The Nigeria Maritime Administration and Safety Agency (NIMASA) is pushing for an end to the existing war risk insurance policy for all Nigerian-bound cargoes.
The agency said this is because of the falling piracy incidence in the Nigerian waters and the Gulf of Guinea since February when the Integrated National Security and Waterways Protection Infrastructure also called Deep Blue Project, was deployed.
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The Director General of NIMASA, Dr Bashir Jamoh, said there was no need for such insurance as maritime insecurity has dropped.
The policy covers damage due to acts of war, including invasion, insurrection, rebellion and hijacking, among others, used in the shipping and aviation industries.
Speaking during the recent official flag-off of the deep blue project in Lagos by President Muhammadu Buhari, Dr Bashir said: “Since the deployment of the deep blue project assets in February, there has been a steady decline in piracy attacks in the Nigerian waters on a monthly basis.
“We therefore invite the international shipping community to rethink the issue of war risk insurance on cargo bound for our ports. Nigeria has demonstrated enough commitment towards tackling maritime insecurity to avert such premium burden.”
According to non-profit Oceans Beyond Piracy’s 2020 reports, the total cost of additional war risk area premiums incurred by Nigeria bound ships transiting the Gulf was $55.5 million in 2020 alone, and 35 percent of ships transiting the area also carried additional kidnap and ransom insurance totalling $100.7m.
The plan provides compensation for illegal vessel seizures and crew kidnappings even in the absence of ransom demands. It tracks insured vessels on a 24-hour basis, but because the risks are so high, it limits claims to $25m.
