By Osagie Edward

War risk insurance (WRI) is an additional surcharge imposed by international shipping companies on cargo bound for Nigeria. 

It comprises two key components: war risk liability, which covers people and goods aboard the vessel and is calculated based on the indemnity amount, and war risk hull, which covers the vessel itself and is determined by its value. 

This financial burden was initially introduced during the height of Niger Delta militancy and piracy. Although the Nigerian Bureau of Statistics does not have precise data on the total WRI payments made to international insurers, available figures indicate that Nigeria has paid over $1.5 billion in the past three years alone to Lloyd’s of London, Protection and Indemnity (P&I) insurance, and other foreign insurance firms. 

The impact on Nigeria’s economy is staggering: for a Very Large Crude Carrier (VLCC) valued at $130 million, the WRI surcharge per voyage is approximately $445,000. For new container vessels valued at $150 million, the cost rises to $525,000 per voyage.

 Maersk, one of the world’s largest shipping companies, has also introduced a transit disruption surcharge of up to $450 per container, while other shipping lines impose a war risk surcharge of $40–$50 per 20-foot container.

The security concerns that originally justified these premiums no longer exist. Nigeria has not recorded a single piracy incident in over three years, and in 2021, the International Maritime Bureau (IMB) officially removed Nigeria from its list of piracy-prone countries.

Recognizing the severe economic implications of this financial burden, the Nigerian Maritime Administration and Safety Agency (NIMASA) under the leadership of Dr. Dayo Mobereola has launched an aggressive campaign to eliminate war risk insurance on Nigeria-bound cargo. 

The NIMASA Act and the Merchant Shipping Act mandate the agency to promote shipping development, and removing the WRI premium has become a central focus of its maritime reforms. 

The security concerns that originally justified these premiums no longer exist. Nigeria has not recorded a single piracy incident in over three years, and in 2021, the International Maritime Bureau (IMB) officially removed Nigeria from its list of piracy-prone countries.

Over the past five years, NIMASA, in collaboration with the Nigerian Navy, has led an unprecedented crackdown on piracy in the Gulf of Guinea, earning global recognition from the International Maritime Organization (IMO). Despite these achievements, international shipping companies have continued to impose war risk insurance premiums on Nigeria-bound cargoes. In 2023, the International Bargaining Forum (IBF) further validated Nigeria’s progress by delisting the country from the list of high-risk maritime nations. 

With piracy no longer a concern, why has the international shipping community continued to impose these excessive premiums?

 NIGERIA’S EFFORTS TO MITIGATE WRI PREMIUMS 

To address this issue, Nigeria, through the Ministry of Marine and Blue Economy and the Ministry of Defense, made significant investments in maritime security through initiatives like the Deep Blue Project, which has successfully eliminated piracy in the country’s waters for over 30 consecutive months—a record unmatched anywhere in the world. 

In addition, Nigeria collaborates closely with the IMO and other international bodies to combat maritime threats, further reducing its risk classification. IMO Secretary-General Arsenio Dominguez has publicly commended Nigeria’s efforts in securing the Gulf of Guinea. Despite these improvements, shipowners and insurers have refused to acknowledge Nigeria’s new security status, continuing to levy exorbitant premiums on vessels operating in the country.

 MOBEREOLA’S INTERNATIONAL DIPLOMACY: BRINGING GLOBAL ATTENTION TO THE ISSUE

 Determined to break this cycle of financial exploitation, Dr. Mobereola, under the directives of the Minister of Marine and Blue Economy, Adegboyega Oyetola, took Nigeria’s case to international stakeholders, urging them to support the removal of war risk insurance premiums. 

In a major diplomatic move, he engaged Chatham House, where he met with Dr. Alex Vines, Director of the Africa Programme, who agreed to escalate the matter to the United Nations. NIMASA has also engaged major global shipping organizations, including:

• BIMCO (Baltic and International Maritime Council), the world’s largest shipping association.

• The International Chamber of Shipping (ICS).

