Headlines

Why Nigeria still pays war risk insurance charges despite zero incident of piracy in the Gulf of Guinea – MASPAN

Emmanuel Maiguwa

Funso OLOJO

Importers in West African countries, especially Nigeria, have continued to pay huge war risk insurance premiums on their cargo despite the zero piracy incident in the Gulf of Guinea because of the complicated issues of drug and human trafficking incidents that usually lead to the detention of vessels and payment of huge penalties by arrested vessel owners.

The Chairman, AMANO/ MASPAN Planning Committee, Mr. Emmanuel Maiguwa made this clarification during a press conference held at the secretariat of the Maritime Reporters Association of Nigeria (MARAN) on Friday, August 16th, 2024.

Maiguwa, who was speaking towards the preparation of an international summit on drug and human trafficking on board ships slated for this Thursday, August 22nd, 2024 in Lagos, said that the delay suffered by vessels involved in incidents of drug and human trafficking with the attendant huge cost of penalty paid by ship owners have made international shipping cartels to continue to impose war risk charges despite the degradation of piracy in the Gulf of Guinea.

It would be recalled that the Nigerian Maritime Administration and Safety Agency (NIMASA) has shouted itself hoarse on the need for foreign insurance companies to remove the vexed war risk premium slammed on Nigeria-bound vessels following the zero incident of piracy in the Gulf of Guinea.

The Director General of NIMASA, Dr. Dayo Mobereola, has fingered the international shipping cartel behind this imposition and enlisted the support of Chatham House in London to escalate this issue at the United Nations Security Council in order to force the hand of the cartel to stop the imposition.

However, Maiguwa has provided a critical insight into how shipowners and importers lose millions of dollars to complicated drug trafficking and stowaway investigations in countries without adequate legal frameworks to deal with such cases on time.

He noted that a ship can be detained for several weeks or months while investigating to determine the source and suspects in a case of drug discovery in the ship when it calls at a port.

Similarly, according to him, investigating the country of origin of stowaways discovered in a ship could be herculean, requiring the detention of an affected vessel for several weeks and leading to huge losses in time and money.

These losses incurred by shipowners are shared or passed wholly to the Importers who are users of the shipowners’ services.

MASPAN is convinced that this is part of the reasons importers in West African countries, including Nigeria continue to pay billions of dollars annually as war risk charges even when the countries are peaceful and with no incidents of piracy recorded in the Gulf of Guinea in the last two years.

Also, MASPAN explained that seafarers are not willing to work in countries without legal clarity as to how to deal with drug and stowaway discoveries on a ship as complications from these cases could mean harsh realities for them.

It is in light of the forgoing that MASPAN and the Alumni of Maritime Academy of Nigeria, Oron (AMANO) are bringing shipping industry stakeholders and relevant drug regulatory agencies together to brainstorm on Nigeria’s capacity to handle drug trafficking and stowaway investigations within the shortest possible time-frame.

Chairman of the summit planning committee, Emmanuel Maiguwa said: “If we have a scenario where drugs have been discovered in a ship, the regulatory agency would have to detain the ship for investigations.

” That process will take a very long time and during that process, a ship will have to foot the cost and other administrative costs.

“So ships will always be afraid to do business in countries where they are likely to be detained for too long when this happens.

“This is what we want to bring to the knowledge of the industry and find a solution that allows the country to handle these issues within a short time.

“We are working with the incidents provided by countries where this type of matters are handled and cleared within 24 hours.

“The maritime summit on Drug Smuggling and Human Trafficking by Ship will be chaired by the Honourable Minister of Marine and Blue Economy, Gboyega Oyetola, who has been mandated to chart the course for the new ministry by His Excellency, President Bola Ahmed Tinubu at Eko hotels, Thursday, August 22, 2024, by 10 am”

He encouraged maritime stakeholders with interest to contact the summit’s planning committee to register for the event which is scheduled to hold at Eko Hotel, Victoria Island, Lagos on August 22, 2024.

Expressing concerns over such incidents, Maiguwa, who is Chief Executive Officer, Bricks Limited, a maritime security firm, disclosed that ships have been detained for several months while their crew were placed on trial and forced to remain without seeing their families for several years in cases of drug smuggling.

Maiguwa continued: “On the part of Human Trafficking, cases of stowaways, especially in Lagos ports, have continued to cause delays to vessels when they are found before vessel departure.

” Cases, where discoveries were not made before departure, have continued to burden shipowners because of the very complex administrative protocols involved in handling stowaways on ships.

“Having considered the disruption, these activities can pose to shipping operations, increased cost, the trauma it could have on seafarers, and how counterproductive it could be to a maritime country like Nigeria that is struggling to realize the potential of her “blue economy”, we have come together to bring stakeholders to discuss these issues with a goal to arriving at a solution that serves the industry.

“The goal is to align with critical agencies in making sure that drug and human smuggling and trafficking in the maritime domain are reduced, if not eradicated, with perpetrators penalized in a way innocent parties are not made to pay the price, and the industry is not deprived of its growth potentials.”

At the end of this conference, we hope that stakeholders will arrive at workable solutions and mandate a working group to ensure the actualization of the resolutions reached.

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Headlines

NIWA partners ICPC to strengthen internal transparency in its operations

Gloria Odion, Maritime Reporter

The National Inland Waterways Authority (NIWA) has announced new strategies aimed at improving its operational system and enhancing collaboration with key stakeholders as part of efforts to boost efficiency and accountability.

