Alhaji Aminu Umar, the Managing Director of Sea Transport Services Nigeria Limited, a company specializing in the chartering and operations of refined petroleum product vessels, has expressed that Nigerian shipowners still face high insurance premiums and war risk surcharges, despite the positive efforts of the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Navy in combating piracy and insecurity in the Gulf of Guinea.
Based on records from NIMASA and the Nigerian Navy, there have been no reported pirate activities in Nigerian waterways over the past eighteen months.
Consequently, Nigeria has been removed from the list of piracy-prone countries by the International Maritime Bureau (IMB). The IMB’s latest report attributes the decrease in Gulf of Guinea piracy to the increased presence of naval vessels and the collaborative efforts of coastal authorities, which have had a positive impact on reducing piratical activities in the region.
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However, speaking at the commissioning of five patrol boats by NIMASA, recently in Lagos, Alhaji Aminu Umar, who is also the President of the Nigerian Chamber of Shipping, indicated that these significant achievements have not benefitted Nigerian shipowners and their businesses. In a goodwill message, Aminu emphasized the crucial importance of maritime security in all discussions.
He recounted a recent discussion with Lloyd’s of London, the underwriters for many marine assets, regarding his company’s fleet. Aminu mentioned that some of their ships were not registered under the Nigerian flag, which immediately sparked interest from the Lloyd’s representatives. They sought to offer a better insurance package for these non-Nigerian registered vessels.
According to Aminu, Lloyd’s expressed concerns about Nigeria’s security issues and their reluctance to insure Nigerian-flagged vessels. In addition to war risk charges, they also increased premiums for Nigerian-flagged vessels. By registering the ships under the Liberian flag, the assets received better premium rates, discounts, and were not subject to trading within Nigerian waters. In fact, the insurance fees for Liberian-flagged vessels were only half of what they charged for Nigerian vessels.
