Barge Operators Association of Nigeria has said that the major challenge confronting its members is the N50m bank bond slammed on them by the management of the Nigerian Ports Authority before they can be issued an operating licence.
The National President of BOAN, Olubunmi Olumekun, was quoted to have stated this on Wednesday in Apapa, Lagos when the association hosted some management staff of the Nigerian Shippers Council led by the Deputy Director of Inland Transport Services, Mr Nanbol Nanle.
He said the 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 stated that members of BOAN control more than 2,000 barges, with 13 crew onboard each of the barges.
The BOAN president said some government policies are killing the business in Nigeria stressing that good policies can drive an industry, while bad policies will destroy it.
According to him, the issue is not necessarily the revenue generation, but the way it’s done.
He said that the association has suggested improvements and even proposed legislation to fix these issues.
“For example, policies like the requirement for a N50m 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,” he lamented.
He stated that the association comprised 82 companies, many of which have several boats and tugboats, each employing numerous crew members.
Olumekun lamented the number of people and businesses affected by these policies adding that despite their efforts, the government has failed to listen.
“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,”
The BOAN president mentioned that the group had spoken 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,”
“This would help decongest the ports and create a more efficient system.
The current situation is unsustainable. We need policies that will help save the business and make things easier for everyone involved” he said.
He said that due to these charges and other unfriendly policies of the Federal Government, many indigenous barge operators have given up on the profession and are venturing into other businesses.
Earlier, the Deputy Director of Inland Transport Services at the NSC, Mr Nanbol Nanle, noted that the agency the barge operators need to be closely related to is the council.
“When you mention high charges, it’s clear that these issues are a barrier. We need to address these challenges to make inland transport and barge operations more efficient and to reduce congestion,” he said.
According to him, the engagement is just the beginning, adding that the agency would collaborate with NPA to address some of these challenges.
“We plan to further discuss these issues and will need a list of the challenges and document them so that we can present them to the CEO. Our goal is to address these concerns through formal meetings and ongoing discussions.
“We have recently held meetings with the Nigerian Railway Corporation and the Federal Road Safety Corps to discuss cargo movement and safety. Now, we need to address inland waterways and barge operations,” he said.
Nanle added that the NSC is committed to pushing for improvements, “although some challenges may be beyond our immediate control. Political will and executive determination are essential for meaningful progress,”
“We are aware of the significant cargo loss to neighboring ports and the need for improvements in our ports,” he assured.
Meanwhile, an attempt to get a reaction from NPA was not successful as the acting General Manager of Corporate and Strategic Communications of NPA, Mrs Sarah Ballah, didn’t pick up her calls at the time of filling this report.
