The Executive Secretary of the Nigerian Shippers’ Council, Dr. Akutah Pius, has said that Nigeria’s classification as a war risk zone is unjustified and economically damaging.
Nigeria has not experienced terrorist attacks in its waters over the past three years, yet international shipping companies continue to impose war risk insurance premiums on Nigeria-bound cargo.
This misclassification imposes additional costs on the Nigerian economy and undermines port competitiveness. Akutah emphasised that advocacy efforts must extend beyond government action and involve industry stakeholders to bring solutions to the table.
The Nigerian Maritime Administration and Safety Agency has launched a campaign to eliminate war risk insurance premiums, citing significant investments in maritime security through initiatives like the Deep Blue Project, which has eliminated piracy in Nigerian waters for over 30 consecutive months.
The war risk premium surcharge per voyage for a Very Large Crude Carrier valued at $130 million is approximately $445,000.
For new container vessels valued at $150 million, the cost rises to $525,000 per voyage.
Maersk has introduced a transit disruption surcharge of up to $450 per container, while other shipping lines impose a war risk surcharge of $40 to $50 per 20-foot container.
The Nigerian Shippers’ Council and Maritime Reporters Association of Nigeria are joining forces to advocate for the removal of war risk insurance premiums, which could save Nigeria over $400 billion annually.
The MARAN Annual Maritime Lecture 2025 will focus on addressing this burden, highlighting the need for a collaborative approach to drive change.