FG Presents Security Data to Reclaim $1.5bn Lost to War Risk Premiums

The Federal Government has initiated talks with international insurers—including the International Chamber of Shipping and Lloyd’s of London—to demonstrate that Nigeria has secured its waters, aiming to eliminate the $1.5bn paid in war risk insurance premiums on Nigerian-bound cargoes.

Minister of Marine and Blue Economy, Adegboyega Oyetola, made this known during the 3rd Annual Maritime Lecture (MAMAL 2025) held in Lagos, organized by the Maritime Reporters Association of Nigeria. Themed “Addressing the Burden of War Risk Insurance on Nigeria’s Maritime Trade,” the event highlighted the financial strain caused by these premiums despite a significant drop in piracy incidents in the Gulf of Guinea.

Represented by his media aide, Dr. Bolaji Akinola, Oyetola emphasized the government’s commitment to enhancing maritime security and sharing data-driven reports with international underwriters. He noted that Nigeria has recorded zero piracy incidents over the past four years, attributing this success to the Deep Blue Project—a multi-agency initiative integrating air, land, and sea assets for real-time surveillance and interdiction.

“We must persist in making a robust and compelling case for the removal of this sore charge,” Oyetola said. “Our ministry, in collaboration with NIMASA, is actively engaging with BIMCO, the International Chamber of Shipping, and Lloyd’s of London, armed with empirical data that proves Nigeria has secured its waters.”

The Executive Secretary of the Nigerian Shippers’ Council, Dr. Pius Akutah, also called for a reassessment of Nigeria’s maritime risk status. Represented by Mrs. Magret Ogbonna, Director of Regulatory Services at NSC, Akutah stated that the council is working with Lloyd’s Market Association and P&I clubs to advocate for a data-driven review.

Mr. Godfrey Bivbere, President of MARAN, stressed that war risk premiums hinder Nigeria’s competitiveness and investor confidence. “This burden affects not just shipowners and terminal operators but the entire value chain—from importers and exporters to the average Nigerian consumer,” he said.