With the enormous drain on the nation’s economy occasioned by the exorbitant and unjustifiable War Risk Insurance (WRI) premiums imposed by foreign insurance firms on Nigerian bound ships, the Maritime Reporters Association of Nigeria (MARAN) has said that its annual lecture; MAMAL 2025 is set to dissect the Impact of the Nigerian Maritime Administration and Safety Agency (NIMASA) aggressive campaign to stop the excessive surcharges.
NIMASA under its Director General, Dr. Dayo Mobereola, has stated its commitment to eliminating the WRI premium but this has stayed longer than expected.
This persistent drain of WRI on the Nigerian economy, is estimated at a staggering $500 million annually. It is an international affront that demands immediate and decisive action.
Despite the apex agency’s discussions with international partners and promises to take the matter to the United Nations, the financial hemorrhaging continues unabated.
Shipowners and importers, who bear the brunt of these unjustifiable premiums, are left wondering why a nation with demonstrably secure waters is still being treated as a war zone by the international shipping community.
Managing Director of Sea Transport Services Nigeria Limited and President of the Nigerian Chamber of Shipping, Alhaji Aminu Umar, rightly points out the need for NIMASA to engage the Joint War Committee, the body responsible for waiving or imposing WRI.
However, despite their efforts, the WRI remains firmly in place, raising concerns about the agency’s effectiveness in truly challenging this deeply entrenched international politics, as described by the President of the Nigeria Shipowners Association (NISA), Mr. Sola Adewunmi.
For years, the justification for WRI on Nigerian-bound cargo stemmed from the very real threat of piracy and Niger Delta militancy. However, as confirmed by the International Maritime Bureau (IMB) in 2021, Nigeria has been officially removed from the list of piracy-prone countries.
The International Bargaining Forum (IBF) further validated this progress in 2023, delisting Nigeria from high-risk maritime nations.
The Minister of Marine and Blue Economy, Adegboyola Oyetola, has also repeatedly affirmed that there has not been a single pirate incident in Nigerian waters for over three years, attributing this peace to the multi-billion naira Deep Blue Project spearheaded by NIMASA.
This, not withstanding, foreign insurance companies like Lloyd’s of London and various P&I clubs continue to levy these war risk surcharges.
This is not just an inconvenience; it is a monumental financial drain. In the past three years alone, Nigeria has coughed up an eye-watering $1.5 billion in WRI premiums. To put this into perspective, a Very Large Crude Carrier (VLCC) can incur a WRI surcharge of approximately $445,000 per voyage, while a new container vessel might face a hefty $525,000. Shipping giants like Maersk even tack on additional ‘transit disruption surcharges’ of up to $450 per container.
This translates directly to higher costs for Nigerian importers and exporters, ultimately passed on to the ordinary citizen, who pays inflated prices for goods.
Against this backdrop of frustration and economic detriment, MARAN is taking decisive action at its 3rd Annual Maritime Lecture (MAMAL) slated for August 28, 2025, at the Eko Hotel and Suites in Lagos.
With the theme ‘Addressing the Burden of War Risk Insurance on Nigerian Maritime Trade’, MAMAL 2025 aims to be more than just a discussion forum but a rallying cry to the federal government and all affected stakeholders to acknowledge the severe economic implications of these unjust charges.
MARAN President, Mr. Godfrey Bivbere, has unequivocally condemned WRI as an international fraud burdening the economy of Nigeria and other developing countries in the Gulf of Guinea.
According to him, MAMAL 2025 promises to dissect every facet of this issue, from the perceived threats to the profound implications of persistent Extra War Risk Insurance (EWRI). It will scrutinise the roles of classification societies like Lloyd’s of London and critically examine the contributions of core stakeholders, including NIMASA, the Nigerian Navy, and other maritime and security operators.
It is expected that MAMAL 2025 will draw over 500 key stakeholders, including maritime security experts, shipowners, terminal operators, international shipping lines, diplomats, insurers, regulators, and legal experts.
This broad engagement, driven by MARAN’s respected voice in the industry, offers a genuine opportunity for a united front against this exploitative practice.
While NIMASA talks to the UN, MARAN is bringing together the very people and organisations directly impacted, creating a platform for collective action and a more forceful demand for change.
The continued imposition of WRI on Nigerian-bound vessels is an affront to the nation’s efforts in securing its maritime domain and a significant impediment to its economic growth, hence the need to address this anomaly.