Despite significant improvements in maritime security in Nigeria, multinational shipping companies continue to impose a war risk premium on ships visiting the country. The Nigerian Maritime Administration and Safety Agency (NIMASA) has attributed this to the influence of a cartel within international insurance companies.
According to NIMASA Director-General, Dr. Dayo Mobereola, the premium is not determined by the actual risk level but by a cartel profiting from the status quo. He lamented that these premiums, which significantly elevate freight costs for imports and exports, are being artificially sustained by insurers who are well aware of the improved security situation but prefer to maintain high charges to maximise profits.
Mobereola emphasised that Nigeria alone cannot resolve the issue, stressing the need for a coordinated international effort and collaboration with global maritime organisations to tackle the entrenched interest that sustains the war risk premium.
To address this challenge, NIMASA said it has initiated discussions with key international partners, including taking the matter to the United Nations for proper attention.
With the backing of the UN and other international stakeholders, Nigeria hopes to challenge the insurers and force them to adjust the premiums in line with the actual risk.
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