By Seun Ibiyemi
The Sea Empowerment and Research Centre (SEREC) has appealed to the Federal Government to collaborate with international insurance providers to reassess Nigeria’s maritime risk profile and renegotiate the war risk insurance premiums imposed on vessels bound for Nigerian ports.
This appeal was contained in a communiqué released on Wednesday in Abuja by SEREC’s Head Researcher, Mr Eugene Nweke, titled “Three Years of Zero Piracy Attacks on Nigeria-Bound Vessels at the Gulf of Guinea: Focus on the Opportunity Costs Within.”
Nweke acknowledged the significance of Nigeria’s recent milestone—three consecutive years without piracy incidents—under the Deep Blue Project, describing it as a commendable stride in maritime security. However, he maintained that this success must be critically examined in the context of its financial implications.
“Despite achieving a piracy-free record, Nigeria has paid over $1.5 billion in war risk insurance premiums to international insurers over the past three years, averaging $500 million annually,” Nweke stated.
He expressed concern that this continued financial outlay, even after the elimination of piracy threats, is not only burdensome but also counterproductive. He noted that international insurers still classify Nigeria-bound vessels as high-risk, imposing elevated premiums which translate into an annual windfall exceeding $1 billion for insurance firms.
“This situation raises important questions about the opportunity cost of sustaining maritime security under current terms. The persistent premium payments suggest the war risk regime may be benefiting insurers more than Nigeria’s economic interests,” Nweke added.
He lauded the Nigerian Maritime Administration and Safety Agency (NIMASA) for its ongoing campaign to scrap these premiums and acknowledged its consistent advocacy based on Nigeria’s improved security record.
Nweke encouraged NIMASA’s leadership to intensify engagements with global insurers to reassess Nigeria’s risk classification and revise the premiums accordingly.
“Revising these costs would free up critical financial resources that could be channelled into economic development. These include upgrading port facilities, expanding logistics capabilities, enhancing transportation networks, and boosting the fisheries sector,” he noted.
According to SEREC, reinvesting savings from reduced premiums into the maritime sector would yield broad economic benefits, including increased food security, better livelihoods for fishing communities, and more efficient port operations.
Nweke also called for greater transparency in maritime security operations and incident reporting, to reinforce the credibility and effectiveness of the Deep Blue Project in the eyes of international partners.
He further urged the Federal Government to prioritise investments in maritime infrastructure, such as the modernisation and digitalisation of ports, development of jetties, and expansion of shipping facilities, all of which would improve trade efficiency and reduce congestion.
Nweke concluded that a renegotiation of Nigeria’s maritime risk status and associated insurance costs is long overdue and would represent a pragmatic step toward sustainable economic advancement.