By Stephen Ubanna
For years, importers have been crying over the war Risk insurance cost of shipping Nigeria bound goods which they had considered too high compared to what is charged to other shippers in the neighbouring West African countries of Republic of Benin, Ghana,Togo and other countries in the west and Central African sub-regions.
The reason that the underwriting firms around the world had often given for charging the Nigerian-bound cargoes such high premium was the perception of the Gulf of Guinea as ”the most unsafe and least secure maritime environment in the world”. Note that about 65% of the imported cargoes that comes into the Nigerian ports, particular, the Lagos ports of Apapa, Tin-can Island and Port Multi-service Terminal Limited, passes through Fair way Bouy and which must pass through the Gulf of Gulf of Guinea.
According to a Non-profit Oceans Beyond Piracy’s 2020, reports, the total cost of additional war risk area Premiums that was incurred by the Nigerian bound ships transiting the Gulf of Guinea region was $55.5 million . The report further stated that, 35 % of the ships transiting the region also carried additional kidnap and ransom insurance Costs totaling $100.7 million annually which may have informed the continued devaluation of the naira against the world major currencies like the North American country of the United States, US, dollar, United Kingdom Pounds and the EURO, which had translated to the rising prices of imported goods which had subsequently rubbed off on the locally manufactured and Agricultural goods production the country leading to the high cost of living in the country.
The cry became so pronounced that Bashir Jamoh, Director General, Nigerian Maritime Administration and Safety Agency, NIMASA, on assumption of duties in March, 2020, had promised to make the Nigerian waters and the Gulf of Guinea a safe haven for ocean-going vessels laden with cargo coming into the Nigerian ports as a way to reduce the War Risk Insurance premiums. True to his words, he had mobilized operational staff the agency for the Challenges ahead.
The supply of the $195 million Integrated National Security and Waterways Protection Infrastructure, popular, Deep Blue Project, assets , comprising of 16 armoured vessels for coastal Patrol, 17 Interceptor Boats, two Special Mission Vessels., SMV, two Special Mission Aircrafts, SMA, for Surveillance of Nigerian’s Exclusive Economic Zone, EEZ, three Special Helicopters for Search and Rescue Operations, S&R , and four Armoured Aerial Vehicles, AAV, to the agency by the Israeli firm , HLS International Systems and Technologies Limited , may have encouraged the NINASA boss to make the promise.
Working closely with the past and present Chiefs of Staff, Nigerian, Navy and the Nigerian Air Force, NAF, in order to train the personnel to man the water and air equipment, they had come up with plan on how to rid the Nigerian waters and the Gulf of the Guinea of the Pirates and sea thieves. The Navy, had trained 30 officers and the NAF, 43 that would man the sea and air security assets, respectively.
The Israeli security firm that had supplied the security assets to NIMASA, on its part had trained 600 officers to compliment the efforts of the officers drawn from the military , Department of State Security , DSS, Nigerian Police Force, NPF and the Nigerian Civil Defence Commission, NCDC, who were trained locally for the Deep Blue Project.
The task of riding the Nigerian waters and the Gulf of Guinea, of the Pirates and sea thieves by the Maritime Regulatory agency and the other relevant security agencies may have been facilitated with the establishment of the land facility, Command ,Control, Communication, Computer and Intelligence, 4ci centre, for the effective manning of the Platform. The Collaborative efforts of the 4ci, SMV Vessels, and SM, aircraft, trained personnel had resulted in forcing most of the Pirates to relocate to other countries in the West and Central African sub-regions to carry out their nefarious activities. Mention are being made that they are operating in Ghana and Gabon waters at present as Nigerian waters has become a no-go area.
This is evident with the monthly decline in the Piracy attacks of ships laden with Containerised cargoes in in Nigerian waters and the Gulf of Guinea by the Pirates I between May and now. Take for instance in May alone , there was only two recorded incidents of Pirates attack of ships which many had described as a Commendable feat on the part of the NIMASA, boss.
This clearly shows that he is keeping to his promise of ridding the Nigerian waters and the Gulf of Guinea of the bad eggs. The sharp decrease in the attack in of ocean- going vessels laden with cargoes in Nigerian waters and the Gulf of Guinea, as confirmed by the International Maritime Bureau, IMB, in its second quarter reports on the Piracy activities in the region speaks volume.
The IMB feedback, according to informed sources has reconfirmed Jamoh, the NIMASA , helmsman’s Campaigns to force the underwriting firms who have been charging high premium on Nigerian shippers to do a rethink and delist Nigeria among other countries in the world that had been labelled as’’ war risk insurance burden’’.
