Barge Operators Association of Nigeria (BOAN) are worried over the rate at which some operators are quiting the sector over unfavourable government policies.

The development is currently threatening the sector with over 26,000 jobs. Also, they noted that foreigners had taken advantage of the situation to dislodge indigenous operators due to lack of capital to acquire new vessels.

According to the National President of BOAN, Olubunmi Olumekun, in terms of employment generation, members of the association control more than 2,000 barges, with 13 crew onboard each of the barges.

Olumekun explained to the Nigerian Shippers’ Council (NSC)’s Deputy Director, Inland Transport Services Department, Mr Nanbol Nanle, during a visit that the major challenge confronting barge operations in Nigeria was the N50 million registration fee slammed on the practitioners by the Nigerian Ports Authority (NPA).

The NSC team was at the association’s head office to find out the challenges confronting the operators in breaking-even in their business.

However, Olumekun said that due to NPA’s charges and other unfriendly policies of the Federal Government, many indigenous barge operators had given up on the profession and were venturing into other businesses, noting that foreigners had taken over the badging business.

According to him, BOAN as an association has contributed immensely to the growth of the Nigerian maritime sector, especially as regards cargo evacuation from the ports and transportation of export cargoes.

Olumekun said: “The truth is, some government policies are killing the business. Good policies can drive an industry, while bad policies will destroy it.

The issue isn’t necessarily the revenue generation, but the way it’s done. Revenue is essential for the nation, but it has to be balanced to promote growth. “We have about 82 companies in this association, many of which have several boats and tugboats, each employing numerous crew members.

You can see the sheer number of people and businesses affected by these policies. But despite our efforts, the government hasn’t heeded our calls. “We have suggested improvements and even proposed legislation to fix these issues.

For example, policies like the requirement for a N50 million bond just to get a license are crippling. In more advanced countries, they use insurance bonds, not cash. But here, we have to lock down millions in a bank, doing nothing for an entire year.

If that money were invested in the business, it would make a huge difference. “We’ve talked to the government, proposing solutions such as making the movement of export cargo and empty containers more efficient. If that happens, we can move containers quickly and reduce the number of trucks congesting the roads.”

According to the national president, this will help decongest the ports and create a more efficient system, adding that the current situation was unsustainable. Olumekun stressed that BOAN needed policies that would help save the business and make things easier for everyone involved.

Also, the Director of Finance of BOAN, Hajia Bola Muse, stressed the need for NPA to take a cue from the Nigeria Customs Service (NCS) in registration of its licenses, saying that the imposition of the N50 million bank bond by NPA had prevented many barge operators from registration of their businesses.

She noted: “I believe that barge operators could be the solution to many challenges we face in the maritime industry, especially with the issues we encounter on the roads while transporting goods to the port. The key takeaway here is that as barge operators, we need the assistance and collaboration of the Shippers Council.

“My President has already highlighted a pressing issue— the N50 million bond that the NPA has imposed on us. I believe that when it comes to obtaining a Nigerian customs license, there was a time when Customs required a bank cheque, but after negotiations, they reduced it to an insurance bond, which we proposed to the NPA.

However, this N50 million bond is still a major hindrance for many of our members. “Submitting an application to process the bond and license with the NPA is incredibly costly.

This is one of the main barriers preventing our members from registering and obtaining their licences. “Meanwhile, we are seeing many foreigners take over our business activities because they have the financial means to do so.

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