy, collaboration, and practical policy reforms are key to ensuring that Nigeria’s improved maritime security is recognized globally and that shippers are freed from what they described as an “unjustifiable and punitive surcharge.”
