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International shipping cartel removes Nigeria from paying war insurance premium
He said this has led to the cancellation of the stigma placed on Nigeria as the most dangerous water in the world and the country was removed from the piracy list for the first time in March 2022.H
However, the international shipping cartel refused to remove the country from paying war insurance premiums despite this feat.
This, therefore, led NIMASA to embark on a campaign against the continued imposition of this surcharge which Jamoh described as no longer justifiable in the face of the successes recorded in the fight against piracy.
However, the NIMASA campaign may have eventually paid off as the country has finally exited from this inglorious era of payment of war insurance premiums.
Chief of Naval Staff, Vice Admiral Awwal Gambo said that Nigeria’s exit from the surcharge was owing to improved naval operations in Nigeria’s maritime domain and enhanced security architecture in the country’s sea lanes.
Making this disclosure in Abuja Thursday, the Naval chief said Nigeria was removed from the list of countries paying War Insurance Premium on ships whose destination is Nigeria by Llyods of London, United Kingdom.
The war insurance premium meant that cargo ships and other vessels plying the Nigerian route or whose destination was Nigeria paid a significantly higher premium on insurance due to heightened security fears and attacks including piracy which were a frequent occurrence in the past before the Nigerian Navy overcame the criminal activities of pirates in the country’s sea lanes and maritime domain.
Admiral Gambo noted that “with the removal of the tag, insurance premium to be paid by ships doing business with, or plying Nigerian sea lanes will become normal insurance paid by other countries which are less expensive and will enhance shipping/cargo trade”
Similarly, the Nigerian Navy has signed a Memorandum of Understanding (MoU) through the Navy Holdings Limited (NHL) and Akewa Global Services for the Upgrade and reactivation of the Burutu Dockyard and building of a Naval Logistics Base to be located at Burutu, in Delta State.The MoU on the Burutu Dockyard reactivation/development which is a Nigerian project, aimed at decongesting land transport challenges while reviving inland waterways transport that was abandoned at the jetty since the 1960s.
On the MoU, the CNS said, “It is with great delight that I welcome everyone to this unique collaborative initiative, which is the signing of a Memorandum of Understanding between the Navy Holdings Limited and Akewa Global Services Limited.
“This partnership with the Nigerian Navy is to revive the dock facilities, by upgrading and modernizing the facilities to support maritime commerce, especially in preparation for the take-off of the regional Sealink Inland Water Cargo Transportation.
“This will greatly assist in the movement of bulk cargoes from Nigeria’s hinterland thereby boosting our country’s non-oil export, especially solid minerals and agricultural exports.
Gambo said the desire to safeguard the nation’s maritime domain for socio-economic activities to thrive, prompted the Nigerian Navy to collaborate with Akewa Global Services Limited adding that signing of the MoU is the beginning of good things and better relationships between both organisations and by extension, the good people of Burutu Community.
“It is my hope that this collaboration would continue to blossom and yield expected dividends that could rid the nation’s maritime environment of activities of criminal elements and economic saboteurs while attracting desired development to both parties and the nation at large”, he said, adding “Undoubtedly, this collaboration will further position the Nigerian Navy to support government’s development of sustainable Blue Economy”.
Explaining the legal basis for the MoU, Admiral Gambo said, “Pertinently, the Presidential Executive Order 5 of 2nd February 2018, allows Ministries, Departments and Agencies to partner or engage reputable indigenous professional companies in Joint Venture relationships in realization of corporate objectives.
“Accordingly, this partnership with Akewa Global Services Limited stands to yield great benefits in Local Content Development in the areas of shipbuilding technology as well as other aspects of science and engineering”.
“Therefore, while the Nigerian Navy benefits in enhancing the turnaround maintenance of her vessels, the good people of the Burutu Community would also derive maximum benefits from employment opportunities and corporate social responsibilities that would arise from this collaboration. This partnership will also lead to the establishment of a standard Base to facilitate all-around security of the facility, the community and the entire region.
