War Risk Insurance – NIMASA expresses optimism

In June we reported that NIMASA had requested the international maritime community to remove, or reduce, war risk insurance on Nigeria bound cargos.

This week, the Director General of NIMASA, Dr. Bashir Jamoh, met with the Executive Secretary of the Nigerian Shippers’ Council (NSC), Hon. Emmanuel Jime, and stated that he believed the continued reduction in maritime incidents seen over the last few months should lead to the removal of the insurance premiums and in an official statement following the meeting he noted that “…the sharp decrease in maritime incidents logged in IMB’s second quarter report was a valuable feedback on the NIMASA’s campaign for Nigeria’s delisting from countries under the war risk insurance burden”.

With the initial statement on the subject from NIMASA in June, Lloyds List released a response soon after stating that there were currently no plans to amend this premium and at this time we await further international response to this latest statement from the DG of NIMASA.

Worth note is while the DG referred to the IMB Q2 report for 2021 piracy showing a decline in incidents compared to 2020, Q2-Q3 have historically shown a lower rate of incidents in Nigeria due to natural factors such as weather conditions etc. and thus the international community may well need to see evidence of a decline in piracy in Nigeria for at least the next 6 months before considering any re-classification.

The removal of this insurance would obviously have huge benefits to everyone involved in the maritime trade in Nigeria (according to the non-profit Oceans Beyond Piracy’s 2020 report, the total cost of additional war risk area premiums incurred by Nigeria-bound ships transiting the Gulf was $55.5m in 2020 alone.), however any removal will likely only be predicated upon a corresponding drop in the risk of pirate attack.  We will continue to monitor for further updates.

You can read more on the meeting and statement here – NIMASA anticipates end to War Risk Insurance

 

Automating Nigeria’s Ports – #AreteNews

There are several challenges affecting maritime trade in Nigeria. One major issue is congested ports which leads to delays and costs millions of naira in wasted time and long delivery times.

In an interview with This Day Business, the Acting Managing Director of Nigerian Ports Authority (NPA), Mohammed Bello Koko, spoke about the plan to automate the ports better using the Eto, an electronic truck call-up system that was deployed in February 2021 by the Nigeria Ports Authority (NPA).

On the Eto system, having experimented with a manual truck scheduling arrangement for over a year, the authority has introduced an electronic truck call-up system in February to streamline truck movements and eliminate traffic congestion in and around the port area. The system is to be rolled out in Lagos where Nigeria’s two busiest ports are situated and will effectively see all trucks doing business at the port in Lagos required to park at approved truck parks until they are called up into the port through an app called Eto.

The Eto application is for the scheduling, entry, and exit of cargo trucks into the port, and truck companies, terminal operators, and freight agents will be required to download the app, and then proceed to create an account to monitor the schedule and movement of their trucks.

You can read more about it here – “Full Automation of Ports is our Goal” 

At Arete, we provide risk management services to companies operating offshore, inshore and onshore.  These services include embarking Risk Management Consultants (RMCs) on clients’ principal vessels and platforms offshore. Send an email to info@arete-group.com

COVID: Nigeria High Commission in London shut down

The Nigeria High Commission in London has shut down its operation for 10 days after two of its officials tested positive for Covid-19. This closure means all visa processing is now suspended until further notice. However, BVN processing continues. 

One of the officials returned positive after the test was administered on him when he went for a meeting at the Home office.

As a result, the Mission embarked on testing all officials after which another official tested positive.

While regretting any inconvenience the shutdown of operations might cause, the Mission in a statement said the move is to check the spread by ensuring that those who were in contact with the affected persons observe the mandatory isolation.

It reads, “This afternoon the Head of Immigration Section and two other officials went for a meeting at the Home Office.

“At the entrance, Covid test was administered on them and one of them tested positive to Covid-19. The affected officer immediately isolated while the other officials, who tested negative will also isolate for the next 10 days.

“In response to the challenge, the Mission embarked on testing all officials of the Mission, after which another official of the Mission tested positive.

“In line with Covid-19 regulation and the need to adhere to the rules and regulation of the host country, the Mission will close down for the next 10 days, in order to observe the mandatory isolation of those who were in contact with the affected officials.

