The Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, has said a cartel within the international insurance sector is responsible for over $400 million annual war risk surcharge imposed on vessels operating in Nigerian waters.
Daily Sun learnt that Nigeria paid a whopping N456 billion on the war risk premium between 2022 up to till date.
Speaking during an interactive session with maritime journalists on Monday, Mobereola said that despite significant strides in combating piracy, Nigeria continues to pay exorbitant fees which he says is hindering trade. He argued that insurers are deliberately maintaining high premiums, even though the security situation has improved, to maximize profits.
“One of the points I raised during my visit to Chatham House is how the war risk insurance placed on Nigerian bound cargoes can be reduced. It is a cartel that is behind the War Risk insurance premium. They are making so much money from it and will rather leave it the way it is than remove it.
“If Nigeria maintains zero piracy issues on her esters for the next 10 years, they won’t remove the war risk insurance because they are making so much money from it.
“In all honesty, Nigeria alone cannot do it. We need the international maritime organisations to be with us. Despite Nigeria’s concerted efforts to curb piracy and enhance maritime security, the war risk premium has not seen a corresponding decrease,” he said.
To address this issue, he said NIMASA is seeking international cooperation, including through the United Nations, to pressure insurers into reducing premiums to reflect the actual risk.
“We’ve engaged them, and we’re taking it to the United Nations. The UN is going to support us, and we will be able to take it to the insurers who will have no choice but to reduce it as well,” he said.
Mobereola also admitted that the initial plans for the N50 billion Modular Floating Dock were flawed but assured the public that the agency is working on a revised plan to optimize the facility’s benefits for the economy, seafarers, and NIMASA itself.
He said: “The initial plan for the Floating Dock was not the right one. We are going to put the Modular Floating Dock to a very good use so that once it is in use, it will be beneficial to the economy, seafarers and NIMASA itself. We need to place the Modular Floating Dock in an appropriate place. It is just a matter of time, we will soon get that done.”
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