Articulating other objectives of the MoU, the CNS said, , ‘My vision for the Nigerian Navy is to leverage all factors of national location, technology, training teamwork and synergy to re-energize the Service and enhance her as a well-motivated and ready naval force in the discharge of her constitutional mandate in fulfillment of national security objectives.
“To achieve this, one of the policy thrusts of my administration is geared towards renewal and re-invigoration of the Nigerian Navy Fleet. The strategic objective of this Fleet Renewal Project is to develop and sustain the right mix of ships and assets capable of sustaining the presence of the Nigerian Navy across the span of the nation’s maritime domain.
“Undoubtedly, attaining this objective requires standard shipbuilding capability, repairs and maintenance facilities to enhance operational availability of Nigerian Navy platforms towards curtailing maritime crimes that undermine the economic prosperity of our great nation.
“Although the Nigerian Navy operates 2 shipbuilding and repair facilities, namely the Naval Shipyard Port Harcourt and Naval Dockyard in Lagos, it is believed that these collaborative efforts to develop the Burutu Port and utilize existing shipyard facility, would act as a force multiplier to the Nigerian Navy in ship maintenance and repairs, particularly in the Central Naval Command area of responsibility”.
‘This would further enhance securing the maritime domain as well as protection of critical maritime assets therein. Certainly, the dockyard would be leveraged towards building needed platforms including barges and small craft”, he added.
The CNS thereafter appreciated
President Muhammadu Buhari for empowering the Nigerian Navy towards the actualization of its constitutional mandate, and both ministers of Defence and Transport for their support and guidance toward ensuring safety and security within the maritime domain.
Chief Kenneth Donye, Chairman of Akema Global Services in his remarks recalled that Burutu Dockyard built by the colonial masters during their early trade mission to the Niger Delta Coast in the early 20th century played a very crucial role in the then lucrative inland waterway transportation that existed upto the late sixties, when inland waterway transportation drastically declined in Nigeria as well as the Burutu dock business.
“The partnership with the Navy is to revive this dock, by upgrading and modernizing the facilities to handle modern maritime challenges, especially in the preparation of the take-off of the Regional Sealink Inland Water Cargo Transportation, which will greatly help in the movement of bulk cargo from Nigeria’s hinterland resulting in a boost of our country’s non-oil export, especially for solid mineral and agricultural exports.
He commended the Chief of Naval Staff for approving the partnership, which Includes the establishment of both Naval and Commercial Logistic bases, saying Burutu, will help boost security in the area, as well as increase the shipping and other maritime activities for both the oil and non-oil industries.
“This will also Improve the lives of several communities within the Niger Delta Region, Eastern Region, and the Northern Region, from where most of these bulk cargoes will be transported through the naturally gifted Rivers Niger and Benue Inland Water Channels,” he said.
“What gladdens me most in this partnership, is the Naval security architecture that will be put to bear in these areas of operation. This will help de-stigmatize Burutu and environ as a security-prone area and help attract both local and foreign investors to unlock the investment potentials of this area, which will ultimately translate to wealth creation for both the people and the nation at large.
“This partnership is expected to help revive commercial activity along the rivers Niger and Benue axis, by producing specialized barges, best suited for our river transportation for bulk cargo, against the current trend, where all goods are conveyed majorly through our dilapidated roads and inadequate rail systems.
“It will also help put activity on the several moribund inland and dry ports located in the Northern and Eastern parts of the Country, thus increasing economic activities in these areas. The partnership will help boost the commercial shipping activity of Burutu seaport and other Delta cluster ports.
“While the Navy will be having a 10 Hectares Naval Logistic base, donated by the host community, for their internal use, there will be an additional 50 Hectares Commercial Logistic base to be jointly owned by this partnership which includes the host community, that will help boost commercial businesses and safety within this area of operation.