“While the High Commission regrets any inconvenience that this may have caused, we solicit the cooperation of the general public.”

Please email us at info@areteafrica.com for any assistance you may need with travel planning in the coming weeks and months. We will continue to monitor the situation and provide further information on visa processing activities as they become available.

Link to the full Vanguard article here

 

US Navy Vessel Arrives in Lagos

On Saturday, August 7, 2021, the US Navy vessel USS Hershel “Woody” Williams arrived in Nigeria’s commercial capital city of Lagos.

The vessel is part of the U.S. government’s support to help combat piracy in the Gulf of Guinea.

The Captain of the ship Captain Chad Graham had this to say – “We’re here to train and work with the Nigerian Navy on anti-piracy, tactics, techniques, and procedures.”

You can read more here – https://www.bloomberg.com/news/articles/2021-08-07/u-s-navy-ship-arrives-in-nigeria-to-back-anti-piracy-push/

At Arete, we are constantly monitoring the maritime space to provide you with the latest updates and services. You can click here to get in touch with us.

Nigeria Quits MOWCA

News broke yesterday that Nigeria has pulled out of the Maritime Organization for West and Central Africa (MOWCA). The Nigerian contingent alleged that there was a disregard for the rules of procedure regarding the suitability of candidates nominated for the position of the Secretary-General of the organisation.

While there have been reports that the country pulled out after losing the elections, in a statement signed by Eric Ojiekwe, Director of Press, Federal Ministry of Transportation, the representatives for Nigeria said: “It is sad and most depressing given Nigeria’s ardent and consistent support for MOWCA and its activities, that Nigeria as a nation must take a stand against the promotion of illegality, disrespect for the rule of law and contravention of the rules regarding the election of the Secretary General of MOWCA.

“Nigeria draws the attention of the General Assembly to the comment of MOWCA as presented by MOWCA secretariat in the annotated Agenda circulated this week to the Committee of Experts meeting, which confirmed that Nigeria is the only country that met the age eligibility criteria that candidates must not exceed 55 years.

“The candidate nominated by Nigeria was 55 years as at when nominations closed in 2020, while the candidate of Guinea was 60 years old and that of Benin was 62 years old.”

You can read more here

At Arete, we are constantly monitoring the maritime space to provide you with the latest updates and services. You can click here to get in touch with us.

Arresting Nnamdi Kanu; Solution or Catalyst?

The arrest, detention and extradition of the titular head of the Independent People of Biafra (IPOB), Nnamdi Kanu, has focussed the minds of Nigerians, and to a lesser extent the international community on the issue of partition in Nigeria.  The arrest was allegedly carried out by Kenyan security operatives at the behest of the Nigerian government.  He was subsequently flown on a private jet to Abuja where he was taken into detention by the Department of State Security.  Kanu has been characterised as a terrorist by the Nigerian Government and remains in detention in Nigeria.

Since his trial was delayed on 26 July, the flow of rhetoric from his supporters has increased in volume and its tone has become more threatening.  Kanu’s status as a British citizen has also drawn the UK High Commission into the issue.  A large UK law firm has also been commissioned to represent him as it has been alleged that his removal from Kenya to Nigeria amounts to an extraordinary rendition, which is illegal under British law, the protection of which Kanu enjoys.

Ndigbo commentators have been busy, with the Association of South-East Towns Union (ASETU) issuing a long statement on 27 July to the effect that the arrest and detention of Kanu will not address the driver behind the movement for independence as Kanu is only a representative of the anger felt by the Ndigbo.  It claims that the Ndigbo people are discriminated against, and the discrimination has deepened under the present government.  The following day, another statement was issued by a Kuwait based spokesperson for the IPOB calling on the Federal Government to released Kanu immediately without further charge.  It gave a deadline of 08 August, following which, if Kanu remains in detention, the South-East political region of Nigeria will face a total shutdown every Monday from 06:00 am until 18:00 pm with effect from 09 August until such time as Kanu is released.

