After Nigeria Delisted from Piracy Prone Country, Insurance Premium Reduces from $5000 to $945- Naval Boss

After Nigeria Delisted from Piracy Prone Country, Insurance Premium Reduces from $5000 to $945- Naval Boss

The Chief of Naval Staff, Vice Admiral Awwal Zubairu Gambo, has said the fabrication and construction of indigenous shipbuilding efforts of the service has enhanced the presence of personnel to provide adequate sea security within the nation’s maritime domain.

“This has relieved the insurance premium from 5,000 US Dollars to 946 US Dollars”, he said.

The CNS Gambo, disclosed this today at a Signing of Memorandum of Understanding with National Agency for science and Engineering Infrastructure, NASENI in Abuja.

Recall that Nigeria was delisted from the piracy prone countries by International Maritime Bureau, IBM in March, 2022.

The Naval boss said the effort has led to significant reduction of piracy incidents culminating into delisting Nigeria from list of International Maritime Bureau list of piracy prone countries.

According to Gambo, “this feats was  recorded from locally-made ship building which has ultimately reduced high insurance premium (known as war risk premium), which is usually factored into shipping cost due to the prevalence of piracy incidences.

“these high costs are passed on to consumers to enable shipping companies recoup their losses.”he added.

Speaking further, the Naval boss, said the MoU will promote mutual synergy towards enhancing research and development, improve security as well as fostering operations and administrative engagements for sustainable Blue Economy for Nigeria’s prosperity.

He applauded the Agency for collaborating with the Nigerian Navy especially in Research and Development, which he said, necessitated the visit to the Naval Dockyard Limited in Lagos, geared towards refining Nigerian Navy local ship construction efforts.

On his part, The Chief Executive of NASENI, Prof Mohammed Sani Haruna, said the MoU will be threshold in training the Naval personnel in the area of Technology and Engineering in ship  building  facility, research publication of spare parts components and, laboratory building among other equipment.

Haruna noted that the agreement will boost local content development that will enhance security in Nigeria.

By PRNigeria