Nigeria’s new marine insurance regime could ease the financial burden on importers by replacing traditional container deposit requirements with insurance-backed protection, but industry experts say the reform will only work if insurers develop the capacity to underwrite the risks.
The conclusions were met at the Nigeria Marine Insurance Forum 2026 Virtual Summit organised by Akabogu & Associates, following the enactment of the Nigeria Insurance Industry Reform Act 2025 (NIIRA 2025).
The traditional container deposit system requires importers to provide shipping lines with security against the loss or damage of containers, tying up funds that could otherwise be deployed in their businesses and often generating disputes over refunds and deductions.
Victor Onyegbado, partner at Akabogu & Associates, said the new framework provides an opportunity to address weaknesses in Nigeria’s container insurance regime, particularly as cargo increasingly moves through multiple modes of transport.
“Nigeria seems to be focused only on shipping risks, even though insurance cover is expanded to other modes of carriage,” he said.
Under the emerging insurance-based approach, protection is expected to extend beyond the vessel to cover risks associated with the movement of cargo through ports, trucks, warehouses and other stages of the logistics chain.
However, participants at the forum warned that replacing deposits with insurance would not automatically reduce costs for importers if insurers lack the capacity to provide affordable and effective cover.
They also identified container detention, empty-container returns, port congestion and truck turnaround times as operational issues that could continue to generate disputes even under the new regime.
Emeka Akabogu, senior partner at Akabogu & Associates, said NIIRA 2025 represents implications for risk allocation, domestic underwriting capacity and multimodal cargo operations.
He argued that Nigeria needs to develop a stronger domestic insurance market capable of retaining a larger share of maritime risks and premiums currently placed offshore.
The forum also noted Nigeria’s limited participation in the global Protection and Indemnity (P&I) insurance market despite the size of its maritime and offshore economy.
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Akabogu & Associates said the implementation of NIIRA 2025 would require greater awareness of the law, investment in domestic underwriting capacity, enforcement of its provisions and the development of standardised insurance products.
The law provides for measures aimed at strengthening local capacity, including a training levy under Section 216 and provisions relating to the establishment of a Nigerian P&I club under Section 200.
Stakeholders also called for judicial clarification of provisions covering offshore insurance placement and import insurance requirements, while advocating digital insurance infrastructure and greater regional cooperation.
The reform comes as Nigeria seeks to deepen local participation in maritime and logistics services, with marine insurance identified as one of the areas where significant value is still placed outside the country.
Bethel Olujobi reports on trade and maritime business for BusinessDay with prior experience reporting on migration, labour, and tech. He holds a Bachelor's degree in Mass Communication from the University of Jos, and is certified by the FT, Reuters and Google. Drawing from his experience working with other respected news providers, he presents a nuanced and informed perspective on the complexities of critical matters. He is based in Lagos, Nigeria and occasionally commutes to Abuja.
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