Members of the Barge Operators Association of Nigeria (BOAN) has appealed to the Nigerian Shippers Council (NSC) to help prevail on the Nigerian Ports Authority (NPA) to convert the N50m Bank Bond placed on barge operators into an Insurance guarantees.

Recall that the NPA, in its effort to enthrone professionalism and competency in the barging industry, mandated all barge operators to have a N50m Bank Bond before being issued an operating license.

However, speaking during a recent meeting with the Nigerian Shippers Council, the BOAN President, Olumekun Olubunmi, reiterated that discussions had already taken place with NPA and insurance companies regarding the possibility of replacing the Bank bond with an insurance-backed guarantee.

He stated that if a single insurance provider found the burden too heavy, multiple insurance companies could be engaged to share the risk.

Olumekun added that the NSC should take the lead in engaging NPA to advance discussions, as BOAN had previously engaged with the former NPA administration on this matter but had yet to meet with the current leadership.

Responding, the leader of the NSC delegation and Director of Inland Transport Service, Alh. Mustapha Zubiru, emphasized the critical role of barge operations in port decongestion and the overall maritime industry.

He noted that his visit was to assess BOAN’s challenges and explore solutions, particularly regarding the mandatory ₦50m Bank bond required by the Nigerian Ports Authority.

He acknowledged BOAN’s proposal to adopt an insurance bond as an alternative and indicated that NSC would convene a meeting with NPA, insurance companies, and barge operators to further deliberate on its feasibility.

The NPA had introduced the N50m Bank Bond in 2024 following series of accidents involving barges on the nation’s inland waterways, with many containers falling off barges, raising questions over the standards of the type of barges being used to carry containers along the nation’s inland waterways

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