Connect with us

Headlines

NPA, Shippers’ Council on collision course over dollarisation of barge operations

Bello-Koko, Jime, the two gladiators

The Eyewitness Reporter

The age-long rivalry between the Nigerian Ports Authority(NPA) and the Nigerian Shippers’ Council seems far from being over as the two sister government agencies are set to collide over the dollarisation of barge operations in the country.

The NPA around 2018 and 2019, introduced barge operations as one of its multi-prong approach measures to tackle congestion of port access roads due to the excessive use of road transportation to evacuate cargo from the port.

The agency, therefore, licensed interested business interests to operate barge operations that will be used to evacuate cargo from the ports through the inland waterways, thereby taking pressure from the overstretched ports.

However, the barge operators, have cried out that the NPA is stifling their business with charges in dollars and a huge deposit of N50 million as a prerequisite for registration.

Nura Musa Wagani, the Director of Operations and Enforcement, Barge Operators Association of Nigeria(BOAN) cried out that the NPA’s suffocating tariff regime is gradually killing the barge operation business.

At the one-day breakfast meeting convened by the Maritime Reporters Association of Nigeria(MARAN) held Thursday, July 6th, 2023 to discuss the challenges of decaying port infrastructure in the country, Musa accused the NPA of charging the barge operators in dollars.

”Our regulators are the ones that licensed us as barge operators. We operate on the inland waterways. The barge operations are indigenous businesses run by Nigerians and operated on inland waterways which belongs to Nigeria. But our biggest shock is that our regulator charges us in dollars.

”How can we, as Nigerians, operating in Nigeria with Naira, and our regulator is charging us in Dollars? The tariff regime of the NPA is not sustainable. We are dying gradually. To barge one empty container, it cost us N265,000.

”If we have to pay this cost on the empty container, what about the laden one? The tariff regime of NPA is not doable and we need to review this tariff because it is not sustainable.

”Before the NPA licenses you as a barge operator, you must deposit the sum of N50m and if you don’t have patronage from your clients, how would you survive?

”Because of the high cost of barging as a result of high charges and tariffs from the NPA, nobody wants to operate the barges.” the operator lamented.

The Executive Secretary of the Nigerian Shippers Council, Emmanual Jime, who was in attendance with other dignitaries from the NPA, and the shipping community, expressed shock at the revelation and expressly declared that dollarisation of barge operations is alien to the Nigerian Constitution.

Jime, who superintendent the Council which is the economic regulator in the maritime industry, declared that the NPA as a service provider, is under its statutory regulatory powers.

”The Nigerian laws that the Nigerian Shippers Council as an economic regulator has been mandated to implement, do not recognise

the denomination of landside charges in dollars. Where this is happening, that is completely inconsistent with the laws of this country and I can say that authoritatively” the Shippers Council boss declared unequivocally.

He lamented the conflict of interests and clash of functions existing among government agencies in the maritime industry which he blamed on the weak regulatory framework that he said has created the gap.

”The Nigerian Shippers Council has been given the mandate to regulate the providers of services. On that list, NPA is the number one service provider that the Shippers Council has been mandated to regulate.

”If there are areas that appear there is a sort of breach, we have a duty to seat together with the management of NPA and point out these areas to them where their action is inconsistent with the laws of the land.

”As I said, there are some challenges where the weaker regulation has caused a sort of conflict among the agencies of government whereby they give one agency power with the right hand and they take it away with the left hand. These are the conflicts that are needed to be resolved.

”So we keep working on these areas of conflict and negotiating in a bid to resolve the issues”

He however asked the complaining barge operators to make a formal request to the Council so the agency can interfere with the NPA with a view to resolving the issue.

”I will also urge the barge operators to bring this complaint up formally with the Shippers Council because, to the best of my knowledge, that information is not available to us.

”Now that I have been made aware, we are going to activate our internal processes to examine this situation with a view to addressing it frontally. But I want to assure you that as far as landside charges are concerned, they cannot and they should not be denominated in dollars”, Jime reiterated.

However, the NPA put up a robust defence against the allegation of the barge operators, explaining that the agency does not impose any tariff but only made provision for varying sums of money ranging from N50m, N150m and N250m by the barge operators as a prerequisite for registration which serves as a guarantee against any mishaps caused by the barge operators in the channels.

