The Barge Operators Association of Nigeria (BOAN) has called for urgent policy reforms to address regulatory and financial impediments that are crippling the industry and forcing operators out of business.
The BOAN President, Olubunmi Olumekun, lamented that despite its 82 member companies moving four million Twenty-foot Equivalent Units (TEUs) of cargo across Nigeria’s waterways yearly, restrictive government policies are stifling the sector’s growth.
Olumekun lamented that the N50 million yearly cash bond required by the Nigerian Ports Authority (NPA) for licensing barge operators is making barge operations expensive.
He noted that removing these financial obstacles could make barge transportation at least 50 per cent cheaper, given its capacity to move large volumes of cargo efficiently.
Olumekun criticised the NPA’s cash bond policy, explaining that the funds remain idle in bank accounts for a year, unlike the globally accepted insurance bonds, which are cheaper and more efficient.
Adopting insurance bonds, he argued, would reduce operational costs and attract more operators to the sector. Olumekun compared the cost of barge transportation to road transport, revealing that moving cargo by road from Lagos Port to Oshodi-Isolo costs approximately N200,000, while barge operations can cost between N500,000 and N600,000 due to excessive charges from terminal operators and government agencies.
According to Olumekun, the association’s members collectively operate over 2,000 barges and tugboats, facilitating imports, exports, and other cargo shipments, which positions barge operations as a crucial component of Nigeria’s maritime logistics system.
He also highlighted the industry’s contributions to job creation, noting that each barge employs a minimum of 13 crew members, significantly boosting employment in the maritime sector and supporting economic growth.
Highlighting the benefits of waterway transportation, Olumekun noted that barges ensure timely and safe cargo delivery, avoiding road-related delays and risks such as short shipments.
He emphasised that barges deliver all containers simultaneously, noting that even if a tugboat develops a fault, it can be replaced without disrupting operations, which is an advantage not offered by road transport.Olumekun criticised the government’s disproportionate investment in road infrastructure at the expense of waterways, calling for a balanced approach.
He advocated allocating a percentage of cargo movement to waterways to reduce road congestion and lower long-term costs. He also reminded stakeholders that barge operations are not new in Nigeria, citing their effective use in the 1960s and 1970s, while urging the government to revisit and enhance these practices rather than focusing solely on road transport.
According to Olumekun, reforms in the sector are critical to unlocking the full potential of barge transportation and fostering sustainable growth in Nigeria’s maritime industry.
