Shippers Council Advocates Data-Driven Reassessment of Risk Status of Nigerian Waters

By DAPO OLAWUNI

The Nigerian Shippers Council has said that it is working towards engaging
with international underwriters, Lloyd’s Market Association, and
P&I clubs, to advocate for a data-driven reassessment of the risk
status of Nigerian waters.

Executive Secretary of the Council, Barr Pius Akutah stated this at the MARAN Annual Maritime Lecture (MAMAL 2025) organised by the Maritime Reporters Association of Nigeria (MARAN) in Lagos on Wednesday.

Akutah noted that recently, Nigeria through concerted efforts by the Nigerian
Navy, Nigerian Maritime Administration and Safety Agency (NIMASA), and strategic partnerships with regional and
international bodies, has recorded significant reduction in piracy
and armed robbery at sea.

Despite these strides, however, he said Nigeria remains unfairly classified as
a high-risk shipping zone, thereby attracting exorbitant war risk
insurance premiums and surcharges to the tune of over $1.5billion in the past three years alone to Lloyd’s of London, Protection and Indemnity (P&I) insurance, and other foreign insurance firms.

The Shippers Council boss who was represented at the function by Director of Regulations, Mrs Margaret Ogbonna noted with concerns that these costs are ultimately transferred to Nigerian importers, exporters, and consumers, inflating the price of goods and undermining the competitiveness of Nigeria’s trade.

“The Nigerian Shippers’ Council, as the Port Economic Regulator
and a strong advocate for the protection of shippers’ interests, has
consistently called for a review and removal of this war risk
insurance surcharge.

“It is our firm belief that the continued imposition of these premiums is no longer justifiable, given the improved security metrics and Nigeria’s demonstrable commitment to safe shipping.

“Base on the report we are getting, the NSC is working towards engaging
with international underwriters, Lloyd’s Market Association, and
P&I clubs, to advocate for a data-driven reassessment of the risk
status of Nigerian waters.
We will also engage with NIMASA and other agencies to compile and present empirical evidence that clearly reflects
the current security realities in our maritime domain.

“Furthermore, the Council supports ongoing discussions at ECOWAS, the
Gulf of Guinea Maritime Collaboration Forum (GOGMCF/SHADE), and IMO platforms, aimed at securing recognition of Nigeria’s security achievements and the need for fairer treatment by the
global shipping and insurance communities” he said