• INTERCARGO (International Association of Dry Cargo Shipowners).

• INTERTANKO (International Association of Independent Tanker Owners).

 In discussions with these organizations, Dr. Mobereola emphasized that Nigeria has invested billions in maritime security yet continues to be unfairly penalized. 

He urged the global shipping community to recognize the country’s improved security status and remove the unjustified WRI premiums.

Stinne Taiger Ivø, Deputy Secretary General of BIMCO, acknowledged Nigeria’s progress and stated that shipowners should take the lead in pushing for lower premiums. Similarly, Zhou Xianyong of INTERCARGO assured NIMASA of their support in Nigeria’s campaign to be delisted from war risk insurance premium zones. 

Reducing these premiums is critical for Nigeria’s competitiveness in global trade. Lower shipping costs will encourage more international trade, attract foreign investment, and Strengthen Nigeria’s position as a leading blue economy player.

Recently, NIMASA met with a Danish delegation led by Kristin Skov-Spilling, the Chief Technical Advisor from the Danish Ministry of Foreign Affairs. The delegation urged Denmark to advocate for a reduction in war risk insurance premiums. 

Some critics argue that Denmark cannot intervene in private insurance matters, but this argument is flawed. 

Denmark has a significant interest in Maersk Line, which contributes over 15% of the country’s GDP. If Denmark pressures Maersk, other shipping companies will likely follow suit. 

Dr. Dayo Mobereola and his Management team at NIMASA have successfully brought global attention to Nigeria’s unfair war risk insurance burden. 

Now, it is time for all stakeholders—government, industry, and international bodies—to support the removal of this unjustified premium.

 Nigeria has fulfilled its obligations, securing its waters and eliminating piracy. Yet, foreign insurance firms continue to profit while Nigerian businesses and consumers bear the costs. The message is clear: Nigeria cannot continue paying war risk insurance premiums indefinitely. The time for change is now, and let us sustain the momentum.

*OSAGIE EDWARD, FNIPR is the Head of Public Relations at the Nigerian Maritime Administration and Safety Agency, NIMASA.

The Managing Director of the Nigerian Railway Corporation (NRC), Dr Kayode Opeifa, has assured Nigerians of his determination to actualise an enviable regime of service delivery, even as he flagged off a tour of the districts under the NRC in preparation for the Corporation’s upcoming developmental and revitalization initiatives.

He highlighted this at the Iddo Train Station, assuring train passengers, particularly the daily commuters from Ijoko and other border communities in Ogun State, to Iddo and Idumota axis of the Lagos Island, pointing out that the new management would revive the 2.00 pm Mass Transit Train Service (MTTS) in tandem with their request.

Two senior staffers, the District Manager, Engr Augustine Arisa and District Superintendent, Mrs Chidinma Mba, had earlier affirmed that the train services was directly impacting on the wellbeing of the Idumota market, especially the operations of the MTT line, as the market usually shrinks in patronage, any day the train fails to run.

Kayode Opeifa: rising revolutionary initiative…

He expressed satisfaction that the MTT line was already so relevant and assured that he would leave no stone unturned to meet and exceed their expectations.

“NRC management being aware of the centrality of the MTT Kajola to Iddo rail line to the continued prosperity of the Iddo, Idumota and some other big markets in Lagos will not only continue to sustain the line, but work to add addition service after careful commercial market viability and sustainability studies”, Opeifa said, adding that, the transformation of the Iddo Terminal remains central to his management goals; hence the commitment to tangibly improve the terminal’s infrastructure, and boost its capacity to further justify passenger’s confidence and experience.

He maintained that he would not hesitate to bare his fangs and terminate the contract of any contractors found unwilling to go the extra mile to improve in service delivery.

Opeifa also directed the installation of solar panels around the station to improve the lightning condition and assured that a comprehensive review of all land leases around the station was underway.

He recalled the several historical monuments and railway relics and urged corporate organisations and individual philanthropists to support the corporation in the area of the provision of conveniences for train passengers as part of their Corporate Social Responsibility.

