By Stephen Ubanna
For much of last year and now, Bashir Jamoh, Director General, Nigerian Maritime Administration and Safety, Agency, NIMASA, had continuously contacted Lloyd and other foreign insurance Companies on the need ‘’to end the war risk insurance on Nigeria- bound cargoes’’.
War Risk Insurance Premium, according to an informed source is a type of insurance, which covers damage due to acts of war, invasion, insurrection rebellion and hijacking. The source disclosed that it is commonly used in the shipping and aviation industries, the world –over.
Suffice it to say that , it has two components: war and liability, which maritime experts had said cover both people and the goods inside the ship and calculated based on the amount and war risk Hull, which covers the vessel, itself , based on the value of the craft.
A NIMASA, source who confided in The Value News that the Premium varies from country to country depending on their expected liability to which the vessel will travel, and the war risk phenomenon, which was known to the countries with high rate of Piracy activities.
A report of the nonprofit oceans Beyond Piracy in 2020, had revealed that the total cost of additional war risk premiums incurred by Nigerian bound vessels laden with cargo was $5.5 million yearly. The report further revealed that 35% of the Nigeria bound ships transiting the Gulf of Guinea, GoG, described as one of the most dangerous ship routes in the world also carried additional kidnap and ransom insurance Premium totaling $100.7 million.
As a prelude to the reduction of piracy and sea robbery activities in Nigerian waters and the GoG, President Muhammadu Buhari, had in 2017, awarded a $195 million contract to an Israeli security firm, HLSI System and Technologies Limited for supply of 17 Interception Boats, for coastal patrol, 16 armoured Vehicles, three Helicopters, and two Special Mission Vessels .
This is addition to the supply of two Special Mission Aircrafts, for Surveillance of Nigerian Exclusive Economic Zone, EEEZ and four unmanned Aerial Vehicles. The government was said to have also approved a10% Management Fee for the security assets to the Israeli firm.
The Israeli security firm, was said to have virtually supplied all the security assets to NIMASA, for the Integrated National Security and Waterways Protection Infrastructure, popular, Deep Blue project. Jamoh, the NIMASA, Director General had confirmed that the deployment of the maritime security assets, currently being managed and operated by the Nigerian Navy, under the close watch of Vice Admiral Awwal Zubairu Gambo and Nigerian Air Force, NAF, which has Air Marshal Oladayo Iiaka Amao, as the Chief Of Air Staff,, CAS, were said to have drastically reduced the risk of piracy and sea robbery in Nigerian waters and the Gulf of Guinea GoG.
Even the International Maritime Bureau, IMB, a specialized a specialized Department of the International Chamber of Commerce, with responsibilities in fighting crimes related to maritime trade and transportation , particular, piracy and protection of the Crew of ocean –going vessels, which has its reporting centre in Kuala Lumpur, Capital of the Asian country of Malaysia had acknowledged the fact that’’ since the deployment of the maritime assets in Nigerian waters and the GoG, ‘’there has been a steady decline in piracy attacks on a monthly basis’’.
The Bureau had reported, that’’ Nigeria recorded one of the lowest number of cases of piracy attack on vessels’’, in in the first half of 2022,which is an indication of the Maritime Regulatory agency and other relevant agencies effort in ‘’raising awareness to the fact that Nigeria waters and the GOG region are now safe for ocean –going vessels globally.
This may have informed why the NIMASA helmsman has made it clear to the International Community that ‘’it is no longer feasible to charge war risk premium on Nigerian bound vessels laden with cargo’’. He was said to have repeatedly urged them ‘’to have a rethink on the issue of war risk insurance Premium on Nigeria bound vessels laden with cargoes’’, insisting that the country has demonstrated enough commitment towards tackling maritime insecurity to avert such ‘’premium burden’’.
He was said to have made it clear to those that cares to listen that ‘’the removal of the war risk Premium on the Nigerian- bound vessels laden with cargo is premised on ‘’the sustained security to Merchant shipping in Nigerian waters and the greater half of the GoG’’.
The Kaduna state born technocrat and maritime poster boy is optimistic that with the continued collaboration with other relevant agencies, particular, the Navy, and ‘’ adequate sensitization of the international community of the gains that have been achieved over the last two years in containing the activities of the pirates and sea robbers in the GoG, particular, the Foreign Insurance firms would have no option but ‘’to declassify Nigeria from the league of Somalia with the removal of the war risk insurance premium’’ for the benefit of Nigerian importers’’.
The NIMASA , CEO, who was said to have met with lucky Irabor, an Army General and Chief of Defense Staff, CDS, and who incidentally is the General Officer Commanding, GOC, commanding the four member-nation: Nigeria, Niger, Chad and the Central African country of Cameroun, Multi- national Joint Task Force, MNJTF, for he Counter –Insurgency war in the north east geo-political region, recently, had discussed issues of national security with him at the Defense Headquarters, Abuja, the Federal Capital Territory, FCT.
An insider disclosed, that the duo discussed freely as the CDS, was said to have given his words that the military will continue to support the agency in its anti-piracy war’’ to rid Nigerian waters and the GoG, region of the Criminal elements.
