Shippers’ Council seeks end to war risk insurance on Nigerian vessels

By Joy Enamuna

The Nigerian Shippers’ Council has renewed calls for a drastic review or outright removal of war risk insurance surcharges imposed on vessels calling at Nigerian ports, describing the levy as unjustifiable and harmful to the nation’s maritime trade.

Speaking at the 2025 Annual Maritime Lecture of the Maritime Reporters Association of Nigeria (MARAN) in Lagos, the Council’s Executive Secretary, Dr. Pius Akutah, said the surcharge was no longer defensible given the significant strides Nigeria had made in securing its waterways.

Akutah, represented by the Council’s Director of Regulatory Affairs, Mrs. Margaret Ogbonna, argued that continuous classification of Nigeria as a high-risk shipping zone contradicted the improved security outlook achieved through the Deep Blue Project and other naval interventions.

He lamented that despite sustained investments in maritime domain awareness, inter-agency collaboration, and international partnerships, importers and exporters are still forced to pay exorbitant surcharges.

According to him, the costs ultimately translate into higher prices for goods, weakening the competitiveness of Nigeria’s maritime trade.

“Forcing importers and exporters to pay so much in war risk insurance is not what can be ignored further,” Akutah stressed, pledging that the Council would continue to champion shippers’ interests until the surcharges were removed.

In his welcome address, MARAN President, Mr. Ewrhujakpor Godfrey Bivbere, said the forum was designed to confront the challenge head-on.

“As Nigeria strives to reposition itself as a hub of maritime excellence in West Africa, the persistent imposition of war risk premiums on vessels calling at our ports remains a significant obstacle to competitiveness, cost-efficiency, and investor confidence,” he noted, adding that the premiums affect not only shipowners but also the average Nigerian consumer.

Other stakeholders, including the former Director-General of NIMASA, Captain Temisan Omatseye, and Engr. Greg Ogbeifun of Starzs Investments, also raised concerns over the premiums. Omatseye particularly faulted the Joint War Risk Committee in London for charging Nigerian-bound vessels higher than those sailing into conflict-prone waters like Pakistan.

He warned that with Nigeria emerging as a major petroleum products exporter through the Dangote and BUA refineries, the issue could further complicate trade flows.

Representatives of the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Ministry of Marine and Blue Economy assured participants that ongoing diplomatic engagements with international underwriters and maritime bodies would be sustained until Nigeria is delisted from the war risk zone classification.