Joyce Mmereole Okoli
The Nigerian Maritime Administration and Safety Agency (NIMASA) has expressed concerns over the continued imposition of war risk premiums on vessels entering Nigerian waters, attributing it to the activities of a cartel within the international insurance sector. Despite a significant reduction in piracy and improvements in maritime security, these premiums remain stubbornly high, further inflating the cost of trade for the country.
In an interactive session with maritime journalists on Monday at Eko Hotel and Suites in Victoria Island, Dr. Dayo Mobereola, the Director General of NIMASA, accused the unnamed cartel of artificially sustaining the high premiums to maximize profits, rather than basing them on the actual level of risk. He emphasized that this situation highlights the need for a coordinated global maritime response to address the issue.
He also said that these premiums, which significantly increase the cost of trade for Nigeria, are not reflective of the current security situation. Instead, they are maintained by a group of insurers benefiting from the status quo.
“In all honesty, Nigeria alone cannot do it. We need the international maritime organizations to be with us,” Dr. Mobereola stated, stressing that the war risk premium is not reflective of the current security realities but rather a tool exploited by insurers.
Dr. Mobereola lamented that despite Nigeria’s efforts to curb piracy, there has been no corresponding reduction in the premiums. He argued that even in a scenario where Nigeria achieves zero piracy and maintains security for a decade, the premiums would persist unless the international community forces the issue.
“These premiums, which significantly elevate freight costs for imports and exports, are being artificially sustained by insurers who are well aware of the improved security situation but prefer to maintain the high charges to maximize profits,” he said.
To combat this, NIMASA has engaged in discussions with key international partners and has brought the matter to the attention of the United Nations. Dr. Mobereola is optimistic that with UN support, Nigeria will be able to compel insurers to adjust the premiums in line with the actual risk level.
In addition to addressing the war risk premium, the NIMASA DG also discussed ongoing initiatives to tackle other critical issues in the maritime sector. These include the certification of competency (COCs) and the development of Officer of the Watch (OOW) programs, which are part of broader efforts to enhance the agency’s operational effectiveness.