Despite being delisted from global piracy watchlists, ships operating in Nigerian waters continue to pay heavy War Risk Insurance premiums—costs that industry observers say are unjustified and economically damaging.
These surcharges, imposed by foreign insurers who still classify Nigerian waters as high-risk, are estimated to cost the country over $500 million annually.
The financial impact trickles down to consumers through higher prices on imported goods, raising concerns among stakeholders about Nigeria’s ability to trade competitively.Although the Nigerian Maritime Administration and Safety Agency (NIMASA) has publicly campaigned against the war risk designation, the premiums persist. This has led to growing frustration among importers, shipowners, and logistics operators who argue that improved maritime security in the Gulf of Guinea is not being reflected in insurance assessments.According to maritime experts, Nigeria’s waters have seen no recorded piracy incidents in over three years. The country was officially removed from the International Maritime Bureau’s piracy hotspots in 2021 and delisted by the International Bargaining Forum in 2023. Despite this, premium surcharges remain in place. For a single voyage, crude oil tankers may incur up to $445,000 in extra costs, while container ships pay as much as $525,000, along with other surcharges per container.Stakeholders are now seeking a coordinated approach to challenge the ongoing classification of Nigerian waters as high-risk. The Maritime Reporters Association of Nigeria (MARAN) has announced plans to address the issue at its upcoming Maritime Lecture in Lagos. The event will bring together representatives from the shipping industry, government, security agencies, legal experts, and international observers to review the continued imposition of the premiums.MARAN argues that the war risk classification is no longer based on current realities, but on outdated narratives that unfairly penalize Nigeria and other Gulf of Guinea nations. The group says the event will serve as a platform to push for Nigeria’s removal from war risk lists maintained by institutions such as Lloyd’s of London.Industry leaders including the Nigerian Chamber of Shipping have called on NIMASA to engage more directly with international bodies like the Joint War Committee, which determines maritime risk classifications. They argue that current diplomatic efforts have yielded little progress and that stronger data-backed advocacy is needed.As Nigeria seeks to boost non-oil revenue and modernize its logistics and trade infrastructure, the continued imposition of war risk charges represents a significant obstacle. Stakeholders hope that new collective pressure will shift international perception and bring financial relief to the nation’s maritime sector.For many, the issue is not just economic—it is a question of sovereignty, fairness, and Nigeria’s right to be treated in line with current global security assessments.