Maritime industry stakeholders have initiated plans to set up a Protection and Indemnity (P&I) club as a viable insurance alternative for shipping even as Nigeria’s Minister of Marine and Blue Economy, Adegboyega Oyetola, CON, has called for an immediate end to war risk insurance (WRI) premiums on vessels sailing to Nigeria, describing the charges as “outdated, unjust and economically suffocating.”
Speaking at the 3rd Annual Maritime Lecture (MAMAL 2025) of the Maritime Reporters Association of Nigeria (MARAN) in Lagos, Oyetola, represented by his Special Adviser, Dr. Bolaji Akinola, said Nigeria has earned the right to be delisted from the war risk insurance premiums after recording four years of zero piracy.
Meanwhile, shipping bigwigs have commenced plans to float a Nigerian P&I club as an alternative to the global shipping insurers to avail fair insurance costs and push for the removal of WRI premiums on Nigerian-bound vessels.
The Minister, however, revealed that Nigeria has lost over $1.5 billion in recent years to the “baseless” surcharge, despite global recognition of its improved maritime security through the Deep Blue Project, which integrates naval, aerial and land assets. The initiative, implemented by the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Navy, has won praise from the International Maritime Organization (IMO) and saw Nigeria struck off the International Bargaining Forum’s piracy list; yet insurers, especially Lloyd’s of London, have refused to update risk classifications.
“Nigeria’s waters are now among the safest in Africa. Continuing to burden us with war risk premiums is unfair and unjustifiable,” Oyetola declared.
He assured stakeholders that Nigeria is pressing its case with BIMCO, the International Chamber of Shipping, and Lloyd’s with empirical data to prove the country’s security progress.
Oyetola unveiled plans to deepen regional cooperation under the Yaoundé Architecture for Maritime Security and grow a domestic maritime insurance market to keep value within Nigeria.
Declaring the lecture open, the Minister urged stakeholders to present practical recommendations that would shape future policy.
“In just two years, we have shown what vision and determination can achieve. The future of Nigeria’s blue economy is brighter than ever,” he said.
Also speaking, the Executive Secretary of the Nigerian Shippers’ Council (NSC), Dr Pius Akutah, disclosed that the Council, as the port economic regulator and a strong advocate for the protection of shippers’ interests, has commenced international and regional engagements for a review and removal of the war risk insurance surcharge.
Akutah, who was represented at the event by the Director, Regulatory Services at the NSC, Mrs. Margaret Ogbonna, stated that the NSC is working towards engaging with international underwriters, Lloyd’s Market Association, and P&I clubs, to advocate for a data-driven reassessment of the risk status of Nigerian waters.
The NSC boss noted that the Council will also engage with NIMASA and other agencies to compile and present empirical evidence that clearly reflects the current realities of safety in the nation’s maritime domain.
In his remarks, the Director General of NIMASA, Dr. Dayo Mobereola, stressed that significant progress has been made in securing Nigeria’s waters with no recorded piracy incidents in the last 4 years.
Mobereola, who was represented by Mr. Victor Illo, Deputy Director, Reform Coordinating, Strategic Management/ Blue Economy, NIMASA, attributed this success to Nigeria’s Integrated Maritime Security Architecture known as the Deep Blue Project launched in 2021 with the deployment of maritime assets (land, sea, air and intelligence) to secure Nigeria’s waters.
The NIMASA boss also cited the enactment of the Suppression of Piracy and Other Related Maritime Offences (SPOMO) Act 2019, observing that since the year 2020, two major convictions of pirates have been secured by the Federal High Court under this legislation.
“Nigeria’s improved Maritime security led to its delisting by the International Maritime Bureau (IMB) from their list of piracy-prone waters in 2021 and commendation by the IMO. Reinforcing this achievement, the IBF removed Nigeria as a high-risk maritime zone in 2023,” the NIMASA Director General said.
Maritime bigwigs at MAMAL 2025 including; the Chairman of Starzs Marine and Engineering Limited, Engr. Greg Ogbeifun; former Director General of NIMASA, Barr. Temisan Omatseye; recommended the establishment of a Nigerian P&I club as alternative to the global shipping insurers.
Omatseye, during his lecture, recalled his attempt as Director General of NIMASA when he tried get Nigerian-bound ships to bypass the Lloyd’s of London and global insurance giants over the WRI burden – but presidential backing couldn’t be secured to validate the process.
The former President of African Shipowners Association, Omatseye, lamented that the WRI surcharges have no logical template for estimating the costs; even as he stressed that the insurers also neglect the refund of 80% – 90% of the WRI premiums in cases of no-claims.
Ogbeifun, who was also Chairman of MAMAL 2025, disclosed that the Nigerian Fleet Implementation Committee, began a process to establish a Nigerian P&I club and he assured that the process will be re-engineered.
He equally posited that the burden of WRI underscores the need to have Nigerians own vessels that convey her imports and exports.
While moderating the panel session, the President of Maritime Security Providers Association of Nigeria (MASPAN), Mr. Emmanuel Maiguwa, asserted that a well-coordinated approach will be needed to remove the burden, even as he urged the Nigerian Navy and NIMASA not to rest on their oars as an upsurge in maritime threats could dampen the nation’s chances of removing the WRI premiums.
The event was graced by several eminent maritime personalities including; the Secretary General of the Memorandum of Understanding (MoU) on Port State Control for West and Central African Region, Capt. Sunday Umoren; Founder, Le Look Bags, Mrs. Chinwe Ezenwa; Chairman, Mercury Maritime Concession Company, Rear Admiral Andrew Okoja; Head of Operations, Sea Transport Group, Mr. Anthony Joshua; Capt. Olanrewaju Oginni representing the Flag Officer Commanding, Western Naval Command; Deputy Director, Public Relations, NIMASA, Mr. Osagie Edward; Head of Public Relations, NSC, Mrs. Rebecca Adamu; among others.
