September 11, 2025 – Nigeria’s Minister of Marine and Blue Economy, Adegboyega Oyetola, has renewed calls for the removal of the war risk insurance surcharges imposed on vessels calling at Nigerian ports, describing them as outdated, discriminatory, and economically unjustified.
Speaking at an industry forum this week, the Minister stressed that Nigeria’s maritime environment has improved significantly in recent years, citing increased security patrols in the Gulf of Guinea and coordinated regional anti-piracy measures that have reduced incidents of vessel attacks.
Legacy of High-Risk Classification
War risk premiums were introduced more than a decade ago when Nigeria and the wider Gulf of Guinea were classified as high-risk waters due to widespread piracy and kidnappings of seafarers.
At the height of insecurity, shipowners and underwriters factored in additional costs for calls at Nigerian ports. This meant that carriers often paid hundreds of thousands of dollars in extra premiums for a single voyage to Lagos, Port Harcourt, or other Nigerian hubs.
While piracy incidents have sharply declined since 2021—thanks to joint regional operations such as the Deep Blue Project and the Yaoundé Code of Conduct framework—many underwriters have retained the war risk designation, continuing to impose surcharges on ships calling at Nigeria.
Economic Burden
Minister Oyetola argued that the charges are now “an unnecessary burden on Nigerian trade”, inflating the cost of imports and exports.
“These charges are no longer defensible. Nigeria has taken bold steps to secure its waters, and the data proves it. Retaining these premiums penalizes our economy unfairly,” he said.
Industry stakeholders estimate that war risk premiums add millions of dollars annually to Nigeria’s shipping costs, with the expense ultimately passed on to consumers and businesses through higher freight rates and commodity prices.
Industry and Regional Pushback
Nigeria’s stance aligns with broader calls from West African governments and shipping associations to review maritime insurance frameworks in the Gulf of Guinea. In 2022, the International Bargaining Forum (IBF) downgraded Nigeria’s eastern waters from the “war zone” list, acknowledging security improvements, but insurers have been slower to act.
Shipowners and charterers have also expressed frustration, noting that calls to other ports with comparable risk profiles no longer attract similar premiums.
The Road Ahead
The Ministry of Marine and Blue Economy is expected to engage directly with Lloyd’s of London underwriters and other insurance market players to formally push for Nigeria’s reclassification.
Analysts suggest that removing war risk premiums could:
- Reduce freight costs for Nigerian shippers.
- Enhance the competitiveness of Nigerian ports against regional rivals such as Tema (Ghana) and Cotonou (Benin).
- Encourage greater direct vessel calls, particularly from Asian and European mainline operators.
However, insurers may remain cautious, citing residual risks in parts of the Gulf of Guinea and potential spillover from regional instability.
Outlook
As Nigeria positions itself as a key maritime and logistics hub in West Africa, resolving the war risk surcharge issue will be central to its strategy. With security in the Gulf of Guinea showing marked improvement, stakeholders say the time has come for the international insurance market to align premiums with present-day realities.
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