Cargo insurance for Nigerian imports: if the container is lost

Cargo insurance for Nigerian imports: local insurance rules, Clause A/B/C cover, Form M requirements, exclusions, claims and 2026 container changes.

If you import commercial goods into Nigeria, cargo insurance is not an optional extra you add after the supplier ships.

Nigeria requires imported goods to be insured through an insurer licensed in Nigeria, and the marine insurance certificate forms part of the e-Form M documentation.

That rule remains in the Nigerian Insurance Industry Reform Act 2025 — NIIRA, which kept compulsory local insurance for imported goods under Section 82.

The Central Bank also integrated the Nigerian digital marine insurance certificate directly into the e-Form M process.

So if a Chinese supplier tells you:

“Insurance is already included in the CIF price.”

that does not remove the Nigerian local-insurance requirement.

You still need the Nigerian certificate for the import process.

Why must an Nigerian import be insured locally? #

Because Nigerian law treats import insurance as Nigerian insurance business.

Under Section 82 of NIIRA 2025, insurance for goods imported into Nigeria must be placed with a locally licensed insurer.

This is not a new 2026 rule.

The previous Insurance Act already required imported goods to be insured with a Nigerian-registered insurer; NIIRA retained the principle while modernising and consolidating the insurance laws.

The practical result is simple.

For a normal commercial import you arrange marine cargo cover in Nigeria and obtain the electronic insurance certificate before completing the Form M process.

A foreign policy may still exist commercially between you and your supplier, but it does not replace the Nigerian certificate required in the local import process.

Our Form M guide explains where the certificate fits.

How much should the cargo be insured for? #

Do not confuse the premium with the amount insured.

The sum insured is the cargo value the policy protects.

The premium is the amount you pay the insurer for that protection.

Nigerian banks commonly require marine cover equal to 110% of the invoice value for import-trade processing. For example, Coronation Merchant Bank lists marine insurance covering 110% of invoice value for letters of credit and bills for collection, while Nigerian Form M guidance from banks also uses the 110% figure.

So if your invoice value is ₦20 million, the insured amount may be around ₦22 million.

But let your bank and insurer confirm the exact valuation basis for your transaction.

Do not simply type “CIF plus 10%” into every shipment because you saw it in an old blog.

What are Clause A, B and C? #

This is the part many first-time importers never ask about.

Marine cargo policies commonly use the Institute Cargo Clauses, usually A, B or C.

Those letters tell you how broad the cover is.

Clause C: basic cover #

Clause C is the narrowest.

It covers specified major events such as:

• fire or explosion;
• the vessel grounding, sinking or capsizing;
• overturning or derailment of a land conveyance;
• collision;
• discharge at a port of distress;
• general-average sacrifice;
• and jettison.

It is essentially protection against major transit casualties rather than every everyday way cargo can be damaged.

If a ship sinks, Clause C matters.

If individual cartons are crushed during normal handling, that is a different question.

What does Clause B add? #

Clause B is wider than C but is still a named-perils policy.

It adds risks such as:

• earthquake, volcanic eruption or lightning;
• washing overboard;
• sea, lake or river water entering a vessel, container or storage place;
• and total loss of a package dropped or lost overboard while loading or unloading from the vessel.

It still does not give you the broad protection of Clause A.

What does Clause A cover? #

Clause A is the broadest standard form.

It covers all risks of physical loss or damage unless the policy specifically excludes the cause.

For packaged consumer goods, electronics, hair products, fashion stock or other higher-value merchandise, this is often the wording an importer should at least ask the insurer to quote.

Clause A can respond to risks such as accidental handling damage, theft or other physical loss where no applicable exclusion blocks the claim.

But “all risks” does not mean “everything that can go wrong”.

Read the exclusions.

What is excluded even under Clause A? #

Several exclusions appear across the standard Institute Cargo Clauses.

Important ones include:

• deliberate misconduct by the insured;
• ordinary leakage;
• normal loss of weight or volume;
• normal wear and tear;
• inadequate or unsuitable packing;
• inherent vice or the natural characteristics of the goods;
• loss caused by delay;
• certain insolvency/default situations;
• and war and strike-related risks unless separately covered.

This matters because insurance is not a substitute for buying properly.

