Delisting of Nigeria from Piracy Prone Countries has Reduced Risk Premium Paid By Ships to $946 from $5,000 – Vice Admiral AZ Gambo; As Navy Signs MoU with NASENI in Abuja

Chief of the Naval Staff, Vice Admiral Awwal Zubairu Gambo has disclosed that with the delisting of Nigeria from the list of piracy prone countries by the International Maritime Bureau (IMB), as a result of improved security of the maritime domain by the Nigerian Navy, insurance premium paid by ships coming into Nigeria to do business has been reduced from $5,000 to $946 dollar
Pledging that, “this feat would be sustained by the Nigerian Navy”, Admiral Gambo said, “This has ultimately reduced high insurance premium (known as war risk premium), which is usually factored into shipping cost due to the prevalence of piracy incidences.  These high costs are subsequently passed on to consumers to enable shipping companies recoup their losses”.
The CNS spoke during the signing of a memorandum of understanding (MoU) between the Nigerian Navy and National Agency for Science and Engineering Infrastructure (NASENI) at Naval headquarters, Abuja.
Gambo applauded the efforts of the Agency in collaborating with the Nigerian Navy especially in Research and Development, which necessitated the visit to the Naval Dockyard Limited in Lagos, geared towards refining Nigerian Navy local ship construction efforts.
He said, “This indigenous shipbuilding effort has enhanced presence of the Nigerian Navy at sea, which led to significant reduction of piracy incidents culminating into delisting Nigeria from list of International Maritime Bureau list of piracy prone countries.
“The good news is that sequel to delisting Nigeria from the IMB List of Piracy prone countries in March last year; the insurance premium has been reduced from 5,000 US Dollars to 946 US Dollars.
“I am therefore elated not just that we are here to witness signing of this Memorandum of Understanding but also for what it represents. NASENI’s tremendous efforts, which is changing the dynamics of engineering as well as facilitating Research and Development initiatives at every sector of human endeavour in our great nation and beyond, which is outstanding and commendable”.
Continuing the CNS said, “This Memorandum of Understanding is not just a piece of paper.  It re-ignites partnership between both organizations in several ways, including but not limited to promoting mutual synergy towards enhancing Research and Development for enhanced security as well as fostering operations and administrative engagements that would enhance development of sustainable Blue Economy for Nigeria’s prosperity”.
He appreciated the sustained efforts and support from the Federal Government, which have been instrumental to the successes recorded by the Nigerian Navy adding, “I therefore consider it most appropriate to again thank President Muhammadu Buhari, for his unflinching support, who coincidentally is the Executive Chairman Board of NASENI.  The Nigerian Navy is indeed very grateful”.
“I wish to also appreciate the Technical Committee that facilitated this occasion and to again salute the courage of the Executive Vice Chairman of NASENI,, Prof. Muhammad Haruna and his management team. I wish to assure you that the Nigerian Navy is well positioned to meet up with the terms of this unprecedented Memorandum of Understanding and I look forward to a mutually beneficial partnership.  I therefore implore both parties to be committed towards attainment of the objectives of the Memorandum of Understanding for the good of Nigeria and benefit of Nigerians”.
In his remarks, Prof. Haruna described the signing ceremony as historic noting that the working partnership between the Navy and NASENI has actually commenced with Wednesday’s ceremony just a formalization of the relationship.
He disclosed that the most important component of the MoU is the effort geared towards saving the country from expending huge foreign exchange in procuring equipment and capacity in technology as well as developing capacity of the Nigerian Navy to improve security architecture in the nation’s maritime domain.
He commended the Navy for its achievement so far in the area of research and development noting that during his visit to the Nigerian Navy Dockyard in Lagos, he was hugely impressed with capacity of Nigerian Naval engineers in the area of ship building and ship repairs.
Earlier, the Chief of Naval Engineering (CONE), Rear Admiral Sulaiman El-Ladan said the MOU seeks to harmonize Nigerian Navy’s capacity, to utilize available manpower of both organizations to take ownership and utilize technology in ship building and associated areas.
He said, “Article 5 of the MoU states that parties shall constitute joint implementation committee with the aim to drive development in the maritime sector; NASENI shall facilitate science and engineering research; and NASENI shall also provide funding where necessary to ensure manpower capacity and infrastructure development in the area of design and construction for fishing vessels as well as oil tankers”.
He said the MoU will be operational for a minimum of 5 years in the first instance after which it will be expanded in future.
The CONE added that within the 5 years duration period, “Up to 100 personnel of the Nigerian Navy, according to the MoU are expected to be get capacity training in electronics, engineering designs and computer technology disciplines”
Present at the ceremony were the Chief of Policy and Plans, Nigerian Navy, Rear Admiral Saidu Garba and other Principal Staff Officers at Naval headquarters.

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