FG Engages Global Insurers to Halt $1.5bn War Risk Charges
The Federal Government has commenced discussions with international insurers, including the International Chamber of Shipping and Lloyd’s of London, among others, to prove that Nigeria has secured its waters, in a bid to stop the huge loss of $1.5bn paid as war risk insurance premiums for Nigerian bond cargoes.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, stated this on Wednesday in Lagos during the 3rd Annual Maritime Lecture MAMAL 2025, organised by the Maritime Reporters Association of Nigeria.
The event was themed, “Addressing the burden of war risk insurance on Nigeria’s maritime trade”. According to a recent report, the Nigerian Maritime Administration and Safety Agency announced that in the last three years, Nigerian importers have paid over $1.5bn to Lloyd’s of London, Protection and Indemnity Insurance, and other foreign insurance firms in war risk insurance premiums despite the reduction in piracy attacks in the Gulf of Guinea.
Reacting to this, Oyetola, represented at the event by his media aide, Dr Bolaji Akinola, said the government would continue strengthening the nation’s maritime security architecture and share regular data-driven security reports with international underwriters.
He added that the government would continue to deepen regional collaboration on the architecture for maritime security and develop local maritime insurers’ capacity to retain value within our economy.
“We must persist in making a robust and compelling case for the removal of this sore charge. My ministry, working with NIMASA, is actively engaging with BIMCO, the International Chamber of Shipping, and Lloyd’s of London, armed with empirical data that proves Nigeria has secured its waters.
“At the same time, we will continue to strengthen our maritime security architecture, share regular data-driven security reports with international underwriters, deepen regional collaboration on the architecture for maritime security, and develop local maritime insurers’ capacity to retain value within our economy,” Oyetola said.
According to Oyetola, over the past four years, Nigeria has recorded zero piracy incidents. He stressed that the unprecedented milestone is the result of massive Federal Government investments, notably, the Deep Blue Project funded by the NIMASA, working in close partnership with the Nigerian Navy and other security agencies.
“The Deep Blue Project integrates air, land, and sea assets in real-time surveillance and interdiction,” he said.
Also speaking, the Executive Secretary of the Nigerian Shippers’ Council, Dr Pius Akutah, said that the council, as the port economic regulator and a strong advocate for the protection of shippers’ interests, has consistently called for a review and removal of this war risk insurance surcharge.
Akutah, who was represented at the event by the Director, Regulatory Services at the NSC, Mrs Magret Ogbonna, stated that based on the report, “the NSC is working towards engaging with international underwriters, Lloyd’s Market Association, and P&I clubs, to advocate for a data-driven reassessment of the risk status of Nigerian waters.”
“We will also engage with NIMASA and other agencies to compile and present empirical evidence that clearly reflects the current security realities in our maritime domain,” he said.
Earlier, the President of MARAN, Mr Godfrey Bivbere, stated that 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-efficient and investor confidence.”
“It’s a burden that affects not just shipowners and terminal operators but also the entire value chain from importers and exporters to the average Nigerian consumer,” Bivbere said.