Speaking at a post event Press Conference at NIWA Headquarters Lokoja, the Acting Managing Director, Umar Yusuf Girei, while answering questions from journalists stated that, the organization convened a two -day Executive and Anti-Corruption training with the theme “Strengthening Integrity and Revenue System in Inland Waterways Management” organized for Board Members, Management and Area Managers and also 2026 NIWA Management Retreat in Abuja.

The Acting MD noted as part of the Renewed Hope Agenda of President Bola Ahmed Tinubu,with the support Adegboyega Oyetola, Minister of Marine and Blue Economy, the Authority is focused on aligning institutional goals in ensuring better service delivery to Nigerians.

He further said, as part of its anti-corruption drive, the Management held discussions with the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to explore measures for strengthening transparency within its operations.

Girei therefore, assured staff that the ongoing reforms under his watch would translate into improved service and better working conditions.

“NIWA remains committed to continuous improvement and stakeholder engagement and the reforms are expected to enhance both internal performance and public confidence”. he stated.

Headlines

Navy appoints new Maritime Guard Commander for NIMASA

Gloria Odion, Maritime Reporter

The Chief of the Naval Staff, Vice Admiral Idi Abbas, has approved the appointment of Commodore Reginald Odeodi Adoki as the Commander of the Maritime Guard Command at the Nigerian Maritime Administration and Safety Agency (NIMASA).

Commodore Adoki takes over from Commodore H.C Oriekeze who has been redeployed.

Commodore Adoki, a principal Warfare Officer specializing in communication and intelligence, brings onboard 25 years experience in the Nigerian Navy covering training, staff and operations.

As a seaman, he has commanded NNS Andoni, NNS Kyanwa and NNS Kada.

It was under his command that NNS Kada under took her maiden voyage, sailing from the country of build (the United Arab Emirates) into Nigeria.

He was commissioned into the Nigerian Navy in 2000 with a BSc in Mathematics.

He has since earned a Masters in International Law and Diplomacy from the University of Lagos and an M.Sc in Terrorism, Security and Policing at University of Leicester, England.

He is currently pursuing a Ph.D in Defence and Security Studies at the National Defence Academy (NDA).

He is a highly decorated officer with several medals for distinguished service.

Welcoming the new MGC Commander to the Agency, the Director General, Dr Dayo Mobereola, expressed confidence in Adoki’s addition to the team, emphasising that it will further strengthen the nation’s maritime security architecture given his vast experience in the industry.

The Maritime Guard Command domiciled in NIMASA was established as part of the resolutions of the Memorandum of Understanding (MoU) with the Nigerian Navy to assist NIMASA strengthen operational efficiency in Nigeria’s territorial waters, especially through enforcement of security, safety and other maritime regulations.

Customs

Customs collects N1.585 trillion from 51 compliant traders under AEO programme

Funso OLOJO, Editor

The Authorized Economic Operator (AEO), one of the trade facilitation tools introduced by the Nigeria Customs Service in 2025, has begun to yield bountiful harvests with the revenue growth of ₦362.79 billion recorded in 2025.

According to the AEO scorecard released by the Service, the facilitation tool grossed the sum of N1.585 trillion after certification, an increase revenue from N1.222 trillion before certification.

This represents the growth of N362.79 billion(29.68 per cent) for 51 AEO – certified entities as at October, 2025.

The Programme, according to the NCS, also contributed 21.77% to its total revenue collection of ₦7.281 trillion in 2025, while customs duties paid rose by 85.66% due to enhanced compliance and increased volumes of legitimate trade.

According to AEO Monitoring and Evaluation (M&E) Report, the Programme achieved an average compliance rate of 85.45 per cent with the highest at 100 per cent and the lowest at 60 per cent.

“The evaluation applied rigorous methodologies to ensure objectivity, transparency, and alignment with the World Customs Organisation (WCO) SAFE Framework of Standards and the provisions of the Nigeria Customs Service Act, 2023.

“In the area of trade facilitation, AEO participation reduced average cargo clearance time from 168 hours to 41 hours, representing a 75.60% time saving.

“Company operating costs declined by 57.2 per cent while demurrage payments dropped by 90 per cent, limiting capital flight to foreign-owned port service providers and strengthening foreign exchange retention.

” Overall trade efficiency improved by 77.11 per through digitalisation, simplified procedures, and targeted risk management” the Customs declared in the AEO scorecard.

However, the Service singled out with Eight companies for commendation due to their integrity and compliance under the programme.

The companies include Coleman Technical Industries Limited, WACOT Rice Limited, ROMSON Oil Field Services Ltd, WACOT Limited, Chi Farms Ltd, CORMART Nigeria Ltd, PZ Cussons Nigeria Plc, Nigerian Bottling Company Limited and MTN Nigeria Communications Plc.

The Service lauded them for a cumulative voluntary remittance of over a billion naira into the Federation Account following their self-initiated transaction review and disclosure.

“These actions reflect the strengthening of post-clearance audit mechanisms and a growing culture of voluntary compliance within the trading community.

Nevertheless, the Service suspended a firm under the programme for its non- compliance and display of lack of integrity.

The suspended firm engaged in false declaration of consignments contrary to programme obligations.

“Consequently, the Comptroller-General of Customs, Bashir Adewale Adeniyi, directed the immediate suspension of the company’s AEO status in accordance with the AEO Guidelines, the WCO SAFE Framework of Standards, and Section 112 of the Nigeria Customs Service Act, 2023.

The NCS reiterated that the AEO Programme is founded on trust, transparency, and continuous compliance.

“While compliant operators will continue to benefit from expedited clearance and reduced inspection, appropriate sanctions will be applied where violations are established.

“The Service remains resolute in safeguarding national revenue, facilitating legitimate trade, and preserving the integrity and global credibility of Nigeria’s AEO framework” the NCS concluded in the report.