The Nigerian Maritime Administration and Safety Agency (NIMASA) has accused foreign insurance companies otherwise known as Protection and Indemnity (P&I) clubs, of sabotaging Nigeria’s economy especially in the report of piracy activities in the sub-region.
The agency said that P&I clubs deliberately raise the red flag on vessel operating in sub-Sahara African region in other to milk them of more insurance money.
The Nigerian Maritime Administration and Safety Agency (NIMASA) has accused foreign insurance companies otherwise known as Protection and Indemnity (P&I) clubs, of sabotaging Nigeria’s economy especially in the report of piracy activities in the sub-region.
The agency said that P&I clubs deliberately raise the red flag on vessel operating in sub-Sahara African region in other to milk them of more insurance money.
Director General of NIMASA, Mr. Ziakede Patrick Akpobolokemi at an event in Lagos on Wednesday lamented that a lot of losses are being incurred through the marine insurance sector.
He said that most of the reported piracy attacks are untrue and a deliberate sabotage from foreign insurance companies.
Akpobolokemi observed that the P&I clubs have made so much out of Nigeria and other African countries, saying that there is need for Nigeria to have an equivalent of such in the country in order to make better gains.
“Virtually all the major insurances in this sector are done outside of Nigeria and this is a huge capital flight, we have a huge population and in the sub-saharan Africa, 69% of the cargo traffic is from Nigeria, and why is it that our insurance in regards to marine is so weak when we can make so much money"
"Sometimes you hear of piracy attacks, but most reported cases of piracy are untrue, it is because the insurance companies want to make money, and if they don't raise the red flag, how will they make the money? So they must paint our image as bad as possible to get those insurance money"
The NIMASA boss lamented that the situation is highly political and a form of sabotage, even as he urged operators to come together and have an equivalent in the country.
"If we cannot do it alone, all sub-saharan African countries should be able to come together to form one." he insisted.
According to him, since the Nigerian National Shipping Line (NNSL) got liquidated many years ago, it has made Nigerian flagged ships attractive.
He assured that the next area the agency wants to beam it's searchlight on is resurrecting Nigerian national carrier so that Nigerians should be able to be involved in the transportation of crude oil.
According to him, Nigeria is the only OPEC country that carries it's hydro-carbon on FOB basis. He said that this is a major blow to the economy especially in the area of job creation.
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