Explaining the role of the NPA in barge operations, Mr. Ayo Durowaiye, General Manager in the office of the Managing Director of the NPA, declared that the money used as the bond belongs to the operators and it sits in their accounts, saying their problem is because they could not access it.

”The NPA introduced barging operations around 2018 and 2019 to remove pressure on our ports. It was one of the interventionist methods adopted by the NPA then to decongest the port access roads and the ports.

”NPA licensed them without charging a fee. NPA does not charge barge operators any fee for licensing.

”What we have in place is a bond requirement. The bond requirement of N50m if you are operating within the Lagos pilotage district, N150m if you are operating outside the Lagos pilotage district, and then N250m if you are operating across the borders.

”It is actually a bond and it is their money which is secured in the bank. It is financial security in the event that there is an accident in which the operator may not have the capacity to remedy the situation. For instance, if a barge goes down and the operator does not have the capacity to refloat it and you know the implication on the channel.

”So your bond is used to refloat it as quickly as possible to ensure safe navigation.

”So this bond they are complaining about is their money, it is in their accounts but their grouse is that they don’t have access to it.

”We do this to ensure that while the barge operators do their business around the channels, other users of the channels are protected.

”The members of the barge associations are aware of the challenges their operations are causing in the channels.

”As for the charges they complained about, the Shippers Council ES has promised to take it up with the top management of the NPA where all the issues raised will be resolved” Durowaiye declared.

He however warned the the barge operators to be mindful of their allegations so that they will not scare away other intending operators that may want to come into the business.

Barrister Temi Omatseye, the former Director General of the Nigerian Maritime Administration and Safety Agency(NIMASA) condemned the dollarisation of barge operations which he described as a cabotage trade.

”I have a problem with the dollarisation of barge operation because it is a cabotage trade. What the operators should pay is the 2 percent charge to NIMASA as provided for under the Cabotage law.

He said the only charge to which the NPA is entitled is the use of their quay apron by the operators which he said should be charged in naira.

Omatseye also frowned at the bond requirement which he said is no longer applicable in international trade. He said that what the NPA should do is ask the operators for insurance from reputable insurance companies that will underwrite any risks which the NPA is wary of.

Olubunmi Olumekun, the President of BOAN said that they have held several meetings with the NPA where they even suggested bulk insurance that will cover all the operators, the goods on board, and the owners of the goods.

He also said that the operators are the ones responsible for clearing the channels of wrecks to ensure their own safe passage.

He berated the NPA for holding on to their N50 million in a bank when the operators are cash-strapped.

”You can’t tie our N50m in the bank, no, it is unfair. We need that money. We badly need it” the BOAN President pleaded with a pain-lading voice.

The repressed animosity between the NPA and the Shippers Council dated back to when the Federal government was shopping for an economic regulator to supervise the economic activities of the terminal operators and the shipping companies at the dawn of port concession in 2006.

Both the NPA and the Shippers Council have engaged in a fierce battle to clinch the position but the federal government eventually settled for the Shippers’ council, since the NPA is already a technical regulator.

The loss of the juicy postion has since then embittered the NPA which has been allegedly trying to frustrate the regulatory function of the shippers’ council.

It could be recalled that Emmanuel Jime has similarly accused the NPA of an attempt to frustrate the reintroduction of the Cargo Tracking Note.

Jime, in a no-hold-barred speech at the Appreciation night organised by the League of Maritime Editors in honor of the immediate Minister of Transportation, Alhaji Muazu Jaji Sambo and his Minister of State, Barrister Ademola Adegoroye, had declared that it was the intervention of the former Minister which eventually restored the CTN back on track.

 

 

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Headlines

NSC flaunts achievements at ministerial retreat for agencies heads in maritime industry 

