NIMASA Pledges to Eliminate $1.5 Billion War Risk Premium on Nigerian Cargo

The Nigerian Maritime Administration and Safety Agency (NIMASA) has vowed to eliminate war risk insurance premiums on Nigerian-bound cargo, which have cost the country over $1.5 billion in the last three years.

NIMASA spokesperson, Osagie Edward, disclosed this in a statement on Thursday, emphasizing that the agency, under the leadership of Dr. Dayo Mobereola, is committed to improving the ease of doing business in Nigeria.

The agency stressed that the security concerns that initially justified these premiums no longer exist, making them unnecessary.

“For a very large crude carrier valued at $130 million, the war risk insurance surcharge per voyage is approximately $445,000. For new container vessels valued at $150 million, the cost rises to $525,000 per voyage,” Edward explained.

He noted that while the Nigerian Bureau of Statistics does not have exact data on total war risk insurance payments, available figures indicate that Nigeria has paid over $1.5 billion in the past three years to foreign insurers, including Lloyd’s of London and Protection and Indemnity Insurance.

Edward added that the NIMASA Act and the Merchant Shipping Act mandate the agency to promote shipping development, making the removal of war risk insurance premiums a key part of its maritime reforms.

“The security concerns that originally justified these premiums no longer exist,” he reiterated.