Stakeholders in Nigeria’s maritime sector have strongly disputed recent claims by the Minister of Marine and Blue Economy, Adegboyega Oyetola, that piracy has been eradicated in Nigerian waters and that the country no longer bears the burden of war risk insurance (WRI). The Sea Empowerment and Research Centre (SEREC), a prominent maritime advocacy group, revealed that Nigeria continues to pay a staggering $500 million annually as war risk insurance, amounting to $1.5 billion in the past three years.

Dr. Eugene Nweke, Founder of SEREC and a former President of the National Association of Government Approved Freight Forwarders (NAGAFF), criticized the government’s narrative, stressing that shipowners still face enormous security-related expenses despite claims of improved maritime security.

According to Nweke, while piracy incidents have significantly declined, security challenges persist, and shipowners are compelled to hire security escort vessels costing between $5,000 and $8,000 daily for vessels operating in Nigerian waters.

He said,

“The claim that Nigeria has eliminated piracy does not reflect the reality on ground. Shipowners continue to pay hefty security fees, and war risk insurance premiums remain unchanged despite the Deep Blue Project.”


Nweke acknowledged that the Nigerian Maritime Administration and Safety Agency (NIMASA) had invested over $200 million in the Deep Blue Project to enhance maritime security. However, he maintained that tangible economic benefits, such as reduced WRI premiums, are yet to materialize.


War risk insurance is an additional surcharge imposed by international shipping companies to cover risks such as piracy, hijacking, or conflict in high-risk regions. Introduced at the peak of Niger Delta militancy, the premium categorizes Nigeria as a high-risk zone.

Maritime stakeholders argue that the continuation of WRI despite Nigeria’s improved security situation is unjustifiable. SEREC urged NIMASA to intensify diplomatic engagement with global insurers and maritime nations to reassess Nigeria’s risk profile and reduce or eliminate the premium.

Nweke further stated:

“War Risk Insurance premiums are draining Nigeria’s resources. By securing a reassessment of our security status, the government can save hundreds of millions of dollars annually, which can be redirected into infrastructure and economic development.”


Beyond war risk premiums, insecurity continues to inflate the cost of shipping operations at Nigerian ports. Shipowners reportedly spend as much as $1,500 extra per voyage on maritime security due to increased operational risks.

Companies such as Castor Vali Services Nigeria still provide security escort vessels for ships operating in Nigerian waters, indicating that the risk perception among international shipping lines remains unchanged.

The Chairman of the Nigerian Port Consultative Council (NPCC), Bolaji Sunmola, also attributed part of the industry’s losses to the government’s failure to effectively implement the Cabotage Act of 2003, which was designed to boost indigenous participation in coastal shipping. According to him, the sector has lost an estimated $9 billion due to poor enforcement of this law.


Globally, piracy-related costs remain a burden for shipowners, especially in high-risk regions such as the Gulf of Guinea, Singapore Strait, and Gulf of Aden. Stakeholders revealed that shipping companies spend between $5,000 and $8,000 daily on security measures, while installing advanced surveillance systems can cost up to $50,000 per vessel.

Despite the financial strain, experts believe Nigeria’s maritime sector still holds significant potential. Alhaji Aminu Umar, President of the Nigerian Chamber of Shipping, urged the government to create an enabling environment for indigenous investors, stressing that better policies could unlock massive opportunities in the sector.



Earlier this year, NIMASA’s Director General, Dayo Mobereola, appealed to international partners, including the Danish Maritime Security Project, to work with Nigeria in lobbying for the removal of WRI on Nigerian-bound vessels.

Mobereola stated:

“Given our huge investment in maritime security and the near elimination of piracy in recent years, there is absolutely no justification for maintaining the current WRI premiums.”


While the government maintains that Nigeria’s waters are now secure, maritime stakeholders insist that the economic reality tells a different story. Until WRI premiums are reduced and security-related port costs decline, the financial burden on Nigeria’s maritime trade will remain heavy, affecting shipping costs and, ultimately, consumer prices.