NIMASA’s Bold Crusade to Eliminate War Risk Insurance Could Save Nigeria Over $400 Billion Annually

The Nigerian Maritime Administration and Safety Agency (NIMASA) has intensified its campaign to end the unfair imposition of war risk insurance (WRI) premiums on Nigeria-bound cargo, a move that could save the nation over $400 billion annually.

War risk insurance is an additional surcharge levied by international shipping firms due to perceived security threats in Nigeria’s waters. These premiums include war risk liability, covering cargo and passengers, and war risk hull, protecting vessels. Initially imposed during the height of Niger Delta militancy and piracy, WRI has persisted despite significant improvements in Nigeria’s maritime security.

Recent data indicate that Nigeria has paid over $1.5 billion in WRI surcharges in just three years, primarily to international insurers such as Lloyd’s of London and the Protection and Indemnity (P&I) insurance market. For a Very Large Crude Carrier (VLCC) valued at $130 million, WRI premiums per voyage amount to approximately $445,000, while for a $150 million container vessel, the cost rises to $525,000. Additionally, global shipping giants such as Maersk have imposed extra transit disruption surcharges, further inflating costs.

NIMASA’s Fight to Remove Unjustified WRI Premiums

Under the leadership of Dr. Dayo Mobereola, NIMASA has prioritized the removal of WRI surcharges as a key component of its maritime sector reforms. The agency argues that Nigeria no longer meets the risk profile for these premiums, given that the country has not recorded a single piracy incident in over three years. In 2021, the International Maritime Bureau (IMB) officially delisted Nigeria from its list of piracy-prone nations, and in 2023, the International Bargaining Forum (IBF) removed the country from the high-risk maritime zones.

Nigeria has also made unprecedented investments in maritime security through initiatives such as the Deep Blue Project, which has successfully kept the country’s waters free from piracy for over 30 consecutive months. The Nigerian Navy and other security agencies have worked closely with global stakeholders to maintain safe shipping lanes, earning commendations from the International Maritime Organization (IMO).

Despite these efforts, international insurers and shipping companies continue to impose war risk insurance premiums, a situation that NIMASA describes as an unfair financial burden on Nigeria’s economy.

Mobereola’s Global Advocacy for WRI Removal

Determined to break the cycle of financial exploitation, Dr. Mobereola, under the directives of the Minister of Marine and Blue Economy, Adegboyega Oyetola, has taken Nigeria’s case to global stakeholders. During high-level engagements at Chatham House, he met with Dr. Alex Vines, Director of the Africa Programme, who agreed to escalate the matter to the United Nations.

NIMASA has also engaged major global maritime organizations, including:

• BIMCO (Baltic and International Maritime Council), the world’s largest shipping association.
• The International Chamber of Shipping (ICS).
• INTERCARGO (International Association of Dry Cargo Shipowners).
• INTERTANKO (International Association of Independent Tanker Owners).

During these discussions, Dr. Mobereola emphasized that Nigeria has spent billions on securing its maritime domain, yet remains unfairly penalized. He urged the global shipping community to recognize the country’s improved security status and eliminate WRI premiums.

Key industry figures, such as Stinne Taiger Ivø, Deputy Secretary General of BIMCO, have acknowledged Nigeria’s progress, suggesting that shipowners should push for lower premiums. Likewise, Zhou Xianyong of INTERCARGO has pledged support for Nigeria’s campaign to be removed from war risk insurance premium zones.

Strategic Diplomacy with Denmark and Global Players

As part of its diplomatic push, NIMASA recently met with a Danish delegation led by Kristin Skov-Spilling from the Danish Ministry of Foreign Affairs, urging Denmark to advocate for reduced war risk insurance premiums. Given that Maersk—a Danish shipping giant—contributes over 15% of Denmark’s GDP, pressure from the Danish government could influence global shipping trends.

The Call for Global Action

Dr. Mobereola and his team at NIMASA have successfully drawn international attention to Nigeria’s unfair war risk insurance burden. Now, all stakeholders—government, industry, and global maritime bodies—must rally behind efforts to eliminate these unjustified premiums.

With piracy eradicated and Nigeria fulfilling its security commitments, there is no justification for the continued imposition of WRI surcharges. The time for change is now, and NIMASA is determined to sustain the momentum until Nigeria is free from this economic burden.