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Nigerian shipping costs up 60pc as pirate attack rate tops the world
PIRATE attacks, involving kidnapping from ships, have made Nigerian waters a war-risk zone with insurance costs rising 60 per cent, reports BusinessDay of Lagos.
Today, Nigeria dominates world piracy with 16 crew kidnapped from chemical and product tankers in four separate incidents. Ten attacks were reported off Nigeria alone.
Globally, the International Chamber of Commerce (ICC) first quarter piracy and armed robbery rates have declined 31 per cent year on year to 37 incidents. But Nigerian waters account for two out of three of these - and all of the 28 kidnapped hostages.
"Nigeria is categorised as a war-risk zone. Our insurance is more than three times the insurance of every other place in the world," said Nigerian Shipowners Association president Aminu Umar.
"The incidence has been on the rise, especially on kidnapping of the crew, which is making the shipping business very difficult. No crew of any vessel wants to go to the Niger Delta," he said.
"Apart from the insurance cost, the charges of the shipowners that are bringing the goods to Nigeria are 50-60 per cent more than what has been paid any other place in the world. The cost is very high, especially now with the kidnap situation," Mr Umar said.
The cost of every vessel coming into Nigeria is far higher than the cost of vessels calling at Benin, Ghana, Togo, Lome or Cameroon because ships that call at any of these countries do not pay war-risk insurance, kidnap and ransom insurance or high-risk zone bonuses to crew.
Michelle Sison, US deputy representative to the United Nations at the UN Security Council at the Open Debate on Peace Consolidation in West Africa, put Nigeria's loss to piracy, armed robbery at sea, smuggling and fuel supply fraud at US$1.5 billion monthly.
Shipowners lament that despite the annual sea protection levy paid to the Nigerian Maritime Administration and Safety Agency (NIMASA) to ensure that every ship that comes to the country is protected, attacks are still on the increase.
Said NIMASA director general Dakuku Peterside: "We are partnering with the Nigerian Navy and Air Force to patrol our waterways and enhance surveillance on our waterways.
"In addition, we are promoting and sponsoring an anti-piracy bill before the National Assembly, where we think we can deal with key issues like prosecution and other things that we have noticed that seem to be a gap in prosecuting pirates."
Mr Peterside also said the agency had deployed better surveillance system and had synchronised its surveillance patrol with that of Navy, Air Force and other relevant agencies.
"We have increased our domain awareness to put an eye on what goes on the oceans and seas. I believe that piracy will soon be history," he said.
Today, Nigeria dominates world piracy with 16 crew kidnapped from chemical and product tankers in four separate incidents. Ten attacks were reported off Nigeria alone.
Globally, the International Chamber of Commerce (ICC) first quarter piracy and armed robbery rates have declined 31 per cent year on year to 37 incidents. But Nigerian waters account for two out of three of these - and all of the 28 kidnapped hostages.
"Nigeria is categorised as a war-risk zone. Our insurance is more than three times the insurance of every other place in the world," said Nigerian Shipowners Association president Aminu Umar.
"The incidence has been on the rise, especially on kidnapping of the crew, which is making the shipping business very difficult. No crew of any vessel wants to go to the Niger Delta," he said.
"Apart from the insurance cost, the charges of the shipowners that are bringing the goods to Nigeria are 50-60 per cent more than what has been paid any other place in the world. The cost is very high, especially now with the kidnap situation," Mr Umar said.
The cost of every vessel coming into Nigeria is far higher than the cost of vessels calling at Benin, Ghana, Togo, Lome or Cameroon because ships that call at any of these countries do not pay war-risk insurance, kidnap and ransom insurance or high-risk zone bonuses to crew.
Michelle Sison, US deputy representative to the United Nations at the UN Security Council at the Open Debate on Peace Consolidation in West Africa, put Nigeria's loss to piracy, armed robbery at sea, smuggling and fuel supply fraud at US$1.5 billion monthly.
Shipowners lament that despite the annual sea protection levy paid to the Nigerian Maritime Administration and Safety Agency (NIMASA) to ensure that every ship that comes to the country is protected, attacks are still on the increase.
Said NIMASA director general Dakuku Peterside: "We are partnering with the Nigerian Navy and Air Force to patrol our waterways and enhance surveillance on our waterways.
"In addition, we are promoting and sponsoring an anti-piracy bill before the National Assembly, where we think we can deal with key issues like prosecution and other things that we have noticed that seem to be a gap in prosecuting pirates."
Mr Peterside also said the agency had deployed better surveillance system and had synchronised its surveillance patrol with that of Navy, Air Force and other relevant agencies.
"We have increased our domain awareness to put an eye on what goes on the oceans and seas. I believe that piracy will soon be history," he said.
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