Checks by Shipping Position Daily have revealed that a significant number of barge operators have begun relocating their operations from Lagos ports to Port Harcourt and Warri, citing harsh operational environments, unfavourable policies by the regulatory agencies and dwindling container volumes as key reasons for the migration.
Barge operators who spoke with our correspondent last week disclosed this development, attributing the exodus to terminal operators’ inability to provide timely loading windows, leaving barges idle for weeks and creating massive economic setbacks for investors.
Recall that many exporters had earlier lamented that due to a slump in barge operations at the nation’s busiest port- Apapa Port, many barge operators may lay-off workers or downsize their businesses as many barges are lying idle, doing nothing.
Lamenting the decline in barge operations at Apapa Port, especially at APM Terminals, President of the Barge Operators Association of Nigeria (BOAN), Bunmi Olumekun, revealed that currently, APM Terminals has no berthing space for barges. He also revealed that Lekki Port is currently not patronizing indigenous barge operators due to the type of barges being used by most indigenous operators.
However, speaking exclusively with our correspondent last week, the BOAN President, Bunmi Olumekun, re-echoed concerns over the dwindling operations of barge services in Lagos, especially around the Lekki Deep Seaport, Apapa and Tin Can Port, due to operational and financial challenges. He disclosed that a growing number of barge operators are either putting up their barges for sale or relocating their businesses to Port Harcourt and other parts of the country with better prospects.
Olumekun noted that the migration trend is largely driven by increasing opportunities in the oil and gas sector. With refinery lines becoming active, many barge owners are converting their vessels into oil tankers to tap into the rising demand in economic regions outside Lagos. This development, he said, has led to a surge in activity in those regions, outpacing that of Lagos.
According to the BOAN President, the technical and financial requirements for operating at the Lekki port are a major barrier for most indigenous barge operators. The port demands sea-going barges, which many cannot afford. He emphasized that acquiring a self-propelled barge could cost between ₦4 billion to ₦5 billion, a figure beyond the reach of most local operators who typically rely on conventional barges and tugboats.
Olumekun stressed that the sector is underutilized and called for increased financial support and investment to boost local capacity. He highlighted the potential of Nigeria to become a hub for transshipment in West Africa, enabling cargo movement by barge to countries like Benin Republic, Ghana, Côte d’Ivoire, and Liberia. However, Olumekun noted that these opportunities remain largely untapped due to lack of funding and infrastructure.
Despite the challenges, BOAN reported a significant milestone in cargo movement, estimating that approximately 5 million twenty-foot equivalent units (TEUs) had been moved within the past year. Olumekun believes with the right support, the figure could be significantly increased, further boosting Nigeria’s maritime sector and regional influence.
“Some of the refinery lines are working. Everybody is converting to oil tankers. They are taking their barges there. That’s why you see there are more jobs over there now than even in Lagos. For you to go to Lekki, you must have a sea going barge. How many barge operators are proud of one to two billion naira to buy a barge? Which you are not guaranteed of tomorrow. So, all those things are financially impacting on us. We are not financially buoyant to get a sophisticated barge” he lamented.
On his part, Daniel Eze, the Public Relations Officer of BOAN, confirmed the migration of barge operators out of Lagos ports. According to him, the decision of some operators to abandon Lagos was also fuelled by certain policies of the Nigerian Ports Authority (NPA), including the imposition of dollar-denominated charges, which place a heavy burden on local investors already grappling with the harsh forex climate.
In the past, barges operated actively on multiple routes, linking Apapa and Tin Can ports to locations such as Kirikiri, Mile 2, Mazamaza, Ikorodu, Ibeshe, Eji, and Agbara. However, Eze said most of these feeder routes have witnessed reduced traffic in recent times due to low client patronage and declining demand.
While many of the barges relocating to Port Harcourt and Warri are no longer used for container movement, Eze noted they have found new opportunities in the oil and gas sector, particularly for transporting heavy-duty materials and supporting offshore servicing operations.
“What is the reason for keeping your barge idle for one week or one month if you cannot get a window to take the container to the port? When you can engage those barges in Port Harcourt and Warri, where there are new opportunities. Some of those policies are not entirely bad, but the timing is. How do you expect a local investor to pay charges in dollars when the exchange rate is so volatile? It’s simply not sustainable.
“These barges now convey materials for oil servicing companies, service pipelines, and even support transportation in waterfront residential communities. They’re being used more for wet cargo and light oil services, than for containers” Eze said.
