The Nigerian Shippers’ Council(NSC) has decided to meet with international insurance underwriters over the continued imposition of War Risk Insurance premium on Nigeria- bound cargo.
The decision of the Council followed the continued collection of the subcharge by the foreign shipping companies from Nigerian Shippers despite improved security on Nigerian waters and the Gulf of Guinea.
Making this disclosure on Wednesday, 2025 was the Executive Secretary of the NSC, Barr. Pius Akutah while delivering a goodwill message at the third edition of the MARAN Maritime Lectures(MAMAL) with the theme “Burden of War Risk Insurance Surcharge on Nigerian Maritime Trade – A Case for Review”.
Barrister Akutah, who spoke through
Mrs Margaret Ogbonna, Director Regulatory Services, lamented the loss of N1. 5 billion paid by Nigerian Shippers in the last three years to the foreign shipping companies as war insurance premium.
According to him, these payments were unfair and unjustified given the zero piracy incident recorded in the Gulf of Guinea in the last three years.
Consequently, the NSC boss said the agency will meet with international insurance underwriters in order to reassess the situation.
“The Nigerian Shippers’ 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.
” It is our firm belief that the continued imposition of these premiums is no longer justifiable, given the improved security metrics and Nigeria’s demonstrable commitment to safe shipping.
“Base on the report we are getting, 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.
“Furthermore, the Council supports ongoing discussions at ECOWAS, the Gulf of Guinea Maritime Collaboration Forum (GOGMCF/SHADE), and IMO platforms, aimed at securing recognition of Nigeria’s security achievements and the need for fairer treatment by the global shipping and insurance communities.
“We recognize that addressing this challenge requires continued collaboration between government, the private sector, the media, and international partners
“Available figures indicate that Nigeria has paid over $1.5 billion in the past three years alone to Lloyd’s of London, Protection and Indemnity (P&I) insurance, and other foreign insurance firms” Akutah lamented.
He disclosed that these cost will ultimately be transferred to Nigerian importers, exporters, and consumers, thus inflating the price of goods and undermining the competitiveness of trade.
