Blue Economy
FG Demands Immediate Removal of War Risk Insurance on Nigerian-Bound Vessels
FG Demands Immediate Removal of War Risk Insurance on Nigerian-Bound Vessels
Minister showcases maritime achievements at 3rd MARAN Annual Maritime Lecture, calls $1.5bn insurance burden outdated
By Raymond Gold| August 29, 2025 | Lagos
The Federal Government has called for the immediate review and removal of war risk insurance premiums imposed on vessels bound for Nigeria, describing the charges as outdated, unjust, and detrimental to the nation’s economic competitiveness.
Minister of Marine and Blue Economy, Adegboyega Oyetola, made this call yesterday at the 3rd Annual Maritime Lecture of the Maritime Reporters Association of Nigeria (MARAN) held at Four Points by Sheraton, Victoria Island, Lagos.
Speaking through his Special Adviser on Media and Communications, Dr. Bolaji Akinola, the Minister revealed that these charges, based on outdated perceptions of insecurity, have cost the nation an estimated $1.5 billion in the last few years.
Oyetola emphasized that Nigeria’s maritime security narrative has fundamentally changed, stressing that the country’s narrative of piracy and armed robbery on its waters no longer reflects present realities. He noted that over the past four years, Nigeria has recorded zero piracy incidents due to sustained investments in maritime security, particularly through the Deep Blue Project.
The Deep Blue Project, implemented by the Nigerian Maritime Administration and Safety Agency (NIMASA) in partnership with the Nigerian Navy, integrates air, land, and sea assets to deliver real-time surveillance and interdiction capabilities.
The success of this maritime security initiative has earned Nigeria global recognition, including commendations from the International Maritime Organization, the International Maritime Bureau, and removal from the International Bargaining Forum’s list of high-risk nations.
The Minister, who has served as pioneer minister of the newly created Ministry since 2023, highlighted landmark achievements recorded in just two years. These include:
Infrastructure Development: The government successfully ended the decades-long Apapa gridlock that had crippled port productivity and discouraged foreign investment. The Federal Executive Council has also approved the modernisation of Lagos and Tin Can Island Ports, with plans for Eastern Ports nearing completion.
Policy Framework: Nigeria launched Africa’s first National Policy on Marine and Blue Economy, providing a comprehensive roadmap for shipping, fisheries, offshore energy, aquaculture, tourism, and maritime services.
Revenue Generation: Agency-generated revenues more than doubled within two years, from ₦700.79 billion in 2023 to ₦1.39 trillion in 2024, the highest in Nigeria’s maritime history.
Indigenous Empowerment: The long-stalled Cabotage Vessel Financing Fund has been unlocked to empower indigenous shipowners, while a National Flag Carrier Technical Committee has been inaugurated to deliver a private-sector-led national shipping
Despite these significant security improvements and policy reforms, Oyetola lamented that key global insurers, especially Lloyd’s of London, remain reluctant to update their risk classifications, leaving Nigeria and its consumers to shoulder unfair costs.
The Minister assured industry stakeholders that his Ministry, working closely with NIMASA, is engaging directly with BIMCO, the International Chamber of Shipping, and Lloyd’s, presenting empirical data to demonstrate Nigeria’s security progress.
Oyetola outlined the government’s multi-pronged approach to address the insurance burden, including continued strengthening of maritime security architecture, publication of regular security reports, deepening regional cooperation under the Yaoundé Architecture for Maritime Security, and promoting the development of local maritime insurance to retain value within Nigeria’s economy.
The lecture, themed “Addressing the Burden of War Risk Insurance on Nigeria’s Maritime Trade,” brought together key industry stakeholders to critically examine the continued imposition of war risk charges on vessels calling at Nigerian ports.
Formally declaring the lecture open, Oyetola urged participants to contribute their recommendations, which he said would enrich government policy and strengthen strategies for the collective advancement of Nigeria’s maritime sector.
The Minister concluded on an optimistic note, declaring that the future of Nigeria’s blue economy remains bright and reaffirming the government’s commitment to securing Nigeria’s waters, modernising its ports, empowering local operators, expanding fisheries, and ensuring that the blue economy becomes a pillar of growth, jobs, and sustainability for generations to come.
The 3rd MAMAL lecture continues MARAN’s tradition of drawing attention to pressing maritime issues affecting Nigeria’s trade competitiveness and economic development.
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