At MARAN’s Lecture, FG Urges Shipowners, Charterers, Cargo Owners to Leverage on VOYWAR 2025 To Address Payment of War Risk Premiums

By DAPO OLAWUNI

The Federal Government of Nigeria has called on shipowners, charterers, cargo owners and legal practitioners to take advantage of the BIMCO War Risk Clause for Voyage Charter Parties 2025 as reviewed, in order to remove the burden of continuous payment of War Risk Insurance Premiums on visiting ships into the country.

Nigeria’s Minister of Marine and Blue Economy, Adegboyega Oyetola has also announced that the Ministry, working with the Nigerian Maritime Administration and Safety Agency (NIMASA) is actively engaging with global shipping bodies and developmental partners such as BIMCO,
Chatham House, Danish government and the International Maritime Organization (IMO) International Chamber of Shipping, Lloyd’s of London among others to discuss Nigeria’s strategic milestones in driving maritime security and the need to leverage them to remove the world risk premium on Nigerian cargoes.

Oyetola stated this at the 3rd MARAN Annual Maritime Lecture (MAMAL 2025) organised by the Maritime Reporters Association of Nigeria (MARAN) held at Four Points by Sheraton Hotel in Lagos on Wednesday.
Represented by the Senior Special Adviser on Media, Dr Bolaji Akinola, the Minister lamented that despite the absence of piracy incidents in the Gulf of Guinea in three years “Global underwriters and insurers remain reluctant to adjust their classifications, costing our nation an estimated $1.5 billion in premiums over the last four years. This is not only punitive but unjust, undermining our competitiveness and raising costs for every Nigerian consumer.

“We must therefore persist in making a robust and compelling case for the removal of this surcharge. My Ministry, working with NIMASA, is actively engaging BIMCO, the International Chamber of Shipping, and Lloyd’s of London, armed with empirical data that proves Nigeria has secured its waters” he said
Buttressing the Minister, the Director General of NIMASA, Dr Dayo Mobereola at the summit stressed that the call for the removal of the world risk insurance premium on Nigerian-bound vessels is a collective action that must not be left to the government alone.

Mobereola who was represented by the agency’s Deputy Director, Reform Coordination, Mr Victor Ilo, charged Nigerian shipowners, charterers, cargo owners and legal practitioners to take advantage of the BIMCO War Risk Clause for Voyage Charter Parties 2025 as reviewed.

Speaking, Mobereola said “To address this burden on Nigerian maritime trade, the Federal Ministry of Marine and Blue Economy and NIMASA have held diplomatic and stakeholder engagements with Chatham House and global shipping bodies such as BIMCO.

“They have also engaged with developmental partners like the Danish government and the International Maritime Organization to discuss Nigeria’s strategic milestones in driving maritime security and the need to leverage them to remove the world risk premium on Nigerian cargo.
While these engagements are still ongoing, we remain focused on sustaining the recorded milestones.
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“I must emphasize that the call for the removal of the world risk insurance premium is a collective action that must not be left to the government alone.

“I understand that the Baltic and International Maritime Council BIMCO World Risk Clause for Voyage Chartered Parties has undergone a significant revision in 2025, replacing the 2013 version that has been in use for over a decade by providing clarity and balance in the additional premiums charged on world risk.
“I therefore call on Nigerian ship owners, charterers, cargo owners, and legal practitioners to study the revised document and see how it can be adopted in charter party agreements for our benefit.
​It is also advised that all relevant stakeholders adhere to the best management practices for maritime security 2025 (BMP5) to enhance their ability to understand, detect, and deter security threats.

“This will ultimately protect seafarers and promote safe and secure maritime operations. In conclusion, we will continue to engage until the desired result is achieved”

He revealed that the International Bargaining Forum (IBM) removed Nigeria as a high-risk maritime zone in 2023, and that collaborations with other regional bodies also contributed significantly to reducing piracy in the Gulf of Guinea waters.

He however acknowledged that despite the recorded milestones of improved maritime security, the impact of the world risk premium on the Nigerian economy has remained enormous.
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“Nigerian importers have paid over U.S. $1.5 billion in world risk insurance premiums over the past three years” he declared.

