69 Nigerian Barge Firms Liquidate with N211.9bn Investment Lost Amid High Charges
Lagos, Nigeria – The Nigerian maritime sector is facing a severe crisis as 69 indigenous barge operators have been forced to liquidate their companies, resulting in the loss of over N211.9 billion in investments. This alarming development was revealed during the first Citizen/Stakeholders Engagement organized by the Federal Ministry of Marine and Blue Economy, held in Lagos on April 2, 2026.
Collapse of Indigenous Operators
According to the Barge Operators Association of Nigeria (BOAN), out of the 83 registered indigenous barge companies, only 14 remain active and are struggling to survive. The remaining 69 firms have ceased operations entirely, highlighting the dire state of the industry. The Financial Secretary and Director of Enforcement and Operations of BOAN, who spoke on condition of anonymity, clarified that only eight companies are currently operating actively, underscoring the rapid decline in local participation.
Root Causes of the Crisis
The collapse of these firms is attributed to a combination of factors that have created an unsustainable business environment. Key issues include:
- Multinational Dominance: Foreign companies control the bulk of cargo operations, sidelining local operators.
- Regulatory Bottlenecks: Excessive charges and tariffs imposed by agencies like the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), and terminal operators.
- High Entry Costs: Setting up a barge operation requires approximately N3 billion per operator, with initial licensing fees alone costing N50 million.
- Lack of Berthing Spaces: Indigenous operators face discrimination in port access, with foreigners receiving priority.
- Inadequate Financing: High bank interest rates and limited access to capital force many operators to rely on personal resources or exit the business.
Financial Burden on Operators
BOAN representatives detailed the exorbitant costs involved in barge operations. Beyond the N50 million license fee, operators must pay conservancy and tugboat fees totaling $3,000, along with expenses for piloted exemption certificates, tax clearance, Corporate Affairs Commission (CAC) registration, and audited accounts, bringing the total to around N70 million. Additional costs include N2 billion to N3 billion for a standard jetty and N1 million per day to rent cranes, making the business prohibitively expensive for most Nigerians.
Operational Inequities
The industry is plagued by operational inequalities that favor foreign companies. Local operators handling 30 to 40 containers are often overlooked in favor of foreign vessels with 400 containers, despite paying the same demurrage fees of N130,000 per day. This lack of dedicated berthing spaces and fair access to contracts has exacerbated the challenges faced by indigenous firms.
Economic Impact and Lost Opportunities
Dr. Eugene Nweke, Head of Research at the Sea Empowerment and Research Centre (SEREC), emphasized the untapped potential of the barge sector. He noted that inefficiencies in Nigeria’s logistics chain account for 20–30% of cargo value, while port-related delays cost the economy $7–$10 billion annually. Congestion across port corridors results in supply chain disruptions exceeding N500 billion each year.
Nweke described the barge sector as a "neglected N1 trillion opportunity," currently operating at only 30% of its capacity. At optimal levels, it could generate N500 billion to N1 trillion annually, reduce port congestion by 30–40%, cut cargo evacuation costs by 20–35%, and save over N200 billion yearly in road maintenance costs.
Calls for Reform
BOAN has urged the government to implement immediate reforms, including:
- Allocating dedicated berthing spaces for indigenous barges at APM Terminals in Apapa.
- Establishing a Directorate for Barge Operations within the Ministry of Marine and Blue Economy.
- Enforcing local content policies to ensure fair opportunities for Nigerian operators.
- Providing access to low-interest financing to support fleet expansion and terminal development.
Nweke also proposed the creation of a N500 billion National Barge Development Fund through a public-private partnership model, aiming to evacuate at least 50% of cargo via inland waterways within five years.
Government Response
In response to these concerns, the Minister of Marine and Blue Economy, Dr. Adegboyega Oyetola, directed the Nigerian Shippers’ Council (NSC) to investigate the issues and submit recommendations for ministry support. This move has been welcomed by stakeholders, who hope it will lead to tangible solutions.
Without swift intervention, Nigeria risks losing its remaining indigenous barge operators, undermining local participation in a sector critical to the country’s maritime economy and revenue generation. The call for reform is now more urgent than ever to salvage this vital industry.