This icing of this relationship is that the Nigerian Navy is being transformed from not just a maritime security outfit, but to an economic enhancer that provides facilities that help boost commercial activities within their maritime operational zone.”
He commended the efforts of both the Nexim Bank and Sealink towards operationalization of the relationship noting that, “The business advocacy of the Sealink Consortium generated the need for construction of specialized river crafts and barges that will convey hitherto locked bulk cargoes in the hinterland for export.
Also speaking at the signing ceremony, the Managing Director of NEXIM, Nigerian Export-Import Bank, Alhajii Abba Bello disclosed that the bank got involved in maritime activities in a bid to expand the Maritime logistics infrastructure to drive trade and commerce hence its support for the surveying and charting of the nation’s rivers, as well as boost maritime security.
Reiterating that the project required huge capital investments to see its actualization, Alhaji Bello disclosed that NEXIM bank has signed an MoU with AFRI-EXIM bank for a $400million loan facility for the purpose of providing Port Infrastructural Development and other needed infrastructure for the waterways.
The Group Chief Executive of Naval Holdings Limited, Rear Admiral Sirilander Lassa, signed the MoU on behalf Nigerian Navy while Chief Kenneth Donye signed on behalf of Akewa Global Services.
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Beyond the webinar slides: Why NIMASA’S digital registry requires fiscal teeth to succeed
Monday Discourse with Ibrahim Nasiru
The Nigerian Maritime Administration and Safety Agency (NIMASA) recently hosted a well-attended stakeholder webinar focusing on the comprehensive transformation and modernization of the Nigerian Flag Registration system.
Amidst the various technical presentations, the core message from the regulatory agency was clear: a bold, unyielding transition toward a fully digitalized, automated ship registry designed to eliminate human bottlenecks.
While the maritime industry must commend the current leadership under Director-General Dr. Dayo Mobereola for prioritizing technological modernization, we must look beyond the glossy PowerPoint presentations and confront the harsh structural realities keeping indigenous shipowners away from our national register.
Automation is an excellent operational tool, but it is not a commercial magic wand.
The fundamental reason Nigerian shipowners aggressively patronize “flags of convenience” in open registries like Panama, Liberia, or the Marshall Islands is not merely the historical speed of registration.
The primary driver is economic survival.
Open registries offer attractive, predictable fiscal frameworks, minimal corporate tax burdens, and a complete absence of the double-customs duties that routinely cripple local operators right here in Nigeria.
If NIMASA truly wants to build a globally competitive flag registry, it must realize that digital speed must be matched by structural fiscal relief.
It is simply not enough to promise a shipowner that they can register a vessel online in 48 hours.
The real question that determines industry compliance is: what is the financial cost of flying the Nigerian flag after that digital registration is complete?
Currently, local shipowners face staggering customs duties on imported vessels, heavy corporate taxes, and an absolute lack of access to single-digit financing.
These financial bottlenecks make indigenous operators instantly uncompetitive against foreign-flagged vessels operating within our own domestic waters.
A digital registry that merely digitizes bureaucratic processes without reducing the underlying operational costs will ultimately fail to attract the required maritime tonnage.
To make this digital transition meaningful, NIMASA must look closely at the implementation of the Coastal and Inland Shipping (Cabotage) Act of 2003 and the Merchant Shipping Act.
The spirit of the Cabotage Act was designed to empower indigenous operators, yet foreign vessels flying foreign flags still dominate our coastal trade.
This is because flying the Nigerian flag carries a financial penalty rather than a commercial advantage.
Therefore, NIMASA must urgently step outside the traditional boundaries of its maritime regulatory mandate and actively collaborate with the Federal Ministry of Finance and the Nigeria Customs Service.
The agency must champion concrete fiscal incentives. This includes negotiating comprehensive tax holidays for newly registered indigenous vessels and securing a permanent waiver on customs duties for commercial ships flying the Nigerian flag.