–– saves FG N31 billion within six months in 2024
— pushes for quick passage of Nigerian Port Regulatory Agency Bill
Funso OLOJO 
The Nigerian Shippers’ Council(NSC) has showcased its achievements during this year’s ministerial retreat in Abuja.
Addressing the gathering which comprised the Minister of Marine and Blue economy Adegboyega Oyetola, Permanent Secretary of the ministry, Olufemi Oloruntola and heads of maritime agencies and other dignitaries, the Executive Secretary of the Country, Pius Akutah disclosed that the agency has saved the Federal government a whooping sum of N31 billion  between January and June 2024 through automation of demurrage, freight rate, and charter party verification.
Akutah , who  called for critical policy and funding reforms, highlighted some of the achievements of the Council which include but not limited to commissioning of the Funtua Inland Dry Port, top-ranking performance in the 2024 ICPC Ethics and Integrity Scorecard, the launch of online registration portals for port users and service providers and the development of the Trade and Transport Data Bank now nearing completion.
He emphasized the need for swift passage of the Nigerian Port Regulatory Agency Bill and consistent access to statutory funding.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, who declared the retreat open, stated that the Marine and Blue Economy sector had been placed at the forefront of the Federal Government growth agenda and that agencies must respond with measurable performance and improved service delivery.
The Minister also noted several milestones achievements over the year, such as modernization of port infrastructure, steady improvement in port efficiency, progress on the National Single Window, commencement of Cabotage Vessel Financing Fund disbursement, noting that the recent approval of the National Policy on Marine and Blue Economy, marked a new phase in the sectorial development.
He outlined key imperatives for sectoral transformation, including inter-agency synergy, digitalization, governance, and environmental responsibility.
As the retreat progresses, agency heads are signing performance bonds anchored on specific Key Performance Indicators (KPIs), reinforcing a shared commitment to measurable results and transparency.
Continue Reading

Headlines

Opeifa decries incessant attacks on railway facilities by vandals

— enjoins host communities to regard infrastructures as national assets
Funso OLOJO 
The Managing Director of the Nigerian Railway Corporation, Dr. Kayode Opeifa,
has decried the rate at which NRC facilities are being attacked by criminal elements.
 Dr. Opeifa was reacting to two separate vandalism attacks on the Warri Itakpe line and another attack at Oghaho Section, Nkanu East LGA, Enugu State in the Eastern District.
At the Warri Itakpe line, if not for the quick response of the NRC management, the line would have suffered another suspension of operations.
Following a report from the community vigilante group of track vandalism at Agbarho Community, Ughelli North LGA of Delta State, the Railway track and safety officers were quickly dispatched to verify the report and do the needful for safe passage of the train.
Arriving at the site, the men discovered that from km 250 Agbarho – Okpara Section had been vandalized and the hold down bolts and clips made away with by the hoodlums.
The Railway crew promptly replaced all that were vandalized and the track has been confirmed safe for the passage of trains.
Because of that unfortunate incident, WITS 01 of 12th May 2025 experienced a 40 minutes delay in departure.
In another sad development, this time around, in the Eastern District of the Corporation, following a reported case of vandalization by PTO (HO) of two spans on bridge No.24 at KM284 (Oghaho section) Nkanu East LGA, Enugu State, Eastern District, a team of Railway Policemen and engineering crew were despatched from Enugu to the site on Monday, May 12th, 2025 on an assessment and security watch.
On getting to the site, the men discovered that a whole length of (Bridge 24) heavy frames were cut into pieces by the criminals, using oxygen and escetelen.
While the vandals had fled, the long spans bridge beams were met on ground and efforts are being made to recover them.
According to the reports from officers in charge of the area, the location is largely inaccessible due to long history of insecurity and banditry which had made most communities along this rail corridor to relocate.
While commending the effort of the security agencies so far in stopping this economic sabotage, Opeifa encouraged them to redouble efforts as his administration is ever ready to support them in dealing with the challenging task of securing railway facilities across the country.
He specifically thanked the Agbarho Community Vigilante Group for having an eye on the NRC track.
The NRC boss therefore called on other communities to emulate the Agbarho Community Vigilante and begin to own Railway facilities in their communities as they are national assets.
Continue Reading

Headlines

Oyetola gives marching order to NIMASA, NPA,NSC,NIWA to translate policy on Marine and Blue Economy into actionable programmes 

