Despite a clean record of zero piracy attacks in Nigerian waters over the last three years, shipowners continue to pay as much as $8,000 daily for private security escort services—a cost maritime stakeholders say is unsustainable and out of tune with current realities.
This revelation follows a recent statement by the Minister of Marine and Blue Economy, Adegboyega Oyetola, who affirmed that Nigeria had recorded no piracy incidents in its maritime domain since 2022. Speaking during a recent stakeholders’ engagement in Lagos, Oyetola credited the improvement to enhanced naval patrols and maritime surveillance systems like the Deep Blue Project.
However, industry experts say the financial burden on shipowners has remained unchanged, with many still required to contract private security escort vessels—often staffed with military personnel—before they are allowed to navigate Nigerian waters.
According to Capt. Jide Olguwa, Deputy National President of the Nigerian Association of Master Mariners, this entrenched security practice costs shipowners between $5,000 and $8,000 daily, irrespective of Nigeria’s improved maritime security statistics.
“Hiring a private escort vessel with armed military personnel is now seen as mandatory, even in territorial waters under the jurisdiction of the Nigerian Navy,” Olguwa said. “This is not just unnecessary under the current security landscape, but also economically damaging for vessel operators who already pay other maritime charges.”
He emphasized that the continued dependence on private escorts is a legacy issue stemming from the peak of piracy incidents and called on the federal government to re-evaluate the security protocols within Nigerian waters.
> “We cannot claim that our waters are safe while still enforcing practices that suggest otherwise,” Olguwa added.
Supporting this view, shipowner Mr. Ayorinde Adedoyin noted that the practice of contracting security vessels has been in place since as far back as 2005–2006, particularly to safeguard cargo and crew. He acknowledged that the practice persists even in the absence of immediate threats.
“There are several private firms offering these escort services, and although it started during the peak of piracy threats, it’s unfortunate that the arrangement still exists without review,” Adedoyin said.
Maritime research group Sea Empowerment and Research Centre (SEREC) echoed these sentiments, noting that while there’s no official documentation of daily security escort costs, shipowners remain best placed to validate the claims.
In a statement signed by Head of Research, Eugene Nweke, SEREC said that although war risk insurance premiums and insecurity charges have historically influenced logistics costs, reforms such as the Deep Blue Project and improved naval coordination should logically lower the cost of operations.
“The Lagos Secure Anchorage Zone charge of $2,500 was removed after criticism, yet insecurity-related costs remain embedded in the logistics framework. These costs are transferred to consumers and increase the price of imports,” Nweke said.
He urged shipowners to come forward and engage policymakers in reworking the security cost structure in light of current realities.
This development comes months after The PUNCH reported that Nigeria-bound cargoes attracted over $1.5 billion in war risk insurance (WRI) payments over three years, despite a sharp drop in piracy incidents in the Gulf of Guinea. Maritime operators have since called for Nigeria’s removal from the global maritime war risk list.
The Nigerian Maritime Administration and Safety Agency (NIMASA) had earlier confirmed that most of the WRI payments were made to foreign insurance giants such as Lloyd’s of London and P&I Clubs, despite improved safety metrics in Nigerian waters.
Industry observers argue that while the government has improved security, regulatory inertia and outdated contracts continue to drain maritime resources. The call now is for the Ministry of Marine and Blue Economy, NIMASA, and the Nigerian Navy to harmonize efforts toward declaring Nigerian waters not just safe in reports, but also in terms of cost structure and shipowner experience.
As global maritime trade rebounds and Nigeria positions its Blue Economy for growth, stakeholders insist that addressing unjustifiable security costs is critical to attracting more vessels and boosting investor confidence in the nation’s ports.
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