Furthermore, the long-overdue disbursement of the Cabotage Vessel Financing Fund (CVFF) must be strategically integrated into this new digital dawn.
A shipowner who willingly registers their vessel under the Nigerian flag should automatically qualify for priority financial evaluation and access to these single-digit intervention funds to expand their fleet.
The maritime industry does not just want a registry that is easy to access online; we want a registry that makes economic sense to maintain.
The real success of NIMASA’s flag reform will not be measured by the number of webinars hosted or the smoothness of its digital portals.
It will be measured by the volume of actual tonnage that returns to the Nigerian flag.
Until NIMASA collaborates with fiscal authorities to put real economic teeth behind its digital promises, the Nigerian flag registry will remain technically advanced but commercially empty.
Ibrahim Nasiru, a public affairs analyst, write from Abuja.
Headlines
Marine Platforms hails impact of Cabotage regime on indigenous shipping
—as NIMASA reiterates its commitment to its implementation
Funso OLOJO, Editor
The Federal Government has reaffirmed its commitment to using Nigeria’s Cabotage regime to deepen indigenous participation in the maritime sector, with the Nigerian Maritime Administration and Safety Agency (NIMASA) declaring the development of local shipping capacity a priority.
The Director-General of NIMASA, Dr. Dayo Mobereola, stated this during an inspection tour of the African Pioneer Lagos, a specialised offshore Diving Support Vessel (DSV) operated by Marine Platforms Limited.
The visit, according to the NIMASA DG, underscored the growing capacity of Nigerian-owned and Nigerian-flagged vessels to undertake highly specialised offshore operations that were traditionally dominated by foreign operators.
The African Pioneer Lagos, with IMO Number 9808613, is a Nigerian-flagged DSV measuring approximately 143 metres in length, with a deadweight of about 8,000 metric tonnes.
The vessel is equipped for specialised deep-water subsea construction, diving, inspection and offshore oil and gas operations.
Mobereola said he was impressed by the vessel’s capabilities, stressing that Nigerian-flagged vessels with such capacity should enjoy priority in the nation’s maritime space.
“I’m quite happy at what I have seen today after the tour of this 8,000 metric tonnes African Pioneer Specialised Vessel.
“A vessel such as this flying the Nigerian flag should have priority over any foreign vessel.
“We are automating the Nigerian Ship Registry to make it more attractive and to ensure that more vessels like this fly the Nigerian flag.”
The NIMASA boss said improving the attractiveness and efficiency of the Nigerian Ship Registry was critical to encouraging more shipowners to register their vessels under the Nigerian flag.
He added that strengthening the Cabotage regime remained central to the Federal Government’s efforts to build indigenous shipping capacity and ensure that Nigerian companies and professionals occupy a greater share of opportunities in the country’s maritime and offshore sectors.
For the Chief Executive Officer of Marine Platforms Limited, Mr. Taofeek Adegbite, the company’s experience demonstrates the impact that the Cabotage regime and Nigerian Content legislation can have on indigenous shipping companies.
Adegbite said Marine Platforms had benefited significantly from the policy since acquiring its first vessel, Mt. African Vision, in 2012.
He said the company was proud to operate its vessels under the Nigerian flag and encouraged other Nigerian shipowners to embrace the Nigerian Ship Registry.
“Since 2012, when we got our very first vessel, ‘Mt. African Vision’, we are happy and proud to say NIMASA’s Cabotage Regime and the Nigerian Content Development and Monitoring Board Act has played a major role in ensuring that our vessels have contracts on a regular basis.
“We have no regret flying the Nigerian flag and I will invite more ship owners to register their flags in the Nigerian Ship Registry.”
Adegbite, however, called for greater attention to the classification and certification of crews operating large and highly specialised vessels.
“At the moment, we would appreciate a classification in such a way that the crew who are operating very big vessels are given special attention so that more very large vessels can fly the Nigerian flag,” he said.