Street-level chatter among ordinary Igbo people is somewhat more ambiguous, with popular opinion seemingly divided.  Many feel that Kanu is a troublemaker who has brought an unwelcome surge of security forces activity into their homeland.  They point out the impact that has on personal freedoms and the ability to trade in the established manner.  Some feel that he is nothing more than a gangster who is seeking to empower himself.  Others, however, are vociferously supportive of Kanu and the secessionist aims of IPOB.

In the short term, it is likely that the shut-down protests will happen and be largely supported, albeit reluctantly in many cases.  People must earn money to feed and educate their children and any regular or protracted interruption to commerce will divide opinion quite quickly.  There is likely to be an increase in the activity of the so-called ‘unknown gunmen’, which will see security forces, and police stations, in particular, being targeted.  This could trigger a very strong reaction from the security forces, leading to further recriminations among the chatterati and an increase in support for IPOB.

The knock-on effects for business are likely to be indirect.  However, workers being absent from their positions on Mondays will also have an impact on most commercial operations.  Additionally, the heavy presence of security forces will likely render movement on the region’s roads more challenging and time-consuming, with an attendant risk of travellers being caught up in attacks on security forces.

In the long term, it is certain that the arrest, detention and trial of Kanu will not force IPOB to disband and abandon its ambitions.  If anything, it is likely that the movement will gain strength and support, with international attention becoming more focussed on those centrifugal forces that are also driving separatist movements in other parts of the country.

9 Pirates and the first of a kind trial in West Africa

In a revolutionary court ruling on Monday this week (5th July), a Togo court convicted and sentenced nine individuals to between 12 and 20 years in jail for maritime piracy. The incident took place in 2019, when the pirates boarded a small tanker, robbing the crew before being apprehended by the Togo Navy.

What does this landmark ruling mean for West African maritime security? How might it make the waters safer?

The conviction and associated custodial sentences of 9 pirates in a Togo court this week was a true milestone in the fight against piracy in the Gulf of Guinea region. The incident, which occurred on 11 May 2019 and saw the tanker G Dona 1 boarded, temporarily hijacked and robbed, has been well documented. This analysis will concentrate on the background to the court case and its overall impact on the region.

The case comes in the wake of changes to the Togolese Penal Code which in 2015 was amended to include acts of piracy at sea. The pirates, which included seven Nigerians, two Togolese and a Ghanaian, were arrested in 2019. The prosecution was brought by the present government – elected only last year – in what was possibly a strategic political message to highlight its credentials and intent with regards to countering crime both ashore and at sea.

Perhaps the most prominent aspect of the prosecution is that it happened in a country that hitherto has lacked any regional prominence in comparison to its neighbours such as Nigeria and Ghana. That the Togolese Navy managed to apprehend the perpetrators of the crime and bring them to justice is a clear example of what can be achieved if regional navies respond rapidly to intelligence and emerging situations. It has set a new benchmark for naval and coastguard operations, and it now behooves the better-resourced navies of other nations to emulate the performance of the tiny Togolese Navy.

Impact on Regional Piracy?

There are numerous maritime security arrangements and agreements in place in the region, including the declaration in early June 2021 signed by hundreds of international shipping companies, maritime organisations, and maritime service providers (See our 07 June Deep Dive – The Gulf of Guinea Declaration on Suppression of Piracy here). Most recently, on 11 July 2021, the Nigerian and Ghanaian navies agreed to integrate their intelligence and surveillance efforts, as well as develop personnel in the use of those systems, and also agreed to adopt a set of joint Standard Operating Procedures that would be adopted by both navies.

This intended collaboration between the two most powerful navies in the region should, if implemented diligently and efficiently, generate a positive impact and drive down incident rates – at least in coastal waters. There have also been numerous equipment procurement programs in several GoG nations, but all these efforts and good intentions have thus far failed to generate any significant lowering of risk to shipping and mariners in the region. The pirates have evolved and shifted their operations into deep water, thus avoiding the systems and procedures adopted by the littoral states, which have been designed to counter maritime criminal activity in territorial waters.

