NIMASA’s Battle Against War Risk Premiums: Real Effort or Empty Rhetoric?

Despite repeated assurances from the Nigerian Maritime Administration and Safety Agency (NIMASA) under the leadership of Director General Dr. Dayo Mobereola, the agency’s campaign to eliminate the high War Risk Insurance (WRI) premiums on Nigeria-bound vessels continues to raise questions about its effectiveness.

These controversial surcharges, imposed by foreign insurers, cost the Nigerian economy an estimated $500 million annually.

Industry experts argue that the charges are not only unjustified but also a lingering insult, especially as Nigeria has made significant progress in maritime security.

While NIMASA claims to be lobbying international partners and even considering taking the matter before the United Nations, the financial losses remain. Meanwhile, shipowners and importers continue to shoulder the burden of premiums associated with a “war risk” designation that many say is outdated and inaccurate.

In response to these ongoing challenges, the Maritime Reporters Association of Nigeria (MARAN) is gearing up to confront the issue head-on through its upcoming third annual Maritime Lecture (MAMAL 2025), scheduled for August 28 at the Eko Hotel and Suites in Lagos.

Under the theme “Addressing the Burden of War Risk Insurance on Nigerian Maritime Trade,” the event aims to spotlight the economic and political implications of WRI on the nation’s shipping sector and call for a unified pushback against the continued imposition of the charges.

Industry leaders like Alhaji Aminu Umar, Managing Director of Sea Transport Services and President of the Nigerian Chamber of Shipping, have stressed the importance of engaging directly with the Joint War Committee—the body responsible for the WRI designation. However, despite various efforts, the premium remains in force, prompting criticism over NIMASA’s ability to influence the global narrative.

According to Nigeria Shipowners Association (NISA) President, Mr. Sola Adewunmi, the matter extends beyond mere advocacy—it involves entrenched international interests that must be strategically challenged.

Historically, Nigeria’s classification as a high-risk area stemmed from piracy and unrest in the Niger Delta. But that rationale has since changed. The International Maritime Bureau (IMB) officially removed Nigeria from its list of piracy hotspots in 2021. In 2023, the International Bargaining Forum (IBF) followed suit, no longer recognizing Nigeria as a high-risk maritime zone.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, has consistently noted that there have been no pirate attacks in Nigerian waters for over three years. He credits this security milestone to NIMASA’s Deep Blue Project, which has significantly improved safety in the Gulf of Guinea.

Yet, leading foreign insurers, including Lloyd’s of London and multiple Protection & Indemnity (P&I) clubs, continue to enforce war risk charges on vessels entering Nigerian waters. The financial burden is immense—Nigeria has paid approximately $1.5 billion in WRI premiums over the past three years.

For context, a single voyage by a Very Large Crude Carrier (VLCC) can attract a surcharge of around $445,000, while a newer container ship could face WRI costs exceeding $500,000. Shipping companies such as Maersk have also added disruption surcharges of up to $450 per container, translating to higher prices for importers and consumers alike.

Amid growing frustration, MARAN is stepping forward with MAMAL 2025—a gathering that aims to rally key players in the maritime industry and push for a comprehensive solution. MARAN President, Mr. Godfrey Bivbere, has denounced WRI as an unjust financial burden on Nigeria and other Gulf of Guinea countries, calling it a “global economic injustice.”

The event will bring together more than 500 stakeholders, including maritime security experts, terminal operators, shipping firms, diplomats, insurance firms, regulators, naval officers, and legal professionals. Discussions will cover the real threats, the financial consequences of continued WRI imposition, and the roles of global classification bodies like Lloyd’s.

While NIMASA continues diplomatic engagements, MARAN is assembling those directly affected to demand meaningful change. MAMAL 2025 is expected to be a turning point in the long-standing struggle against excessive WRI premiums.

As Nigeria continues to improve maritime security, the persistence of these charges undermines national efforts and economic growth. MARAN’s bold initiative offers a much-needed platform for collaboration, awareness, and action toward ending what many now see as an outdated and unfair policy.