L-R: Executive Director, Jubril Abba; DG NIMASA, Dr Dayo Mobereola

NIMASA Advocates for Removal of War Risk Premium on Nigerian Imports, Rules Out National Carrier

NIMASA Pushes for Removal of War Risk Premium on Nigerian Imports, Forecloses Government-Owned National Carrier

The Nigerian Maritime Administration and Safety Agency (NIMASA) is leading a global push to eliminate the War Risk Insurance Premium imposed on ships docking at Nigerian seaports. The agency, under the leadership of Dr. Dayo Mobereola, is rallying support from multilateral organizations, including the United Nations, in efforts to address the controversial surcharge that has significantly increased shipping costs for Nigeria-bound vessels.

The War Risk Premium, initially implemented due to the spike in piracy attacks in the Gulf of Guinea, has continued to drive up import costs despite a marked decline in maritime security threats. Piracy in the region has decreased by over 95% following the implementation of Nigeria’s Deep Blue Project, a comprehensive initiative designed to enhance waterway security.

Nigerian shipping experts have long advocated for the removal of the premium, citing the reduced risks and the negative impact on the country’s economy. In response, Dr. Mobereola stated that NIMASA has begun consultations with key global stakeholders, including the UN and the UK government, to push for the matter to be discussed at the UN Security Council.

“There is a strong cartel benefiting from the War Risk Premium, and they will not easily relinquish their hold. Even with zero piracy for a decade, we cannot dismantle this alone. We are working with international partners, which is why we have taken this fight to the UN,” Mobereola said during a recent press conference in Lagos.

The Director General’s efforts include engaging in discussions with officials in the United Kingdom to enlist their support, emphasizing the urgency of removing the premium, which continues to unjustifiably inflate shipping costs for Nigerian imports.

In a related development, NIMASA has foreclosed the prospect of establishing a government-owned national shipping carrier, effectively ruling out a replacement for the defunct Nigerian National Shipping Line (NNSL). Instead, the agency is focusing on creating a conducive environment for private sector-led investments in the shipping industry. NIMASA is encouraging indigenous shipowners to acquire vessels that can be designated as National Carriers and is working to modernize the country’s ship registry to attract foreign operators.

As Nigeria seeks to bolster its maritime infrastructure and reduce operational costs for importers, NIMASA’s proactive engagement with global shipping stakeholders may prove pivotal in securing the country’s economic interests on the international stage.