NIIRA 2025: Akabogu & Associates Provide Legal Clarity on Nigeria’s New Marine Insurance Regime
Emeka Akabogu
Nigeria’s new marine insurance framework requires stronger institutional capacity, effective enforcement and industry-wide collaboration to deliver meaningful protection for cargo interests, stakeholders have said.
This was the focus of the Nigeria Marine Insurance Forum 2026 Virtual Summit organised by Akabogu & Associates, where maritime and insurance experts examined the implications of the Nigeria Insurance Industry Reform Act 2025 (NIIRA 2025) for insurers, shipping companies, cargo owners and other players across the logistics value chain.
Opening the summit, Senior Partner at Akabogu & Associates, Dr. Emeka Akabogu, SAN, described NIIRA 2025 as a major shift for Nigeria’s marine insurance sector, with implications for risk allocation, domestic underwriting capacity and multimodal cargo operations.
He said the reform raises critical questions around container insurance structures, Protection and Indemnity (P&I) cover and the point at which maritime risks end as cargo moves from vessels to ports, trucks, warehouses and other logistics channels.
“Are we reshaping the sector?” Akabogu asked, noting that Nigeria’s maritime economy requires a stronger domestic insurance ecosystem capable of retaining more value locally.
He referenced the estimated $10 billion charter and freight market size recorded about a decade ago, arguing that the scale of maritime activity presents significant opportunities for local insurers.
Victor Onyegbado, Partner at Akabogu & Associates, said NIIRA 2025 provides an opportunity to address weaknesses in Nigeria’s container insurance regime, particularly as modern supply chains extend beyond traditional sea transport.
“Nigeria seems to be focused only on shipping risks, even though insurance cover is expanded to other modes of carriage,” he said.
A major area of discussion was the transition away from container deposit requirements traditionally demanded by shipping lines as security for equipment return and damage.
While the deposit system provided protection for carriers, stakeholders noted that it often tied down importers’ funds and generated disputes. The new insurance-based approach is expected to ease upfront financial pressure, although concerns remain over whether alternative charges could recreate similar burdens.
Participants also highlighted persistent challenges around container detention, empty-container returns, port congestion and truck turnaround times, warning that insurance reforms must align with improvements in logistics operations.
The summit further examined Nigeria’s limited participation in the global P&I insurance market despite the size of its maritime and offshore economy. Stakeholders argued that stronger domestic capacity could enable Nigerian insurers to retain more premiums currently placed offshore.
Akabogu & Associates identified four key pillars required to translate NIIRA 2025 from legislation into effective market practice.
The first is greater awareness of stakeholders’ rights and obligations under the law, including provisions contained in Sections 82, 116, 203, 210 and 212.
The second is domestic capacity development through initiatives such as training levies under Section 216 and the potential establishment of a Nigerian P&I club under Section 200.
The third is enforcement and litigation, including judicial clarification of key provisions such as offshore insurance placement under Section 204 and import insurance requirements under Section 82.
The fourth is institutionalisation through standard policy wordings, digital insurance infrastructure and stronger regional cooperation, including a proposed Nigeria-Ghana marine insurance alliance.
Stakeholders agreed that the success of NIIRA 2025 will depend less on the strength of the legislation and more on implementation, enforcement and market participation.
For regulators, the priority is ensuring consistent application of the framework. For insurers, the reform presents an opportunity to expand domestic underwriting capacity and retain more maritime risk within Nigeria. For businesses, the expectation is a more predictable insurance environment that provides protection across increasingly complex supply chains.
The forum concluded that NIIRA 2025 has created an important foundation for reform, but its ultimate impact will be determined by how effectively it responds to the realities of Nigeria’s ports, logistics networks and international trade environment.