This case represents a paradigm shift though, as it has seen hefty sentences handed down to criminals who would expect only short jail terms at most in other regional states. The other key aspect of the case is that the group’s leader, a Nigerian going by the name of Peter Paul, was sentenced to 15 years in jail. Typically, in Nigeria – which is widely seen as the epicentre of pirate activity in the region – the top men in such cases escape custodial sentences and the junior members of the gang receive short prison terms. The length of the sentences handed down by the Togolese court will almost certainly have surprised the pirate gangs and their prominent backers in Nigeria.

It is possible that smaller countries such as Benin, Equatorial Guinea and Gabon will take note of the steadfast position adopted by the Togolese courts leading to potentially meaningful sentences being handed down by these State’s courts in the future.

Of the other regional powers, Cameroon has already successfully previously defeated a wave of piracy thought to have originated from Nigerian waters. Their response to that wave was highly kinetic and most pirate gangs that entered Cameroonian waters met their end when confronted by the Battalion d’Intervention Rapide (BIR). That past approach has meant that very few acts of piracy have occurred in Cameroonian waters since and it is likely they will continue to adopt such strategies in the future.

Like Togo, Ghana went through an election last year and its current government is determined to improve its security both onshore and at sea. It is likely therefore that we will see a robust response in the event that any maritime criminals or pirates are caught by Ghanaian security forces in the near future.

Ivory Coast is also stabilising after years of political uncertainty and social unrest; however, it is too early to say whether the Ivorian government will have the time or the will to address the problem of piracy in its Exclusive Economic Zone (EEZ).

This leaves the major economy and largest populated state in the region – Nigeria. President Buhari officially launched the Deep Blue Project to counter piracy in mid-June, which is hoped, and expected, to have a significant impact on improving security in Nigerian waters (See our comments on the Deep Blue Project launch 10th June here). Hopes and expectations aside, with the insurgency continuing in the north-east of the country, the enduring problem of Biafran secession bubbling away in the South and the emerging threat of a similar movement in Yorubaland, the government has duelling security priorities at present.

Nevertheless, even in the event that the Nigerian Navy and the newly launched Deep Blue Project have an immediate effect leading to prison cells full of detained pirates, there remains a huge question mark over the reliability and robustness of the Nigerian judicial system to undertake follow through action.

The above aside, and looking to the future, it is hoped the region will see more successful prosecutions of pirates as other regional states up their game in the face of the demonstration of capability and intent by the Togolese courts. As usual there will need to be a degree of both local (peer) pressure, as well international pressure, involved to ensure the economic protection of all states in the region from the scourge of regional piracy.

You can read the full article on the sentencing here

 

Travel Update: South African Arrivals into Nigeria

Last week the Nigerian Presidential Steering Committee on COVID-19 announced that it was updating the provisional quarantine protocol and entry requirements for travellers arriving into Nigeria from South Africa from 2nd July 2021.

In the images below we have highlighted the vital points of this communique and will continue to update with any changes.

Please email us at info@arete-group.com for any assistance you may need with travel planning in the coming weeks and months #AreteSOS

Lloyd’s Market Association on War Risk Insurance

Following our post yesterday on war risk insurance, the following response has been issued by Lloyd’s Market Association. Read here

Day of the Seafarer

June 25th is observed as the Day of the Seafarer. Amidst the pandemic, Seafarers have found themselves both on the front line of the global response and subject to difficult working conditions surrounding uncertainties and difficulties around port-access, re-supply, crew changeovers, repatriation etc. #FairFuture4Seafarers.
The 2021 campaign is Fair Future for Seafarers. The celebration is focused on urging governments to recognize seafarers as key workers and ease travel restrictions for them to facilitate crew changes.

The campaign will discuss issues that will still be relevant to seafarers after the pandemic #FairFuture4Seafarers.
The IMO Secretary-General Kitack Lim said in his address celebrating the day – “Seafarers have gone beyond the call of duty working tirelessly to keep global trade flowing. IMO & our partners are doing our part to support seafarers and make sure that they are given rights and protection of key workers.”

At Arete, we want to use this opportunity to encourage governments and IMO to support seafarers amid the pandemic and we hope for a Fair Future for Seafarers. #FairFuture4Seafarers