Why War Risk Insurance Premium on Nigerian Cargoes Will Be Removed Soon

R-L: Director General, Nigerian Maritime Administration and Safety Agency (NIMASA) Dr. Bashir Jamoh; Honourable Minister of State for Transportation, Senator Gbemisola Ruquyyah Saraki and Chairman, House Committee on Maritime Safety, Education and Administration, Hon. Lynda Ikpeazu during a tour of deep blue assets at the Nigerian Maritime Resource Development Centre (NMRDC), Kirikiri Lagos.

 The Federal Government has adduced reasons as to why the  clamor for the removal of war risk insurance premium on Nigerian bound cargoes will soon yield positive results.

The Minister of State for Transportation, Senator Gbemisola Ruqayyah Saraki and the Director General , Nigerian Maritime Administration and Safety Agency(NIMASA) gave the explanations when the Minister tour the  facilities and assets of the Nigerian Maritime Administration and Safety Agency (NIMASA) in Lagos .

 Assets inspected included the NIMASA Command, Control and Computer Centre (C4i), the NIMASA Modular Floating Dockyard, the NIMASA E-library and Vessels belonging to the Agency undergoing dry docking at the Naval Dockyard Victoria Island.

The Minister  said that the Federal Government was optimistic that the war risk premium will soon be removed for the fact that Nigeria has witnessed piracy free waters or zero attacks  since the beginning of  2022, particularly in the last five months , due to the relentless efforts of the NIMASA in the anti- piracy war .

According to her,” for over 28 years, we have been in the press for the wrong reasons, over the piracy issues at the Gulf of Guinea (GoG). We were there when Mr. President commissioned the DEEP BLUE PROJECT last year and within that short frame of time, we have broken the jinx, and for the last five months zero attacks, so I think that says it all for my assessment of NIMASA”.

 Senator Saraki noted that  the need to sustain the momentum of the anti piracy war  to ensure that  Nigeria remains attractive to investors  and the the steps NIMASA is taking to address the issue of War Risk Insurance premium on Nigerian Bound Cargoes will also facilitate the removal of the liability.

“The most important thing now is that we don’t rest on our oars. The Free Trade Agreement and how it affects Nigeria is our focus. We hope to create an enabling environment to be very attractive and highly competitive when compared to neighboring countries and collaboration amongst all maritime Agencies of Government in terms of information gathering and sharing is key in achieving this”. She said.

On his part, the Director General of NIMASA, Dr Bashir Jamoh said that it is  hoped  that by September this year, the issue of War Risk Insurance will be addressed, when the Lloyd’s of London, coordinators of insurance surcharges on Nigerian bound cargoes, meet to deliberate on Nigeria’s  position paper which highlights the short, medium, and long term plans to sustain the achievements in its  against piracy .

He  disclosed that the focus of the Agency is sustaining the achievements in the anti-piracy war  , adding that the plans are in three categories of short medium and long term, while they are expected to facilitate the removal of the war risk insurance premium.

 Jamoh said ‘’Our focus now is to sustain the tempo. We are very optimistic that the clamor for the removal of war risk insurance premium on Nigerian bound cargoes will soon yield positive results. The international community desires sustainability of the war on piracy and maritime crimes in Nigeria. The good thing is that they are part and parcel of our processes and procedures’’.

The NIMASA DG  stated that there is the Nigeria Join Industry Working Group, where all stakeholders including  the INTERTANKO, the largest owners of tankers in the world, the INTERCARGO, the largest owners of cargoes in the world, and the major oil marketing companies meet regularly to  discuss developments in the Nigerian Maritime industry.

 He said NIMASA on behalf of the Federal Government  has  also strengthened its  collaboration with the Nigerian Navy, while the  SHADE Gulf of Guinea, is another platform where inter regional organizations,  such as the ICC and the European Union foster collaboration to secure the Gulf of Guinea.

Jamoh disclosed  that though Nigeria was removed from the red list of piracy nations on 3rd of March this year, it is natural that the international community will desire sustainability of the measures thathave made this possible , pointing out that Nigeria has been working to sustain the tempo.