FG seeks removal of war risk insurance on ships

Federal Government (FG) has called for the immediate removal of war risk insurance premiums on ships coming to Nigeria. Minister of Marine and Blue Economy Adegboyega Oyetola made the appeal on Wednesday in Lagos at the 3rd Annual Maritime Lecture of the Maritime Reporters Association of Nigeria (MARAN). Oyetola, represented by his Special Adviser on Media and Communications, Dr Bolaji Akinola, said that the charges, imposed when the country’s waters were unsafe, were no longer justified and were hurting trade. The minster said that Nigeria had earned the right to be delisted from global maritime high-risk classifications. He added the country had made significant reforms and security strides, particularly with the implementation of the Deep Blue Project, which had recorded zero piracy incidents in Nigerian waters in the last four years.
“These premiums are based on outdated perceptions. Nigeria has achieved enhanced maritime security, backed by data-driven evidence. Yet, ship owners continue to pay a price that undermines trade and investment,” Oyetola said. The minister explained that the Deep Blue Project, implemented by the Nigerian Maritime Administration and Safety Agency (NIMASA) in partnership with the Navy, had delivered real-time surveillance and interdiction through integrated air, land, and sea assets. This, he noted, earned Nigeria global commendations, including removal from the International Bargaining Forum’s high-risk list. Oyetola said since the ministry was established in 2023, there had been some key achievements which include resolution of the decade-long Apapa gridlock.
Others are the launch of Africa’s first National Policy on Marine and Blue Economy, approval of port modernisation projects in Lagos, Tin Can Island, and Eastern Ports, as well a revenue generation by agencies under the ministry doubling from N700.79 billion in 2023 to N1.39 trillion in 2024, the highest in Nigeria’s history.
It also includes unlocking of the Cabotage Vessel Financing Fund to support indigenous ship owners, establishment of a technical committee for a private-sector-led national shipping line and reforms to boost aquaculture and inland waterway safety. Oyetola lamented that Nigeria still bears the burden of war risk premiums, which he said had cost the country about $1.5 billion in recent years. He said that the ministry was engaging international bodies such as BIMCO, the International Chamber of Shipping, and Lloyd’s of London to present verifiable data and push for policy changes. According to him, plans are also underway to strengthen local marine insurance, deepen regional cooperation, and sustain robust security reporting. Oyetola expressed optimism about the future of Nigeria’s blue economy, pledging continued efforts to modernise ports, empower local operators, and make the sector a key driver of jobs, growth, and sustainability.