Lost at sea: How Nigeria’s waterways drown business owners in debts

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Nigeria’s waterways serve as vital conduits for commerce, particularly for small and medium-sized enterprises reliant on water transport to reach remote areas and coastal communities. Despite its economic importance, the maritime sector faces numerous challenges, including piracy, corruption, substandard infrastructure and frequent accidents. These issues not only jeopardise lives but also result in substantial economic losses for businesses, GODFREY GEORGE writes

The day began like any other—a bright, humid morning on the Port Harcourt-Bonny waterways, with the rhythmic sound of water lapping against the boat’s hull and the distant hum of a vibrant market on the Nembe waterside end of the Bonny Jetty. But for Mrs Pat Mienye, it would mark the end of everything she had fought so hard to build.

Pat had known hardship all her life, but nothing could have prepared her for what lay ahead. She had lost her husband just two months after the birth of their second child, Tonte. As a single mother who had relied solely on her husband’s income, his death struck her like a thunderbolt. Nursing a newborn while mourning the loss of her partner became one of the most harrowing experiences of her life.

“My husband was everything to us. He worked as a crane operator for various construction firms on contract. The pay wasn’t much, but we never went hungry. He provided for everything we needed,” she recalled, her voice thick with emotion. “But everything changed when he fell ill.”

What began as a simple case of malaria rapidly deteriorated, turning her once-active husband into a shadow of himself. He could barely stand, and his stomach rejected everything he ate.

“He was always vomiting, losing so much weight that we feared he might die from malnutrition. All the tests pointed to one thing—malaria. We treated him both in the clinic and through traditional methods, but months later, he passed away.”

Her voice faltered, the memories still as raw as they were nine years ago. “It broke me. He was the only surviving son in his family, the rock of his mother after his father had died young. The entire family depended on him for survival. His death is something many of us still struggle to come to terms with, even after all these years.”

The weight of that loss lingered as if the grief had woven itself into the very fabric of her daily existence. Yet, through it all, Pat refused to stay downtrodden.

Tonte was just nine months old when Pat began borrowing. A local shylock had promised to lend her some money to rebuild her life. The interest rate was sky-high, but she had no choice, as the banks refused to approve a facility for her due to her lack of collateral or financial track record.

“He (the shylock) offered to give me N500,000, but I had to pay back N600,000 in six months. I didn’t know what business to start, but I knew I had to do something—anything—to put food on the table for my two children,” she said.

Through a few women in her neighbourhood, Pat learned of a trade route spanning from Ikot Abasi through Opobo to Bonny Island. This is locally known as the ‘bush market’. The women travelled to Cross River and Benue states to purchase yams, vegetables, plantains, and imported stockfish from Cameroon, among other goods. Her interest was piqued.

Armed with her borrowed N500,000, Pat set out to explore this new opportunity.

“We stayed up to two days on the sea,” she explained. “We would stop by different villages to buy goods—stockfish, palm oil, and plantains. I had never done anything like that before.”

Pat detailed the gruelling conditions aboard the local boat. “There was no time to bathe. We just used sachet water to wash our bodies, and all we ate was garri soaked in water with some groundnuts which some women had brought along with them. Some also came with dry gin. They said it was to keep themselves active.”

She had secured an additional N500,000 loan facility from a family friend working at a microfinance bank, who acted as her guarantor. With the money she had borrowed from the shylock, she was owing over N1 million.

By the time the boat was fully loaded, her goods were worth over N900,000.

But on their way back from Ikot Abasi, near Opobo, where some women were to alight, tragedy struck.

“It was like magic. The driver had said it was a double-engine boat, but he lied. It was a single-engine vessel. He said the fuel pipe was leaking and the engine had developed a fault. I was terrified because it was my first journey,” she said.

The boat was packed to capacity—dried fish, stockfish, palm oil, plantains, bananas, garri, and yams were heaped so high that passengers had to sleep on top of the goods. As they waited for the driver to fix the engine, water began seeping into the boat.

“The driver told us to bail the water out, but it kept rising. I was crying; my network bar had disappeared. We were in the middle of nowhere,” Pat said, her voice trembling at the memory.

As the hours passed, desperation set in. The women began throwing goods overboard—pepper, tomatoes, and even yams. Still, it made no difference. The driver also became impatient. She said he started shouting at them, “Throw these things into the sea. We are going to drown! We are going to drown!”

