Stakeholders express displeasure over War Risk Insurance premiums on Nigerian-bound vessels

A former Director General of Nigerian Maritime Administration and Safety Agency (NIMASA), Captain Temisan Omatseye, has expressed dissatisfaction with the collection of War Risk Insurance premiums by the Joint War Risk Committee in London on every vessel coming to Nigeria.

Omatseye said while Joint War Risk Committee charges a zero point two five percent on every vessel that gets five degrees east of the Lagos harbour, towards Delta, Port Harcourt or Bakassi, where there is less crime, the Committee, in Pakistan, where there are serious attacks, charges vessels only zero point two five percent.

The former NIMASA Director General expressed this dissatisfaction at the third edition of the Maritime Reporters Association of Nigeria Annual Lecture held in Lagos last week.

The reason for this, according to him, was the fact that Nigeria had lost her eyes on the ball.

Barrister Omatseye noted that for now, Nigeria is the centre of attractions to the world, with the Dangote Refinery producing thousands barrels daily, the BUA Refinery, plus other modular refineries which would produce for exports purposes. Nigeria is going to be the next Exporter of Petroleum Products to the world hence the need to adequately find lasting solution to the lingering issues of war risk insurance premium on Nigerian importers and exporters.

In his goodwill message, the Director General of NIMASA, Dr Dayo Mobereola, represented by the Deputy Director, Reformed Coordinator Deep Blue Economy, Mr Victor Iloh, commended MARAN, for bringing the topical issue to the fore, as it has become a problem, bothering on national security and trade policies.

He explained that Nigeria’s statutory geographical position in the Gulf of Guinea, exposes her to maritime insecurity, driven by piracy, armed robbery attacks and geographical conflicts, leading to the imposition of war risk insurance premium.

Significant progress has however been made in securing the nation’s maritime domain with no recorded incident in the last four years, that he noted, has been attributed to Nigeria’s integrated maritime architecture, known as “The Deep Blue Project”, which was inaugurated in 2021 and the deployment of Maritime Assets on both land, sea, air and intelligence, to secure the Nigerian waters, which also led to the enactment of the Suppression of Piracy and other related Maritime Offences “SPROMO Act” in 2019 and since 2020, he explained that two major convictions of Pirates, have been secured by the Federal High Court, under the registration.

According to the DG, NIMASA, Nigeria Maritime security safety led to her being de -l listed by the International Maritime Bureau, from the list of piracy prone zones in 2021 and the commendations of the International Maritime Organisation, IMO, re – enforced the achievements.

He also stated that the IMB Forum removed Nigeria’s name as a high risk maritime zone in 2023 while constant collaboration with other maritime regional bodies, had contributed  significantly towards reducing piracy in the Gulf of Guinea waters.

Despite all these recorded milestones of improved maritime security, the impact of war risk premium on the Nigerian economy, has continued to be enormous.

It sounded regrettable that Nigerian importers and exporters have paid over five billion dollars worth of war risk insurance premium over the last three years.

In addressing the problem, the Minister of the Marine and Blue Economy, Chief Adegboyega Oyetola and the Management of NIMASA had held Diplomatic and Stakeholders engagement with the Chattam House, FIMCO and other Developments Partners like the Danish Government and the IMO, towards discussing the strategic milestone recorded by Nigeria in driving maritime security and the need to leverage on those, to remove the war risk insurance premium on Nigerian bound cargoes.

The NIMASA Boss noted that, while these engagements are still ongoing, the main focus is still on sustaining the recorded milestones.

Moberoela, however, expressed continuous engagements until the much desired results are achieved hence commending the  erudite Maritime Journalists for such a great event and the esteemed participants in the discourse, which has since affected all, because the goods end up in the individual homes on a very high costs.