A maritime lawyer, Emeka Akabogu has asked the Nigerian Maritime Administration and Safety Agency (NIMASA), to be committed in its determination to change Nigeria trade terms from Free-on-Board(FOB) to Cost-Insurance and Freights (CIF)
Recall that the Director-General of NIMASA, Dr Dakuku Peterside had expressed the agency readiness to change the trade terms from Free-on-board (FOB) to Cost-Insurance and Freights (CIF)
According to the DG who spoke at a recent event in Lagos , "We are in talks with the Central Bank of Nigeria; we want to change the terms of trade from FOB to CIF but how many persons are prepared for this regime? If we get NNPC to change the terms of trade and we are getting the support of the Presidency"
But Akabogu last week disclosed on the sideline of a Brunch Seminar on Marine Insurance, Recoveries, Subrogation and Compulsory Cover organised in Lagos that changing Nigeria Trade terms will help rediscover Nigeria insurance industries.
He said, "NIMASA changing Nigeria Freight trade from FOB To CIF will help if they are committed to it and not paying lip service."
Akabogu further stated that insurance companies in Nigeria have capacity to underwrite marine insurance which experts believe is capital intensive.
Irrespective of the type of insurance we are talking about I believe we have insurance companies that can underwrite for a vessel on a voyage, Hull of a vessel or underwriting the cargo onboard a vessel.
An insurance company need not solely underwrite a policy but at times an insurance company work with reinsurance companies and reinsurance could be local or foreign reinsrance what the companies need is appetite when there is appetite, they will be able to undertake any volume of risk as far as it is highly place and taken through business review section.
"There are underwriters across the world who are looking for such risk so the local insurance take such risk, involve the reinsurance and they would cover adequately," he stated.
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