Commuters may abandon water transportation if Lagos State government’s plan to introduce an electronic payment system for all private commercial boats suffers a setback following boat operators’ reluctance to embrace the initiative. The state government had proposed the use of the Cowry card electronic payment system as a more convenient and secure way to facilitate transactions and serve as part of the state government’s efforts to provide palliatives in the boat transportation sector.
In the arrangement, commuters, who spend an average of N3, 800 on fare to different destinations in the state, according to the Lagos State Waterways Authority (LASWA), would pay half of the designated fares using their digital wallets and the full payment remitted to boat operators thereafter. The initiative is yet to commence as waterways commuters still bear the brunt of the high cost of fuel and diesel, as other transport sectors have implemented the palliative initiative.
Already, boat operators are experiencing a 60 per cent decline in patronage, which is evident in reduction of number of daily boat trips across the state due to the high cost of water transportation fare occasioned by the removal of fuel subsidy. According to data from LASWA, boat users spent over N15.8 billion on water transportation between January and May 2023.
The data obtained from the Operations Department of LASWA, further revealed that about 416,548 passengers utilised water transportation through the 27 jetties in the state during the period. A breakdown of the data showed that 35,336 passengers boarded boats from Agbara Jetty to Tin Can/Liverpool Jetties at a cost of N1, 500 per person, while 5,569 passengers from Commando Jetty all to Tin Can/Liverpool jetties paid N2, 500.
Also, 28,745 boat users paid as high as N8, 000 each from Elegbata jetty to Porto Novo, Gbaji and its environs. According to LASWA, the lowest recorded number of passengers between January and May 2023 was 857 at Ijora jetty to Makoko at a fare of N500, while the highest was 88,693 passengers from Ebute Ipakodo Terminal to Elegbata, Flour Mill, CMS and environs at a fare rate of N2, 000 each.
The General Manager, LASWA, Damilola Emmanuel, had earlier noted that the authority called on all the associations of boat operators to come together and chart ways on how the subsidy can be facilitated. But the associations are still in sharp disagreement over the acceptance of the conditions of the proposed palliative plans by the state government despite several letters sent by the state government.
The Secretary of Association of Tourist Boat Operators and Water Transporters (ATBOWATAN), Lagos State Chapter, Ayomikun Aworetan, argued that the palliative plan primarily benefits only the passengers and not the boat operators. He said his association had received several letters from the state government, but decided not to heed to the demands, especially the imposition of a five per cent charge on all boat operators for using the Cowry Card.
He alleged that the government is exacerbating the operators’ financial woes and making it even more challenging to sustain their businesses coupled with the high cost of fuel and diesel.
“We received letters from the state government saying that without the Cowry Card, they cannot effectively distribute palliative to operators. But indirectly, we the operators are not the ones benefiting from the palliatives. It is the masses.
“If they pay 50 per cent, they are paying on behalf of the passenger. They are not giving it to the operators and they are now telling us that they are going to charge us five per cent for using the palliative. So, they are adding more to our own operational costs. They are still attaching terms and conditions of the Cowry Card to it,” Aworetan explained.
He also lamented the sharp drop in the patronage of boat transportation, noting that operators have been struggling to fill their boats with passengers.
He explained that before May, about 10 to 15 boats were often fully loaded for journeys, but the number has declined to five boats, adding that the passengers are now opting for road transportation alternatives due to the increased water transportation fare. Aworetan explained that before the subsidy, Marina to Ikorodu was N1, 500, but is now N2, 000, adding that some boats do not see passengers to ferry back in the evening, causing operators to incur losses.
The Secretary of the Maritime Workers Union of Nigeria (MWUN), Boat Operators Unit, Owolabi Omotayo, said, while palliatives are meant for everyone and business entities in the country, boat operators should not be left out. He said the government’s Cowry Card palliative relief for the waterways only benefits the boat users, while using the facilities of the boat operators to implement it.
According to him, boat operators and users should be beneficiaries of the government palliatives on the waterways without any discrimination. Owolabi however, called on the state government to look into the genuine complaints of boat operators and carry everyone along in the disbursement of the proposed palliative in the spirit of equity and justice for all.
On his part, the National Public Relations Officer of Waterfront Boat Owners and Transporters Association of Nigeria Waters (WABOTAN), Raymond Gold, commended the state government’s plan, adding that the right way to do business today is through technology which minimises human involvement and improves efficiency. He said boat operators are only skeptical because they are jittery over the full remittance of their money.
Gold lamented that boat operators have recorded almost 60 per cent drop in patronage since the removal of fuel subsidy in May, adding that before now, water transportation was often considered a cheaper and more convenient alternative for many people in the state. He noted that the recent increase in the pump price of petrol has doubled the fares, causing commuters to reconsider other options.
The WABOTAN spokesman said the decline in patronage is evident in the reduction in the number of daily boat trips, explaining that previously, as many as 20 boats operated from Liverpool to Badagry daily, but the current situation sees just about three to four boats running per day.
Source: The Guardian
