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Nigeria to Save $400bn Annually by Abolishing War Risk Insurance – NIMASA
The Nigerian Maritime Administration and Safety Agency (NIMASA) has announced plans to save the country over $400 billion annually by abolishing the war risk insurance (WRI) premiums on Nigerian-bound cargoes. Over the past three years, Nigeria has spent over $1.5 billion on WRI premiums to international insurers, which are imposed by shipping companies to cover risks associated with piracy, war, and other maritime threats.....KINDLY READ THE FULL STORY HERE▶
NIMASA stated that the WRI surcharge has remained despite Nigeria being removed from piracy-prone lists by the International Maritime Bureau in 2021. The agency pointed out that Nigeria has not had a piracy incident in over three years, and it has made substantial progress in maritime security, including collaborations with the Nigerian Navy to tackle piracy.
The move to remove the WRI is part of the agency’s broader maritime reforms and is expected to alleviate a significant financial burden on the economy. NIMASA has already engaged with global stakeholders, including Chatham House, UN, and other maritime organizations, to advocate for the removal of these premiums.
NIMASA hopes that by eliminating the WRI, Nigeria will be able to channel the $400 billion savings into improving the country’s maritime infrastructure and furthering its economic growth.
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