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Barge Operators Rake In N2trn From 4m Container Movements

Despite outcry over illegal incursions, barge operators have earned N2 trillion from four million import and export container shipments. It was learnt that it costs 500,000 to lift a container by barge to its destination within Nigerian waters.

While the operators complain that foreigners are dislodging them from the business with their superior vessels, the Barge Operators Association of Nigeria (BOAN) said that it mobilised four million of 20-feet equivalent containers from imports and exports between 2019 and 2024.

The President of the association, Mr. Olabunmi Olumekun, said in Lagos that the association had no fewer than 82 companies with about 2,000 barges and tugboats operating at the Nigerian waterways.

According to him, BOAN has recorded tremendous progress since 2019 from both imports, exports, and other cargo entries. He explained: “The association consists of companies, not individuals. We have no fewer than 82 companies in the association, with about 2,000 barges and tugboats operating on the water.

Each barge employs at least 13 crew members, contributing significantly to job creation.” Olumekun urged for the Federal Government to review some of its policies, adding that existing policies posed serious challenges to their operations.

According to him, some operators have decided to quit the barging sector over unfavourable government policies are threathing 26,000 jobs. Olumekun said: “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 have 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 Olumekun, in terms of employment generation, the members of the association controlled more than 2,000 barges, with 13 crew onboard each of the barges.

He explained that the group formed an association as a way of regulating their members to ensure safety on the waterways. He said: “The association consists of companies, not individuals.

We have no fewer than 82 companies in the association, with about 2,000 barges and tugboats operating on the water. Each barge employs at least 13 crew members, contributing significantly to job creation.

“We have a lot of quacks in the industry who do not know the industry. They just feel that the barge business brings money; they just jump into business without consulting, without knowing the roots of that business.”

Also, the Director of Compliance for BOAN, General Sanni Saheed, lamented that the charges by terminal operators had severely impacting the profits of barge operators, making it difficult for them to stay afloat.

He noted that apart from paying N50 million NPA registration, NPA requires operators to pay N80,000 for movement clearance on each voyage, stressing that terminal operators collect N170,000 per unit with another terminal charges.

Recall that the Nigerian Ports Authority (NPA) had issued new licences to 24 barge operators to enable them participate in the N500 billion freight business.

Annually, about one million containers are ferried by barges on Nigerian waters to off dock terminals as it cost between N400,000 and N500, 000 to ferry a container through the Lagos waterways.

According to NPA’s Executive Director, Engineering and Technical Services, Ibrahim Abba Umar, the authority chairs the barge licence committee. He listed other agencies as Nigerian Maritime Administration and Safety Agency (NIMASA) and National Inland Waterways Authority (NIWA).

He noted that in 2024 alone, out of the 40 applications received by the authority, 24 licences were given and 15 ready for collection, adding that nine licences had been collected.

Also, the authority has established some guidelines and regulations that will enable NPA and Barge Operators Association of Nigeria (BOAN) to clamp down on illegal barge operators using sub-standard vessels to lift cargoes as well as some of the operators, who have been operating outside the rules of engagement.

In addition, it has established a joint task force drawn from NIMASA, NIWA and BOAN for safety of barge operations on Nigerian waters and to create opportunities for genuine operators.

In its guidelines, NPA said that barge operators must obtain Certificate of Registry (CoR) from NIMASA and Certificate of Registration from NIWA, noting that operators must obtain insurance certificate and valid NPA Pilot Exemption Certificate (PEC) before they can be permitted to ferry containers to off dock terminals.

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