NIMASA’s War on War Risk Premiums: Campaign’s Impact Questioned Amidst Staggering Costs

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The Nigerian Maritime Administration and Safety Agency (NIMASA) has expressed commitment to eliminating exorbitant War Risk Insurance (WRI) premiums imposed on Nigerian-bound ships.

However, the actual impact of their aggressive campaign remains uncertain amidst continued financial strain on the Nigerian economy.

Key Issues with War Risk Premiums:

Financial Drain: Estimated at *$500 million annually*, with $1.5 billion paid in WRI premiums in the past three years.

No Piracy Incidents: Nigeria removed from piracy-prone list; Minister of Marine and Blue Economy confirms no pirate incidents in over three years.

Continued Levies:  Foreign insurance companies like Lloyd’s of London still impose WRI surcharges.

Efforts and Challenges:

NIMASA’s Campaign: Discussions with international partners; plans to involve the United Nations.

MARAN’s Initiative: Maritime Reporters Association of Nigeria to host MAMAL 2025 (August 28, 2025) to expose the issue and champion Nigerian stakeholders’ cause.

Impact on Economy:

Higher costs for importers/exporters passed to consumers.

WRI surcharges: VLCC ($445,000/voyage), container vessels ($525,000/voyage).

Path Forward:

MAMAL 2025 aims to rally stakeholders against exploitative practices. With over 500 attendees expected, the event could drive collective action for change.

The situation raises questions about NIMASA’s effectiveness in challenging entrenched international practices amidst significant economic implications for Nigeria.

By Esther Komolafe

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