Also speaking at the MAMAL 2025, the Flag Officer Commanding, Western Naval Command, Rear Admiral Gregory Oamen, stated that the Navy has leverage maritime collaboration with major stakeholders to improve its policing operations to curb maritime incidents for enhanced maritime security. 

However, he said “The prevailing global perception of Nigeria’s maritime environment was largely based on a period of heightened piracy activity in the late 2010s. But a data-driven analysis of recent years tells a completely different story. The data unequivocally demonstrates a significant and sustained decline in maritime incidents, thanks to the concerted efforts of the NN and its strategic partners.

“In 2020, the Gulf of Guinea (GoG) saw a total of 84 attacks on ships, with 135 seafarers kidnaped for ransom. The GoG experienced about 50% increase in kidnapping for ransom between 2018 and 2019 and around 10% increase between 2019 and 2020. However, with the renewed efforts by the NN to increase presence within the GoG, far reaching success has been recorded.

“According to the IMB’s Piracy and Armed Robbery Against Ships Report, Nigeria had 33 in 2017, 48 attacks in 2018, 35 in 2019, 35 in 2020 and 6 in 2021, no attacks in 2022, 2 in 2023 and 1 in 2024. 9.

“The number of reported incidents has plummeted, with the latest data from 2022 showing a complete absence of piracy and kidnapping for ransom while just 1 attempted case in 2024. This remarkable success is not a coincidence, it is a direct result of strategic, sustained and intelligence led operations. Additionally, it would be recalled that the IMB in March 2022 delisted Nigeria as a piracy‑prone country due to sharp decline in attacks while the International Bargaining Forum (IBF) in February 2023 removed Nigeria from “risk maritime nations” designation.

“Also, the IMB Piracy and Armed Robbery Prone Areas and Warnings (2024) reports that, incidents in Nigeria have decreased significantly, but vessels should still remain vigilant as waters are still risky, although on her 2024 Piracy Risk Map, only one case of attack was recorded within Nigerian waters in 2024.

“The IMB, a leading authority on maritime crime, has consistently highlighted this reduction, noting a steep drop in incidents in the Gulf of Guinea region, with Nigeria at the forefront of this success.

“For instance, in 2022, the NN spent a total of 36,809 hours 40 minutes on patrols. The policing operations of the NN led to the arrest of 191 suspects in 2022 and 80 suspects in 2023 respectively.

“The efforts of NN response initiatives have equally made NN maritime environment safe for maritime activities such as offshore exploration and fishing to thrive. Also, the number of ships that call in Nigeria’s Ports has risen from 123 in 2021 to about 145 daily in 2023 while the GDP from fishing has significantly increased from N12 Billion to N15 Billion during the period under review”

In his welcome address, President of MARAN, Godfrey Bivbere said the theme of the MAMAL 2025 “Addressing the Burden of War Risk Insurance on Nigerian Maritime Trade” could not be more timely or relevant as Nigeria strives to reposition itself as a hub of maritime excellence in West Africa.

According to him, the persistent imposition of war risk premiums on vessels calling at our ports remains a significant obstacle to competitiveness, cost-efficiency, and investor confidence.

“It is a burden that affects not just shipowners and terminal operators, but the entire value chain from importers and exporters to the average Nigerian consumer.
MARAN, as the voice of maritime journalism and advocacy, is proud to convene this forum where industry leaders, policymakers, security experts, and global partners can engage in robust dialogue”

Bivbere commended the unwavering commitment of the Federal Ministry of Marine and Blue Economy, NIMASA, the Nigerian Ports Authority, and the security agencies for their ongoing efforts to enhance safety and compliance across ports and waterways.

The MAMAL 2025 which was chaired by frontline shipowner and Chairman of Starzs Investment Ltd, Eng Greg Ogbeifun, also had in attendance, the Secretary General of Abuja MoU, Capt Sunday Umoren, former Director General of NIMASA, Barr Temi Omatseye, President of Maritime Security Providers Association of Nigeria (MASPAN) Mr Emmanuel Maiguwa, President of Africa Association of Professional Freight Forwarders and Logistics (APFFLON) Otunba Frank Ogunojemite, Chief Executive Officer of Lelook Bags, Mrs Chinwe Ezenwa, the Executive Secretary of Nigerian Shippers Council, ably represented by Mrs Margaret Ogbonna among a host of others.