At Ebute Metta, which was described as a hub to other districts, the NRC Boss visited the NRC Running Shed of the corporation.

He expressed satisfaction with the observed dedicated commitment of engineers, comprising men and women, particularly the women engineers and technicians, working in the corporation who were in healthy competition with their male counterparts towards ensuring that all the nation’s rolling assets were in enviable conditions.

At the Store, the Managing Director charged that management must embark on the painting of the Corporation’s several legacy buildings across the country, pledging to significantly improve its image as a logistics hub for service delivery and principal mobility provider in Nigeria.

Opeifa frowned on the activities of vandals after noting that there were no scraps in the railway, and reiterated his position that anyone caught vandalizing the rail materials across the country, would feel the full wrath of the law.

He promised that the management would restore to shape as many narrow gauge locomotives as were still serviceable and timely deploy them across the country to enable them serve passenger traffic anywhere it had existing train lines, just as the federal government aggressively continued to invest and expand the national standard gauge corridor.

At the Battery Room, as well as the Laboratory, an inspection of all the mechanical fluids, which was a crucial facility responsible for analyzing the quality and integrity of mechanical fluids used in NRC rail operations, was carried out.

He assured the laboratory workers that he would continue to support their growth and development, having himself trained and once worked as an Analytical chemist.

By the time he got to the Agege Station he was so informed he went into a brainstorming session via a closed door meeting with officials from the Lagos Metropolitan Area Transport Authority (LAMATA), led by the Director Rail Services Engr Olasunkanmi Okusaga, on how to tackle security challenges between the two stations Babatunde Raji Fashola Station and the Lagos State Train Station at Agege Station.

The Railway Corporation Boss later had a guided tour of the Agege Station, led by the Station Manager, Mrs Ese Asowata, affording him the opportunity to go round to check the Station’s conveniences, the VIP Lounge, the Control Room, the Ticketing Lounge and the administrative sections, among several others.

Addressing all challenges, Opeifa maintained that under no circumstances should the ticketers not work to relieve passengers with disability access to the train. 

Opeifa, while addressing the specifics of some train passengers, told one of them, Olatunde Apata, who had raised the issue of what could be done for any passenger who missed his train. 

Apata, who said he was heading to the Prof. Wole Soyinka Station in Abeokuta, Ogun State, had missed his train because he went to pray.

He explained that efforts were in the pipeline to see how the issue of those missing their train would be addressed even as he disclosed that the NRC and LAMATA were working at how to ensure passengers could co-switch and access the metro train to continue their journey from the stations.

The Zonal Coordinator Zone ‘A’, Assistant Comptroller-General of Customs, (ACG) OC Orbih, on Wednesday emphasized the importance of synergy between Customs Command and stakeholders, as well as diligence amongst Officers.

The ACG emphasised this during his first official visit to the Kirikiri Lighter Terminal (KLT) Command. 

During the March 26, 2025, visit, he was heartily received by the Customs Area Controller (CAC), Comptroller EJ Edelduok, who equally presented a report highlighting the command’s achievements since she assumed leadership. 

*L-R: Assistant Comptroller General ACG Orbih with the Customs Area Comptroller, EJ Edelduok, during a working visit on Wednesday in Lagos. 

The report underscored the Command’s efforts in revenue generation and trade facilitation.

ACG Orbih stressed the need for officers to maintain a high level of professionalism and work collaboratively with stakeholders to achieve the Command’s objectives.

He assured the Officers of the Command that he would escalate the challenges facing the command to the Headquarters, ensuring that their concerns are timely addressed. 

He also pledged to play his role by supporting the command, demonstrating his commitment to enhancing operational efficiency and facilitating trade within the zone.

Expatiating on the visit, the Command’s image maker, Chief Superintendent of Customs Victor Ogagbor, stated that with this visit, the ACG reaffirmed his commitment to fostering a collaborative and productive work environment, which would ultimately consummate the Customs Service’s strategic objectives.