Nigeria Among Eight Gulf of Guinea Countries Confronting Piracy Challenges
Nigeria is one of the eight countries situated in the Gulf of Guinea (GoG), along with Benin, Côte d’Ivoire, Ghana, Guinea, Liberia, Sierra Leone, and Togo. The Gulf of Guinea encompasses the northeastern part of the tropical Atlantic Ocean, extending from Cape Lopez in Gabon to Cape Palmas in Liberia, with a Regional Office based in Abidjan.
Over the years, this region has been plagued by a persistent issue of piracy. Incidents involve the hijacking of vessels, kidnapping of crew members for ransom, and theft of crude oil and other valuable cargo.
Dr. Eugene Nweke, a maritime expert and former President of the National Association of Government Approved Freight Forwarders, voiced these concerns during the inaugural annual lecture of the Maritime Reporters Association of Nigeria (MARAN), titled “Maritime Security: Emerging Threats and Actionable Steps.”
Nweke attributed the surge in criminal activities in the Gulf of Guinea to the abundant offshore oil deposits and metal ore resources, including cobalt crusts and poly-metallic nodules containing nickel, cobalt, copper, and manganese. Other valuable resources in the region include polymetallic sulfides (containing zinc, silver, copper, and gold), monazite sand (with significant uranium content), as well as deposits of diamond, gold, and phosphorus.
The Gulf of Guinea (GoG) is recognized as one of the world’s crucial shipping routes due to its abundant resources, facilitating Gulf of Guinea oil exports from the Niger Delta and the transportation of consumer goods to and from Central and Southern Africa. The waters of the Gulf witness approximately 1,500 fishing vessels, tankers, and cargo ships daily.
Piracy and armed robbery incidents in the GoG reached a peak in 2020, with 123 reported cases. Notably, pirates began targeting ships to kidnap crews for ransom in recent years. However, there has been a significant reduction in such incidents, with 45 reported in 2021 and only two in 2022. Remarkably, Nigeria recorded zero piracy incidents in 2022.
The International Maritime Bureau’s Piracy Reporting Centre (IMB PRC) reported a 46% decrease in piracy incidents in 2022 compared to 2021 and a fourfold reduction compared to 2020. The IMB attributed this decline to various factors, including the impact of piracy convictions in Nigeria and Togo in July 2021, increased naval patrols by Nigeria, deployment of international Navies to the region, and enhanced cooperation among Gulf of Guinea countries.
As of the first quarter of 2023, the trend of decreasing pirate and armed robbery incidents in the GoG has continued. Five incidents were reported in this period, a decrease from eight in the first quarter of 2022 and 16 in 2021, according to the latest IMB report.
Captain Warredi Enisuoh, a Maritime Security expert from Tantitan Security Services, highlighted in his presentation at the MARAN Annual Lecture that the decline in criminal activities in the Gulf of Guinea (GoG) can be attributed to measures taken by some foreign ship owners to safeguard their vessels.
He specifically mentioned that American and Israeli-flagged ships can transform into warships within one hour in response to potential threats or actual attacks. This approach has been adopted by other countries as well.
The notable success in reducing security threats in Nigeria’s maritime domain has resulted in a substantial decrease in insurance premiums for ships operating in Nigerian-controlled waters. This positive development followed Nigeria’s removal from the International Maritime Bureau’s (IMB) list of piracy-prone countries in March 2022, leading to the removal of the War Risk Premium designation in Nigeria.
As a result, insurance premiums for ships in Nigerian-controlled waters dropped significantly, down to around $960 compared to the previous $5,000 per shipment.
However, the recent surge in reported incidents of pirate attacks in the Gulf of Guinea raises concerns that the reduction in War Risk insurance premiums might be reversed due to current trends in the region. The increase in pirate activities could potentially impact the risk assessment and insurance costs for ships operating in the Gulf of Guinea.
The latest report from the International Maritime Bureau (IMB) covering January-September 2023, released in October, reveals an increase in piracy and armed robbery incidents compared to the same period in 2022. According to the report, there were 99 reported incidents, up from 90 in 2022, which included 85 vessels being boarded, nine attempted attacks, three hijackings, and two cases of ships being fired upon.
Despite noting that violence towards crew members is at its lowest in three decades, the report emphasizes that the risk to the crew remains substantial. Of the reported incidents, 69 crew members were taken hostage, 14 were kidnapped, eight faced threats, three were injured, and one was assaulted.
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IMB Director Micheal Howlett expressed concern about the Gulf of Guinea, stating, “The Gulf of Guinea stands as a region of concern with a rise in reported incidents, as opposed to the downward trend we have seen in the past two years.” The potential for increased War Risk insurance premiums, especially for Nigeria, raises economic concerns.
Any rise in insurance costs could be passed on to citizens, exacerbating inflation, which is already at 27.33 percent, and contributing to potential economic challenges for Nigerians.
