Nigeria’s Barge Operators Call for Policy Reform Amid Job Creation Milestone

The Barge Operators Association of Nigeria (BOAN) has reported significant achievements since 2019, employing 26,000 people and facilitating the movement of over four million twenty-foot equivalent containers across Nigeria’s waterways. This milestone, announced by BOAN President Olubunmi Olumekun, positions barge transport as a pivotal force within Nigeria’s maritime logistics, handling a diverse range of imports, exports, and other cargo.

In a discussion with journalists in Lagos on Monday, Olumekun emphasised the need for policy reforms to address regulatory hurdles impeding the sector’s growth. BOAN, which comprises 82 member companies operating more than 2,000 barges and tugboats, has generated substantial employment, with each barge employing at least 13 crew members.

“From 2019 to date, BOAN has facilitated the movement of over four million TEUs,” Olumekun said. “With 2,000 barges in operation, employing a minimum of 13 crew members each, we’ve employed at least 26,000 people over the last five years.” This achievement, he noted, demonstrates the potential of barge operations to drive employment and economic progress.

However, restrictive policies pose a significant barrier. One key issue, Olumekun explained, is the Nigerian Ports Authority’s annual N50 million cash bond for licensing barge operators. “The cash bond sits idle in a bank account for a year, while insurance bonds used globally are more cost-effective and efficient. Switching to insurance bonds would lower costs and attract new operators,” he argued.

BOAN has introduced strict measures to ensure accountability, assigning each barge a unique ID number for traceability. Yet unregulated operators continue to cause safety issues due to their lack of expertise. Stronger regulatory oversight, Olumekun asserted, is crucial.

On cost comparison, Olumekun acknowledged that barge transport is currently more expensive than road haulage, mainly due to high charges from terminal operators and government agencies. He contended that if financial obstacles were lifted, barge transport could be 50% cheaper than road alternatives, offering greater efficiency in moving large cargo volumes.

Olumekun highlighted the reliability of barges, noting that waterways avoid road-related delays and provide safe, unified cargo delivery. “With a barge, all containers arrive together,” he said. “Even if a tugboat has an issue, it can be replaced without disrupting operations—a reliability trucks can’t match.”

The BOAN president urged the government to focus on fostering waterway transport rather than exclusively supporting road infrastructure. Barge transportation, he argued, provides a vital alternative for moving Nigeria’s cargo across rivers and canals, promising significant economic and logistical benefits.