Funso OLOJO 
The Minister of Marine and Blue Economy, Adegboyega Oyetola, has given a marching order to the heads of agencies in the maritime industry to  study, internalize and digest the tenets of the recently approved national policy on marine and blue economy with the purpose of translating the policy into actionable programmes.
Oyetola made this declaration on Tuesday, May 13th, 2025 during the sectorial retreat the ministry organized for all the heads of the agencies under the ministry of Marine and Blue economy.
The Minister, who made the agencies heads sign a performance bond to deliver on the ministry’ s mandate,
expressed his unwavering commitment to the full and accelerated implementation of the newly approved National Policy on Marine and Blue Economy which he said has become a catalyst for national economic growth.
He therefore urged the top management of the Ministry and its agencies to recommit themselves to effective leadership, inter-agency collaboration, and measurable performance outcomes.
Oyetola described the gathering as a defining moment for reflection, realignment, and purposeful engagement.
He stressed that the retreat goes beyond administrative formality, representing instead a crucial opportunity to evaluate the sector’s direction and to reposition it for impactful delivery in line with national expectations.
Oyetola emphasised that the Marine and Blue Economy has been placed at the forefront of the Federal Government’s economic growth agenda under the Renewed Hope framework, and that it is incumbent on the Ministry’s leadership to drive this vision with urgency and discipline.
He highlighted recent milestones, including ongoing efforts to modernise port infrastructure, implementation of the National Single Window platform, improvements in port efficiency, enhanced maritime security, progress in aquaculture and fisheries, and the commencement of the long-anticipated disbursement process of the Cabotage Vessel Financing Fund (CVFF).
Most notably, he described the recent approval of the National Policy on Marine and Blue Economy by the Federal Executive Council as a foundational achievement that sets the strategic framework for long-term sectoral transformation.
With implementation now the focus, the Minister stressed that leadership across the Ministry and its agencies must fully internalise the policy’s strategic priorities and translate them into actionable programmes.
He called for disciplined execution anchored on improved coordination, technology adoption, transparency, environmental stewardship, and institutional accountability.
He urged all agencies to treat the Performance Bonds signed during the retreat not as symbolic gestures, but as serious commitments to deliver concrete, time-bound outcomes that enhance the sector’s contribution to GDP, expand job creation, increase port throughput, and improve regulatory compliance and revenue mobilisation.
Oyetola also highlighted Nigeria’s ongoing bid for a Category C seat on the International Maritime Organization (IMO) Council, describing it as a strategic national objective.
 He stressed that the Ministry would continue to lead on diplomatic engagement and international outreach, but that every agency must play its part in showcasing Nigeria’s readiness to continue to lead and contribute meaningfully to global maritime affairs.
In his opening remarks at the retreat, the Permanent Secretary of the Federal Ministry of Marine and Blue Economy, Mr. Olufemi Oloruntola, echoed the Minister’s call for decisive action.
He noted that the Ministry stands at a pivotal juncture in the implementation of the Renewed Hope Agenda.
According to him, under the visionary leadership of Honourable Minister Adegboyega Oyetola, the Ministry has achieved commendable progress, with the approval of the National Policy on Marine and Blue Economy marking a significant milestone.
 He stressed, however, that the priority now must be the translation of the policy into real, measurable outcomes.
Oloruntola described the retreat as a critical platform for identifying and resolving the barriers to effective execution, strengthening inter-agency synergy, and defining the specific steps needed to position the Marine and Blue Economy as a major driver of national development in alignment with global trends.
 He noted that a key feature of the retreat would be the signing of Performance Bonds by Heads of Agencies, which would be tied to clearly defined Key Performance Indicators (KPIs).
This, he said, is a reflection of the Ministry’s collective commitment to accountability, results, and service excellence.
He commended the Heads of Agencies for their readiness to champion this new era of accountability within their institutions and for their commitment to cascading these obligations throughout their teams.
 He further emphasised the importance of strong collaboration between agency leadership and Ministry management, noting that while the Minister provides the strategic direction, it is the responsibility of senior management to ensure that direction is translated into measurable results through discipline, coordination, and dedication.
Oloruntola expressed his appreciation for the guidance and leadership of Honourable Minister Oyetola, whose clear vision and unwavering commitment, he said, have been instrumental in defining the Ministry’s path and energising its personnel.
He also acknowledged the support of the National Assembly Committees overseeing the sector, including the Senate Committee on Marine Transport chaired by Senator Wasiu Eshinlokun and the House Committee on Maritime Safety, Education, and Administration, led by Hon. Khadija Bukar Abba Ibrahim.
 He praised their oversight, partnership, and legislative backing, which have significantly reinforced the Ministry’s efforts.
Continue Reading

Trending