The incident occurred in Ngaski Local Government Area of Kebbi State at about 10am.
Apart from the people onboard, the wooden boat was said to be carrying bags of sand for gold miners, motorcycles and other equipment as the locals were heading for a local market.
Sources said that while authorities were using out-dated equipment to bring out those trapped under the water, many local divers were using crude methods to search for the missing passengers including men, women and children.
The Area Manager of the National Inland Waterways Authority (NIWA) in Yauri, Kebbi State, Mr Yusuf Birma, confirmed the incident adding that it was caused by overloading and weak boat.
The boat was travelling between central Niger state and Wara in northwest Kebbi state when it sank, National Inland Waterways Authority local manager Yusuf Birma told reporters.