An elated Jomoh, was said to have told Samuel Jime, Executive Secretary, of the Nigerian Shippers Council, NSC, , who had led a delegation to his office, on Friday, August 27, 2021, that ‘’a sustained reduction in reported cases of Piracy and other maritime crimes in Nigerian waters and the Gulf of Guinea would end the regime of War Risk Insurance Premium on Nigeria-bound cargoes.
Tthe International Shipping Community, which had been under severe pressure over the years to reduce their shipping charges and which they had consistently blamed on the war risk Insurance Premium paid to the underwriters of their vessels and cargoes due to regular Piracy attacks in Nigerian waters and the Gulf of Guinea on their vessels and Crew members appear to be watching the developments in the Nigerian waters and the Gulf of Guinea with keen interest.
An informed source told The Value News that their interest is to see the NIMASA sustainability of the progress made so far in the Nigerian waters and the Gulf of Guinea region in the recent time that had led to a drastic decline in Pirates attack. Aware of the worries of the officials of the International Shipping Community that the agency may not be able to sustain the tempo of the on – gong anti- Piracy war because of past experience may have encouraged him to reassure the them all that the agency have all that it takes to sustain the tempo of the anti-piracy war without any setback that would give room to the Pirates to return to the Nigerian waters and the Gulf of Guinea to carry out attacks on ships.
He may have gladdened the heart of the ship owners plying the Nigerian waters and the Guinea when he noted that the agency ‘’quest to see Nigeria removed from nations considered to have dangerous waters will soon materialise’’ and which Industry stakeholders believe would be’’ to the benefit of the Nigerian shippers’’.
There are indications that the Nigerian shippers would be able to cut not less than N77 million off their annual shipping costs from the removal of the war risk insurance costs which would make the country’s import business to become Competitive than it is currently which had forced many of them to relocate from the Nigerian seaports to the Autonomous port of Benin, Cotonou, and Bollore port, in Republic of Benin and other ports in the West and Central African sub-regions to take delivery of it as transit cargoes.
In apparent response to Jamoh’s speech, during his visit to agency last Friday, Jime , the NSC, boss, had called for closer Collaboration among all the relevant government agencies, maritime, military and para-military, ‘’to enable the country derive the full the full economic benefits of the nation’s maritime sector’’.
He gave kudos to his NIMASA Counterpart for placing fleet expansion in the country as part of his working agenda, stating that ‘’ it would encourage the Indigenous shipping Companies Participation in the lifting of the wet and dry cargoes in the country and which over the years had been dominated by the Foreign shipping Companies which had the vessels and resources to do so.
Recall that as at May, 2021, the Cabotage Finance Fund, CVFF, which the government had established for the Ingenious Shipping Companies to access and borrow money to procure ships already had N132 billion, in the local currency Account with the Central Bank of Nigeria, CBN, and an additional $209 million, in the dollar account.
A source informed the Magazine that the CVFF, has continued to grow in lips and bounds as the shipping Companies have continued to pay the mandatory fee , as theshipping Companies that had outstanding payment to make have continued to defray it . Jamoh, the NIMASA, CEO, had confirmed that 11 Banks , had been approved by the Rotimi Amaechi, a former governor of Rivers state and now minister of Transportation, to handle the disbursement of the CVFF, which may kick-start soon.
Although, Jime, the NSC, Executive Secretary had commended Jamoh over his singular efforts to increase the nation’s indigenous fleet, but he had stressed that ‘’there was no better time to own a national carrier than now’’, meaning that the agency should channel much of the CVFF, to floating a national carrier as obtained in other maritime nations.
He asserted that as he world is looking away from fossil fuels, which is the current mainstay of the nation’s economy,’’there is need to further develop the nation’s maritime sector, which studies had shown is capable of earning the country seven times more than the revenue from the oil sector annually.
Given that the security of Nigerian waters and the Gulf of Guinea which is pivotal for more Container ships coming into Nigerian seaports appears to have been achieved with the combined effort of the NIMASA, military and Par-military personnel, may have informed why Jime, has urged Jamoh, who has set the stage for developing the nation’s maritime sector as a major source of revenue earning for the country to do so.
He may have his reason. The NIMASA Director General, has the ear of the President Muhammadu Buhari, a retired Army General as a performer and ever ready to support him to do his work that would turn the fortunes of the nation’s maritime Industry around.
