Nigerian consumers and importers are bracing for a potential surge in the cost of imported goods following alarming comments from former U.S. President Donald Trump, which industry stakeholders warn could significantly increase the country's risk profile and insurance premiums.
According to a report by The PUNCH, Trump's recent post on his Truth Social platform, where he claimed Christianity faced an "existential threat" in Nigeria and threatened a military response, has sparked serious concerns about its economic impact. This comes despite recent improvements in maritime security under the Nigerian Maritime Administration and Safety Agency (NIMASA).
Stakeholders fear that such statements from a major global figure could lead international insurers to hike War Risk Insurance (WRI) premiums on cargoes destined for Nigerian ports. This would directly increase the cost of doing business, a cost ultimately passed on to the average Nigerian.
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Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), stated that Trump has effectively "demarketed" Nigeria. “What he has done has created a major confidence challenge for people outside the country who want to do business,” Yusuf said in a telephone conversation. “This kind of statement will increase your country’s risk. If country risk goes up, insurance premiums will go up. And if insurance premiums go up, it will affect the cost now.”
This is a major concern given NIMASA's own revelation that importers paid a staggering $1.5 billion in WRI premiums over the last three years, even during a period of reduced piracy in the Gulf of Guinea.
A former Director-General of NIMASA, Temisan Omatseye, lamented that the comment creates an opportunity for exploitation. “I have constantly warned that the day someone like Donald Trump wakes up and decides that there is going to be an embargo on Nigeria... it would be disastrous,” Omatseye said. He reiterated that the WRI premium is currently “illegal because there’s no war in Nigeria. Our waters have been safe for God knows how many years.”
Echoing this sentiment, Mr. Gbolahan Adu, an Executive Partner at Alpha Insurance Broker, confirmed that Trump's remarks could directly impact the premiums Nigerian shipowners pay. The consensus among experts is clear: geopolitical rhetoric has tangible economic consequences, and Nigeria must work to control its narrative and shipping logistics to shield its economy from external shocks.
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