“We paddled for another 20 minutes, but the boat was too heavy, and we had just one paddle, which the driver handled. At one point, the driver said he would swim to the shore to seek help and come back for us. I was so scared. We were all women, all alone in the middle of the sea at night.

“By the time the driver came back with a canoe to rescue us and carry some of the goods that were still aboard, it was almost 9 pm, and the boat was nearly submerged. All my money, my sweat—everything I owned—was gone.”

Pat returned with just a few items worth no more than N30,000.

Piling debt

Pat was immediately plunged into debt. The lender was relentless, and the microfinance bank demanded its repayment. She was forced to take yet another loan to offset the mounting interest.

“I was depressed. My child was growing fast, and I had nothing to my name. Thankfully, my late husband’s family was kind enough to move me back to their homestead, where I started teaching while selling ice cream to make ends meet. But the sea swallowed my dream of being a successful woman.”

Her second child, Pamela, did not start formal schooling until she was nearly three.

A parallel loss

John Chukwuemeka, a building materials merchant, was another victim of maritime tragedy.

Unlike Pat, John’s business had thrived for nearly a decade. However, in 2020, while delivering 2,000 bags of cement to Peterside near Bonny main town in Rivers State, his boat sank, wiping out millions in investment.

“Then, a bag of cement was around N5,600 or so for wholesale, and I had 2,000 bags aboard, so we’re talking about millions of naira. I was sick for weeks. I couldn’t eat. I thought I was going to die. My wife was so worried for me, but it was the mistake of one man that caused that tragedy,” he said.

John had secured contracts to supply cement to several construction sites in Peterside and Akiama, all on the oil-rich island of Bonny.

“That day, the boat capsized, and I lost everything. I had over 2,000 bags of cement in that boat, and I lost everything,” John recalled bitterly.

No explanation was given to John other than that the boat collided with a shipwreck and the boat emptied its contents into the river before it could reach Peterside, where he was to offload 50 bags and take the rest to his warehouse along Akiama Road, Bonny.

John, however, later discovered that the people in charge of the jetty had used another boat that was unsuitable for the delivery. They claimed that the other boat had already been paid for by another merchant, but John was unaware of this arrangement. He had paid for the double-engine boat and had someone he trusted to do the driving, but things were changed at the last minute.

“I was in Enugu at that period to bury my mother-in-law. I had spent so much money, as we know burying an aged person in the South-East costs a lot of money. I thought I wouldn’t survive the incident. My business suffered for years. I am not sure I will ever forget that incident because most of the goods were bought on credit, and I had to send the money back to the merchants and keep the gain,” he said.

The incident not only wiped out his financial base but left him fighting a long, arduous battle to regain credibility with his clients.

“The contracts were time-sensitive, and I had to refund part of the money to avoid lawsuits. One of the orders was from a church, and they had already set the unveiling for that same weekend. I sent the goods on Thursday. I had to sell two of my trucks and even part of my land in Port Harcourt just to cover the losses. Even now, I’m still paying for it.”

For both Pat and John, the tragedies on the waterways were a stark reminder of the precariousness of life and business in a region where safety and accountability are often neglected.

The overloaded boats, poorly maintained engines, and lack of proper regulation are not just inconveniences but factors that continue to claim lives and livelihoods.

‘Every single thing sank’

Nedu Chiagozie worked as a sales representative with a toiletry distributor in Finima. He also delivered products to oil servicing firms operating in Nembe, Brass, and other riverside communities in Bayelsa and Rivers State.

But in 2021, after loading a boat bound for the Finima jetty from Port Harcourt, his goods were emptied into the river.

“I was not on the boat. That was my luck. I’m sure if I were there, I would be telling a different story. Normally, we don’t use that local boat, but we couldn’t secure a booking with the NLNG boat, so we had to go with that option.”

“My boss lost goods worth millions of naira because the brands of tissue sold for almost N9,000 per pack. We also loaded kitchen towels, serviettes, and other toiletries aboard.”

Nedu said he was eventually fired and had to start his life from scratch.

“It wasn’t my fault, but I understand why she fired me,” he said.

Like Nedu, like Ella

Ella Pepple, who sells perfumes and African print fabrics, was born and raised on Bonny Island. After graduating with a second-class upper degree in Microbiology from the University of Port Harcourt and waiting two years for a job, she decided to start her own small business.

