Nigeria Challenges $1.5bn War-Risk Insurance Surcharge, Moves Toward Domestic Maritime Insurance Solution

Nigeria is taking steps to end a $1.5 billion war risk insurance surcharge imposed on ships heading to its ports. Maritime stakeholders have announced plans to create a Nigerian operated Protection and Indemnity club. This effort aims to reduce reliance on foreign insurers and address the financial burden placed on the maritime sector.

The proposal was highlighted during the 3rd Annual Maritime Lecture (MAMAL 2025) held in Lagos. The Minister of Marine and Blue Economy, Adegboyega Oyetola, reiterated the demand for an end to the surcharge, emphasizing that Nigeria’s four-year piracy-free record and substantial investments in security infrastructure render the additional fee obsolete.

Represented by his Special Adviser, Dr. Bolaji Akinola, the Minister stated, “This surcharge is both outdated and inequitable. Nigeria has made considerable strides in enhancing maritime safety through initiatives like the Deep Blue Project and the SPOMO Act. It is imperative that insurers acknowledge this progress.”

The Nigerian Shippers’ Council (NSC) is leading engagements with international underwriters and P&I associations to reassess the country’s risk profile using updated data. The Nigerian Maritime Administration and Safety Agency (NIMASA) has committed to supporting this effort by providing comprehensive security records.

Prominent industry figures, including Engr. Greg Ogbeifun and former NIMASA Director-General Barr. Temisan Omatseye, endorsed the initiative, noting that a local P&I club would not only conserve billions in foreign exchange but also strengthen the domestic shipping industry.

Stakeholders concur that a dual approach, presenting verified evidence to international insurers and developing a sovereign insurance capacity is essential to secure Nigeria’s removal from the high-risk category and safeguard its maritime economic interests.

By Oshuniran Sheriff Ola