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By Steve Agbota
The Nigerian Shippers’ Council and the Nigerian Navy have condemned the continuous war risk insurance slammed on Nigeria-bound cargo by international insurance companies, especially when there has been no incidence of pirate attacks on the nation’s waters in the last three years.
The two government agencies said that the federal government has a better chance of ending the exploitation through international diplomacy.
This was stated by the Executive Secretary, Nigerian Shippers’ Council (NSC), Dr Pius Akutah and the Flag Officer Commanding Western Naval Command, Rear Admiral Abubakar Mustapha, during the command’s courtesy visit to the agency, said that the issue needs to be tackled holistically.
However, on the claims by shipping lines and shipping service providers that the presence of navy gunboats at Nigerian seaports proves that they are endangered, the naval chief said such claims could be a part of international conspiracies, adding that it behooves Nigeria to change the narrative.
According to him, the naval base was co-located with the Nigerian Ports Authority (NPA) before their separation, adding that the navy also has at least two capital ships in areas regarded as hotspots, which have ensured that there is no criminality in the safe or secure anchorage area.
“During patrol, the navy visits terminals, which he said the terminal officials welcome, adding that it is the number of reports at the International Maritime Bureau on the number of attacks on shipping that actually translates to insecurity) rather than merely seeing vessels.
“Yes, we need to have that posture, too, to deny criminal activities. Our presence shows that our navy is ready and able to protect our waterways, not that there is a problem translating to war insurance,” he explained.
He stated that there must be a full-blown war situation for the place to be at risk. He expressed concern with the Nigerian war insurance issue, noting that the same channel through which these ships patrol is the same channel through which the vessels go to Ghana, yet Ghana is not surcharged.
He said that the talk about freight rates and all of that is basically about politics, and that international politics is sometimes skewed against a particular country in that way.
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He further disclosed that under the European Arrangement called the Combined Might and Presence, there is a collaborative might and security as an international best practice to protect shipping.
“Therefore, we need to use our diplomatic skills to also change the narrative, tip it towards a positive outlook, de-risking our businesses in this country,” he said.
On his part, Akutah said that Nigeria has a duty to defend its policies and decisions, adding that some other countries also have navy ships patrolling their waters.
“Patrol is one critical element to defend your territorial waters. You can’t hide your ship somewhere waiting for a situation to arise before bringing it out. So, you can’t say that because you can cite a warship patrolling the waters, therefore you can tax the country for war risk and surcharge.
“These are political statements; it is a problem that the Minister of Marine and Blue Economy is working with all agencies and stakeholders to get out of. Whatever the political situation may be, we are working very strongly together to see how we can pull out of it,” he added.
However, he urged the navy’s continued partnership to enhance trade facilitation and improve trade activities in Nigeria, adding that, with Nigeria now under the African Free Continental Trade Area Agreement, the role of the navy is crucial as the country aims to double efforts to capture African markets and participate fully in its development.
Highlighting Nigeria’s zero piracy on its high seas for many years running, Akutah disclosed that efforts were ongoing towards delisting Nigeria from the war risk zone in order to reduce the cost of freight within the country’s trade corridor.
“Consequently, your coming here has opened new channels, and I guarantee that we take this partnership forward. Be assured of the Shippers’ Council’s collaboration on the Navy’s forthcoming 70th anniversary celebrations.
He further stressed the need to revive the existing committees on collaboration, stating that issues regarding efficiency in the sector are germane, and that this partnership could deal with that.
