AN APPRAISAL OF THE LEGAL AND INSTITUTIONAL FRAMEWORK OF MARITIME INSURANCE IN NIGERIA

Abstract

Maritime insurance is a crucial part of the maritime sector and, by extension, plays a significant role in supporting the Nigerian economy. This means that it serves as a protection for shipowners, importers, exporters, and other stakeholders and protects them from potential risks and losses that may occur during maritime activities. A functional marine insurance industry promotes confidence among participants and also acts as a financial engine that furthers economic development. Premiums generated from marine insurance policies contribute to the growth of Nigeria’s capital market, thereby reinforcing the financial structure of the maritime industry. Consequently, trade is stimulated, investor confidence is enhanced and general national economic advancement is encouraged. This article carried out a comprehensive review of the legal and institutional frameworks regulating maritime insurance in Nigeria. Using the doctrinal research method, this paper analyzed both the strengths and the weaknesses of these regulatory frameworks. The findings revealed that, despite the existence of fairly laudable legal structures, the industry is limited by challenges such as poor enforcement of the law, limited financial capacity, as well as a shortage of adequately trained professionals. This article recommended some solutions, including legislation of more modern and effective laws, initiatives to enhance capacity-building and more effective enforcement measures.