He commended NIMASA for its support, stressing that the African Pioneer Lagos demonstrated that Nigerian companies and maritime professionals possess the technical capacity to operate sophisticated vessels to international standards.
According to him, the continued development of Nigerian-flagged vessels would also create greater opportunities for indigenous maritime manpower and professional development.
Adegbite said Nigeria could learn from countries that had successfully developed specialised niches within the global maritime industry.
He cited the Philippines, which has established a strong global reputation in seafaring, and Norway, renowned for shipbuilding, arguing that Nigeria could equally develop a globally recognised area of maritime specialisation.
He stressed that sustained government policies, effective implementation of the Cabotage regime, access to finance, appropriate regulation and development of maritime manpower would be essential to achieving that objective.
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MAMAL 2026: Anishere, Ani demand stronger maritime media, more women in leadership
Gloria Odion, Maritme reporter
President of the Maritime Arbitrators Association of Nigeria (MAAN), Chief Jean Chiazor Anishere, SAN, and President of the Women’s International Shipping and Trading Association (WISTA) Nigeria, Dr. Odunayo Ani, have called for a stronger and more professional maritime media and greater representation of women in leadership and decision-making positions across Nigeria’s maritime and blue economy sectors.
The two industry leaders made the call at the 4th Annual Maritime Lecture of the Maritime Reporters Association of Nigeria (MARAN), where they stressed that credible journalism and inclusive leadership were critical to ensuring accountability, transparency and sustainable growth in the maritime industry.
Represented at the event by Mrs Oyeyemi Jimi-Salami, Anishere said an informed, independent and professionally grounded maritime press was indispensable to the development of the sector, particularly as Nigeria intensifies efforts to unlock the economic opportunities inherent in the Blue Economy.
She commended MARAN for its sustained engagement with critical maritime issues and what she described as its commitment to responsible reportage.
According to her, the association’s annual lecture had become an important platform for industry stakeholders to interrogate emerging challenges, exchange ideas and seek practical solutions to the problems confronting the maritime sector.
Anishere noted that although sound policies, effective regulation and infrastructure investment were essential to maritime development, these could not deliver the desired results without a knowledgeable media capable of educating the public, scrutinising government policies, promoting transparency and demanding accountability from industry players.
She urged MARAN to continue using its platform to promote professionalism, innovation, accountability and sustainable development in the maritime industry.
“Journalism remains a key pillar of a vibrant maritime sector because it strengthens public confidence, supports informed decision-making and ensures that critical industry issues receive the attention they deserve,” she said.
Meanwhile, Ani called for a fundamental shift in the approach to women’s participation in the maritime industry, arguing that it was no longer sufficient merely to promote inclusion without creating clear pathways for women to attain leadership and decision-making positions.
She said WISTA Nigeria would continue to expand its mentorship, networking, advocacy and leadership development programmes to equip women with the skills, experience and opportunities required to advance in the sector.
Ani challenged government agencies, private-sector operators and other maritime stakeholders to go beyond rhetoric by recruiting, retaining, promoting and sponsoring qualified women, while adopting inclusive workplace policies and setting measurable targets for gender diversity.
She also called for concerted action against discrimination, unequal access to opportunities and unsafe workplace practices which, she said, continued to impede the advancement of women in the maritime industry.
The WISTA Nigeria president further urged male professionals and industry leaders to become active allies in promoting gender equality by mentoring, sponsoring and advocating for women in their organisations.
Ani stressed that women should not be regarded as mere participants in Nigeria’s maritime development but as critical drivers of innovation, leadership and sustainable economic growth.
She argued that providing women with equal opportunities to lead and contribute would not only advance fairness but also strengthen Nigeria’s ability to fully harness the enormous economic potential of its maritime and blue economy.
The speakers’ interventions at the MARAN lecture underscored the growing recognition that Nigeria’s maritime transformation requires not only infrastructure, policy and investment, but also a credible media that can hold the industry to account and a leadership structure that draws fully on the talents of both men and women.
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