If a factory packs ceramic tiles badly and they break because the packaging was never suitable for international transport, the insurer may rely on the packing exclusion.

If food naturally deteriorates because it stayed too long in transit, delay and inherent-vice issues can arise.

If a cheap fabric fades because it was badly dyed before shipment, that is a quality problem—not necessarily a transit accident.

Our quality inspection guide explains why insurance and pre-shipment inspection solve different problems.

What about war, strikes and civil unrest? #

Ask.

The standard cargo clauses contain war and strike exclusions.

Separate Institute War and Institute Strikes cover can be added where required.

Do not assume your policy includes them simply because it says “Clause A”.

Ask the insurer to list the extensions on the quotation or certificate.

Does cargo insurance cover the road from Lagos to your warehouse? #

It depends on the policy's transit wording.

Some marine policies are written on a warehouse-to-warehouse basis and can extend beyond the sea voyage.

Others end at a defined point.

For domestic movement after the port, insurers also offer Goods in Transit insurance, which protects goods moving by road, rail or inland waterways within Nigeria.

So if your container clears in Apapa and then travels another 1,100 km to Kano, ask:

Where exactly does my marine policy stop?

Is the Apapa-to-Kano road leg insured?

If not, do I need Goods in Transit cover?

Our Lagos-to-Kano haulage guide covers the inland movement itself.

What changed under NIIRA 2025? #

The biggest marine-related change importers noticed was the container-deposit reform.

Section 203 of NIIRA 2025 introduced an insurance-based framework for containers moving from Nigerian ports and says users should not be required to provide the traditional cash deposit for container use.

The idea is straightforward.

Instead of an importer tying up hundreds of thousands of naira as security for a shipping line's container, an insurance product should protect the container owner against defined return or damage risks.

But there is an important 2026 reality.

Have container deposits actually disappeared? #

No—not completely.

This is where the original version would mislead a reader.

Although Section 203 created the new legal framework, maritime stakeholders said in August 2026 that the operational container-insurance framework had not yet fully commenced, with regulators still working on implementation arrangements.

And as recently as 23 September 2026, Nigerian maritime reporting said shipping lines were still collecting container deposits despite the NIIRA provision.

So do not budget a shipment on the assumption that:

“Container deposits were abolished, therefore my shipping line definitely cannot ask for one this week.”

The law has changed.

Operational practice is still catching up.

Ask your shipping line or clearing agent what is actually being charged on your vessel and route before the container arrives.

Is a container deposit the same as detention? #

No.

They are different.

A container deposit is security connected with the equipment.

Detention is generally a time-based charge when the shipping-line container remains outside the terminal beyond the allowed free period.

Replacing the deposit model with insurance does not automatically eliminate every detention charge.

Current 2026 maritime discussions still identify detention and empty-container-return problems as separate operational issues.

Do not allow anyone to tell you every container-related charge became illegal because NIIRA was passed.

Ask what the charge is called and what contractual or approved tariff basis supports it.

What should you check before buying cargo insurance? #

Ask the insurer or broker for these answers in writing:

1. Which Institute Cargo Clause applies?

A, B or C?

2. What is the sum insured?

Does it match what your bank and Form M require?

3. Where does cover start?

Supplier's factory? Chinese warehouse? Port?

4. Where does cover end?

Lagos port? Your warehouse? Another Nigerian city?

5. Is theft covered?

Do not assume.

6. Is water damage covered?

Check the clause.

7. Are war and strikes included?

If not, what does the extension cost?

8. What is the deductible?

This is the amount you bear before the insurer pays.

9. What packing conditions apply?

Important for glass, tiles, electronics and fragile goods.

10. What is the claim-notification deadline?

Save the claims telephone number and email before the goods leave China.

What should you do when damaged cargo arrives? #

Do not unload everything, sign every document as clean and call the insurer three weeks later.

The evidence begins at delivery.

The former Shippers' Council's cargo-claim procedure—which remains useful operational guidance—tells claimants to give immediate written notice to the insurer, insist on a joint survey, photograph the damaged cargo, provide the marine-certificate documents and make a claim against any negligent third party such as a shipping line, terminal or transporter.

