The Sea and Empowerment Research Center (SEREC) has said that Nigeria has continued to pay approximately $500 million annually in War Risk Insurance premiums to international insurers , a cost that has totaled over $1.5 billion in the past three years.
According to the SEREC Head of Research,Fwr Eugene Nweke , this has raised fresh concerns over the financial strain the figure places on the Nigerian economy, even as piracy and other maritime threats have sharply declined.
SEREC pointed out that while the $500 million yearly payment is a confirmed outflow, some earlier projections suggesting Nigeria could save up to $400 billion annually from eliminating these premiums may have been overestimated or misunderstood, as they do not directly reflect current expenditure levels.
However, SEREC stressed that the annual premium burden remains significant and calls for urgent reevaluation by global insurers, especially given Nigeria’s improved maritime security profile and the Nigerian Maritime Administration and Safety Agency (NIMASA) has been actively campaigning for the removal of the War Risk Insurance designation on Nigerian waters, arguing that continued classification as a high-risk zone is outdated and unjustified.
The research center also commended NIMASA’s efforts, urging continued engagement with international underwriters to adjust Nigeria’s risk rating and reduce or eliminate the premium costs. According to the center , funds currently drained by these premiums could be better channeled into infrastructure, education, or economic development initiatives.
