The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dayo Mobereola, revealed on Monday that the persistent war risk premium imposed on vessels operating in Nigerian waters is influenced by a cartel within the international insurance sector.

Despite significant improvements in maritime security, this premium continues to inflate the cost of freight for Nigerian-bound cargo.

Dr. Mobereola highlighted the ongoing challenge during an interactive session with maritime journalists,

“One of the points I raised during my visit to Chatham House is how the war risk insurance placed on Nigerian-bound cargoes can be reduced. It is a cartel that is behind the war risk insurance premium. They are making so much money from it and will rather leave it the way it is than remove it,” Dr Mobereola explained.

He added that, “If Nigeria maintains zero piracy issues on her estuaries for the next ten years, they won’t remove the war risk insurance because they are making so much money from it. In all honesty, Nigeria alone cannot do it. We need the international maritime organisations to be with us.”

Dr Mobereola affirmed that with the support of the United Nations and other international stakeholders, Nigeria would be in a stronger position to challenge the insurers, compelling them to adjust the premiums in line with the actual risk.

Regarding the Certificate of Competency (COCs) and the development of the Officer of the Watch (OOW), the NIMASA DG assured that the agency is working diligently to address the limitations of these certificates.

On the N50 billion modular floating dock, Dr. Mobereola stated that, “The initial plan for the floating dock was not the right one. We are going to put the Modular Floating Dock to very good use so that once it’s in operation, it will benefit the economy, seafarers, and NIMASA itself. We need to place the modular floating dock in an appropriate location. It is just a matter of time; we will soon get that done.”

Concerning the Cabotage Vessel Financing Fund (CVFF), Dr. Mobereola noted, “The CVFF is with the Federal Government. It has not been touched. It is for the ship owners and for the development of the Nigerian shipping industry. We are currently working on fine-tuning the modalities for the CVFF disbursement. Once we are done, we will inform the industry.” (Nigerian Tribune)

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