“I had some money saved, and I also begged a few people in our family to help out. It was a community effort for me to start. I usually don’t go to the market. I just ordered from vendors in Port Harcourt. I select the goods I want, make the payment, and they send the goods to me,” she recounted.

During Easter in 2022, she was in Port Harcourt for a Bible seminar and decided to visit her vendors and buy her goods herself. She also decided to add cosmetic products to her business line.

She set out on Friday for the last boat back to the island but was told that the available boat was the local one, meant only for goods. She would join the first boat the next day to pick up her goods at the Bonny main jetty.

But the following day, news broke that the boat was overloaded, and the driver had to throw some goods overboard. Unfortunately, hers were part of it.

“I lost more than N430,000 worth of goods because I also bought some beads and took customised orders for two brides who needed a particular kind of fabric. One of them had her wedding the first week of the next month. What excuse would I give her?”

“I was so depressed; I thought I was going to die. My business has yet to pick up properly now. I only wait for the big merchants to bring goods to the island before I buy from them. The profit is so slim, but the risk is reduced for me. I don’t know what to do anymore, and there are no alternatives. The Bonny-Bodo Road has not been completed,” she lamented.

Vessel Austrheim

On 25 August 2019, the vessel Austrheim embarked on a voyage from Calabar, Nigeria, to Tiko, Cameroon. Tragically, it never reached its destination, sinking near the Bakassi Peninsula in the Gulf of Guinea. The disaster resulted in significant loss of life and cargo, profoundly affecting numerous businesses and families in the region.

The Austrheim, a converted cargo vessel, was reportedly carrying approximately 200 passengers and a substantial amount of goods when it encountered severe weather conditions. Survivors recounted that the ship ran aground after striking a sandbar, leading to its capsizing and eventual sinking. Initial reports confirmed three fatalities, with over 100 individuals rescued. However, as search and rescue operations continued, the death toll rose to 17, with many others still unaccounted for.

Investigations into the disaster revealed that overloading was a significant factor contributing to the sinking. The Austrheim was designed to accommodate no more than 75 passengers, yet it was carrying over 200 at the time of the incident. This blatant disregard for safety regulations, coupled with reports of the captain’s negligence, painted a grim picture of the operational standards upheld by the vessel’s operators.

The sinking of the Austrheim had devastating economic repercussions, particularly for traders and business owners who relied on this maritime route between Nigeria and Cameroon. The vessel was laden with various commodities destined for markets in Central Africa. The loss of these goods meant that numerous entrepreneurs faced financial ruin, with their investments submerged in the Gulf of Guinea. For many, this disaster not only wiped out their current stock but also jeopardised future business prospects, leading to a cascade of economic hardships.

In the immediate aftermath of the disaster, Cameroonian authorities launched search and rescue operations, deploying the National Navy and special oil field protection groups to the scene. Over 100 survivors were rescued and transported to Bota Port in Limbe. The Cameroonian defence ministry acknowledged the overloading issue and indicated that investigations were ongoing to determine the full circumstances surrounding the incident.

On the Nigerian side, there was a notable silence from government officials. Despite the significant number of Nigerian nationals affected and the economic implications for Nigerian businesses, there was a lack of a coordinated response or official statement addressing the tragedy.

This absence of action drew criticism from various quarters, with many calling for stricter enforcement of maritime safety regulations to prevent similar disasters in the future. The lack of response was seen as emblematic of the broader issues surrounding maritime safety in the region, where negligence and poor oversight often put lives and businesses at risk.

One month, one sinking boat

In recent months, Nigeria has experienced several boat accidents that have resulted in significant loss of life and goods, severely impacting businesses and communities.

September 14, 2024, a wooden boat carrying approximately 70 farmers capsized on a river near Gummi town in Zamfara State. The farmers were en route to their farmlands when the accident occurred.

At least 64 people were feared dead, with only six survivors rescued after three hours, according to Reuters.

The loss of these farmers disrupted agricultural activities, leading to food shortages and economic hardship for local communities dependent on farming.

That same month, on 30 September, an overloaded boat carrying about 300 passengers capsized along the Niger River in Mokwa, Niger State.

The boat was returning from an Islamic festival, and many people were said to have several goods for sale inside the vessel. At least 11 people died, and more than 100 others were reported missing.