A practical sequence is:

1. Record the damage before accepting the cargo as clean.
2. Photograph the container seal, doors, container number and damaged goods.
3. Notify the insurer immediately.
4. Ask whether a surveyor must inspect before anything is moved or disposed of.
5. Notify the carrier, terminal, forwarder or transporter if they may be responsible.
6. Keep every damaged item unless the surveyor authorises disposal.
7. Prepare the claim file.

Custodian's current marine claims guidance likewise starts with immediate notification and requires the claim form and supporting evidence.

What documents will the insurer normally ask for? #

The exact list depends on the loss, but expect documents such as:

• marine insurance certificate/policy;
• Bill of Lading or Air Waybill;
• commercial invoice;
• packing list;
• delivery documentation;
• photographs;
• survey report;
• correspondence with the carrier;
• evidence of shortage or damage;
• Customs or terminal documents where relevant;
• and the formal claim amount.

Keep the entire import file.

Do not throw away the packing list after Customs clears the goods.

Why is the survey so important? #

Because the insurer needs evidence of:

what was damaged,

how much was damaged,

when the damage existed,

and, where possible,

what probably caused it.

If 40 cartons of electronics are wet when the container opens, document them before the warehouse staff moves everything into separate rooms.

Once the evidence disappears, the argument gets harder.

Who do you complain to about a shipping or port dispute? #

Nigeria's port economic regulator changed in August 2026.

The former Nigerian Shippers' Council formally transitioned into the Nigeria Ports Economic Regulatory Agency — NPERA under the NPERA Act 2026. NPERA now handles areas including tariffs, charges, service standards and commercial dispute resolution at Nigerian ports.

The regulator is already handling cargo billing and detention disputes.

In one August 2026 case, its complaints team physically re-measured an LCL shipment after an importer disputed the CBM used for freight billing.

Keep your:

• quotations;
• bills;
• receipts;
• emails;
• WhatsApp messages;
• survey reports;
• Bills of Lading;
• and photographs.

Regulators can work much better with documents than with an importer saying:

“They cheated me.”

How much does marine cargo insurance cost? #

There is no reliable flat percentage I would publish for every Nigerian import.

The premium changes with:

• value of the cargo;
• type of goods;
• fragility;
• route;
• packing;
• claims history;
• Institute Cargo Clause;
• deductible;
• and extensions.

Current Nigerian insurers including Custodian, Heirs and NEM offer marine cargo products, but they generally ask for shipment details before giving the actual premium.

Get at least two quotations for a significant shipment.

Do not compare only price.

Compare:

Clause A/B/C + deductible + extensions + start/end of transit + insurer claims process.

A cheaper Clause C quote is not automatically cheaper insurance if the risk you actually care about is not covered.

Single shipment or annual cover? #

If you import occasionally, insurers can arrange cover for a specific voyage.

If you ship repeatedly throughout the year, ask about open cover or an annual arrangement.

Heirs, for example, currently markets both single-transit and open marine cargo covers for Nigerian importers.

For a business bringing containers every month, repeatedly buying standalone cover after each proforma invoice may not be the most efficient structure.

Ask your broker.

Where cargo insurance fits in the import process #

The correct order is roughly:

Supplier quotation → Form M preparation → Nigerian marine insurance → regulatory documents → shipment → PAAR/Customs process → arrival → clearance → inland delivery.

Do not wait for the Bill of Lading before asking whether you need insurance.

The digital marine certificate is already part of the Form M process.

And do not buy the certificate only because the bank demands one.

Read the coverage.

A certificate that opens Form M but leaves your actual cargo risk uncovered solves only half the problem.

The short answer #

For a Nigerian importer, marine cargo insurance does three different jobs.

It satisfies a legal and import-document requirement.

It protects the value of your cargo if an insured transit loss occurs.

And it gives you a formal claims route when a serious shipment goes wrong.

Buy it from a Nigerian-licensed insurer.

Confirm the insured value with your bank and insurer.

Ask whether your policy is Clause A, B or C.

Understand the exclusions.

Know exactly where the cover ends.

And save the claims procedure before the container leaves China.

Insurance is cheap only until the day you need it.

For the rest of the calculation, read landed cost from China to Nigeria, Form M for Nigerian importers, quality inspection in China and container haulage from Lagos.

First published 26 Sep 2026. Last checked 26 Sep 2026 by The ChinaBridge desk. Something here out of date? Tell us in the comments and we will fix it.