The tragedy affected families and communities, leading to economic disruptions, especially in areas where the victims were traders and farmers.

The next month, October 3, a boat carrying nearly 300 passengers, mostly women and children, capsized on the River Niger in northern Nigeria. The passengers were returning from a religious festival, and some were also farmers and businesspeople who had bought goods for sale. Dozens were feared dead, with around 150 people rescued.

The loss of lives, including traders and artisans, disrupted local markets and economic activities, leading to financial losses for businesses relying on these individuals.

Similarly, November 26, a speedboat struck a submerged log and capsized in the Gbaramatu Kingdom of the Warri South-West district in Delta State. All the goods were lost, and the traders lost their fortunes. At least five people died, and 20 others were missing, Reuters reported.

Meanwhile, August 8, a wooden boat caught fire and exploded on a river in Bayelsa State. The boat was carrying traders with goods to coastal communities. At least 20 people were killed.

In Nigeria, numerous businesses depend on waterways for transporting goods, and boat accidents have led to significant losses, forcing many to start anew.

These incidents underscore the critical need for improved safety measures, better infrastructure, and effective enforcement of regulations to prevent such tragedies and protect the livelihoods of those dependent on water transport and related businesses.

Water-to-dryland: The cost

In Nigeria, waterways serve as vital arteries for commerce, especially for small and medium-sized enterprises that rely on water transport to move goods efficiently across the country.

However, the maritime sector faces significant challenges, including accidents, piracy, infrastructural deficiencies, and corruption, all of which lead to substantial economic losses.

Nigeria’s extensive network of rivers and its Atlantic coastline make water transport a crucial component of the nation’s logistics.

According to the International Trade Administration, in Q1 2021, 97.09 per cent of total exports from Nigeria were transported via waterways, underscoring the sector’s significance.

Additionally, many businesses in the country depend on the waterways to reach remote communities in riverine areas such as Bonny, Brass, Nembe, and others in mostly coastal regions like Rivers, Bayelsa, Delta, Akwa Ibom, Cross River, and other parts of the Niger Delta.

The Nigerian maritime sector has been plagued by inefficiencies, leading to substantial economic losses.

A 2018 study by the Lagos Chamber of Commerce and Industry (LCCI) estimated that the economy loses about N600 billion in customs revenue and approximately $10 billion in non-oil export revenue annually due to port inefficiencies.

These challenges have also resulted in reduced capacity utilisation, standing at 38 to 40 per cent, and have caused about 40 per cent of businesses around port communities to relocate, scale down, or shut down operations.

Piracy and its economic toll

Piracy in the Gulf of Guinea, where Nigeria is a key coastal state, poses a significant threat to maritime trade.

The United Nations Office on Drugs and Crime highlights that while direct monetary costs of piracy are relatively low, the indirect costs—such as increased security measures and higher insurance premiums—are substantial.

These expenses ultimately trickle down to businesses, especially SMEs, increasing operational costs and affecting profitability.

Maritime corruption further exacerbates the challenges faced by businesses. The Maritime Anti-Corruption Network reports that between 2019 and 2023, the average corrupt demand was around $20,600 per vessel.

Such practices inflate the cost of maritime operations, with SMEs bearing a disproportionate share of the burden due to their limited financial resilience.

The overall logistics costs in Nigeria have been on the rise, reaching $69.1 billion in 2020. These escalating costs are partly due to the inefficiencies and challenges within the maritime sector, including goods lost at sea, which compel businesses to seek alternative, often more expensive, logistics solutions, according to Statista.

Impact on SMEs

SMEs are particularly vulnerable to the challenges in Nigeria’s maritime sector. The loss of goods at sea can be devastating, leading to financial instability or even business closure. For instance, the loss of a single shipment due to piracy or an accident can wipe out an SME’s profit margins for the year, experts have noted.

Additionally, increased logistics costs and corruption-related expenses further erode their competitiveness.

‘Stricter rules needed for water transport in Nigeria’

A water safety professional, Mr Tessy Promise, said the waterways serve as vital arteries for commerce, especially for small-scale traders who rely on boats to transport goods across the country’s extensive network of rivers and coastal areas.

However, according to him, the frequency of boat accidents has raised significant concerns about the safety and reliability of this mode of transport.

“Implementing effective water logistics strategies is essential to mitigate these accidents and safeguard the livelihoods of traders,” he noted.

Nigeria’s inland waterways span approximately 10,000 kilometres, with about 3,800 kilometres navigable year-round. These waterways connect various regions, facilitating the movement of goods and people.

He said, “Despite their potential, the waterways are plagued by challenges, including inadequate infrastructure, lack of regulation, and safety concerns.

“In 2023, over 300 deaths were recorded across Nigeria due to passenger ferry accidents on coastal and inland waterways. The figures for 2024 would be similar when released. This alarming statistic underscores the urgent need for improved safety measures and regulatory oversight.”

Stating the challenges leading to water accidents, Promise identified overloading, poor vessel maintenance, and inadequate safety equipment as contributing factors.

He said, “Many boat operators exceed the recommended capacity to maximise profits, compromising vessel stability.

“A lack of regular maintenance leads to mechanical failures during transit. There is also an absence of life jackets and emergency communication tools, which increase fatalities during accidents.”

Another water safety professional, who works in the rigging section of an oil firm in Bonny Island, Rivers State, but refused to give his name for security reasons, said many boat operators were unskilled to drive boats.

“The same way we have driver’s licences for cars on the road, boat drivers should be made to produce their own licences. Do they even have licences? I know there was a time the state government began an initiative in 2012 or so to streamline this process, but many of the drivers kicked against it.

“They claimed that all they need to do is learn how to be a ‘pilot,’ as they love to call themselves, and that is it. They don’t know anything about the required weight a boat can carry, what to do if there is an engine fault, or how to handle cargo, especially fragile ones. They are mostly unskilled, and the weak enforcement of safety regulations allows substandard operations to persist.”

NIWA’s role

Although the National Inland Waterways Authority has been actively addressing the challenges of boat accidents that result in significant losses for traders and small businesses relying on water transport, the loss of lives and valuables leaves much to be desired.

NIWA’s efforts encompass regulatory enforcement, safety campaigns, and collaborations aimed at enhancing the safety of the nation’s waterways.

NIWA has been vigilant in enforcing regulations to ensure the safety of waterway users, but most of the local governments, like Bonny Island, for instance, have no NIWA presence.

A boat operator, who gave his name as Kalada, when asked whether he was aware of NIWA, said he was an “independent operator” and had no business with the government.

“Na government buy boat for me? I suffer buy boat for myself, you come dey tell me about NIWA. What has NIWA done for me? We have an association here in Bonny. We have rules and regulations, and we keep to it,” he said.

Following a boat accident in Kogi State, NIWA’s Managing Director, Bola Oyebamiji, stated that the authority would investigate the incident and prosecute the boat captain and owner for deliberate disobedience to extant laws on waterways.

Additionally, NIWA has issued several warnings to waterway users against utilising substandard and poorly maintained boats. The authority has urged the National Assembly to expedite the passage of the Coastal Guards Bill to improve safety and security across the nation’s waterways.

Global best practices

The economic impact of waterway accidents is profound. Traders lose goods worth millions of naira, leading to financial instability and hindering economic growth. Implementing effective water logistics can reduce these losses, boost trader confidence, and promote commerce.

Looking at international examples can provide valuable insights.

For instance, Uganda, a country with extensive reliance on water transport across Lake Victoria, has made strides in reducing boat accidents by integrating safety awareness campaigns into its regulatory framework.

The Uganda National Roads Authority and Uganda Maritime Administration have collaborated with non-governmental organisations to provide safety training for small-scale operators. According to local news outlets, the authorities are responsible for the distribution of life jackets to boat operators and passengers.

Since 2019, there has been a 30 per cent reduction in the number of fatalities associated with water transport accidents on Lake Victoria.

Kenya’s approach to water safety is anchored in data collection and technology adoption.

The Kenya Maritime Authority has implemented a Vessel Monitoring System on Lake Victoria to track boats and ensure compliance with safety regulations. KMA also enforces the use of registered, standardised vessels and conducts routine inspections to prevent the use of substandard boats.

Between 2017 and 2022, Kenya recorded a 40 per cent decrease in boat accidents on Lake Victoria, attributed to effective regulation and technology.

Leveraging digital tracking technologies can enhance monitoring and accountability on Nigerian waterways, such as the Lagos Lagoon and River Niger.

To curb accidents and protect traders’ goods and lives, authorities must enforce existing laws that mandate safety equipment on all vessels.

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