The Nigerian Ports Authority (NPA) has set an ambitious revenue target of N1.28 trillion for the year 2025, a significant increase from the N894.86 billion achieved in 2024. This projection, presented by NPA Managing Director Abubakar Dantsoho during the 2025 budget defense session before the House of Representatives Committee on Ports and Harbours, reflects the agency’s commitment to modernizing port infrastructure, leveraging technology, and capitalizing on anticipated growth in maritime activity. The NPA’s strategy is anchored on several key drivers, including the expected full operation of the Dangote Refinery, the modernization of key terminals, and the adoption of advanced digital systems. This forward-looking approach aims to enhance the efficiency and competitiveness of Nigerian ports within the global maritime landscape.
A core element of the NPA’s 2025 plan is the significant investment in capital projects, with over 70% of the projected expenditure allocated to infrastructure development. This includes upgrades to existing port facilities and the implementation of cutting-edge technologies such as the Port Community System, the National Single Window, and the Vessel Traffic Management System. These investments are deemed crucial to maintaining pace with regional and global competitors, particularly in the face of increasing competition from better-equipped ports in neighboring countries. The emphasis on capital expenditure underscores the NPA’s recognition that modern and efficient infrastructure is essential for attracting investment, facilitating trade, and boosting economic growth.
The NPA’s 2024 performance provides a strong foundation for its ambitious 2025 goals. Exceeding its revenue target of N865.39 billion by generating N894.86 billion, the agency also demonstrated its commitment to national revenue contribution by remitting N400.8 billion to the Consolidated Revenue Fund, nearly double the 2023 contribution. Although the NPA underutilized its expenditure plan, spending only N417.86 billion of the allocated N850.92 billion, the significant increase in revenue generation and remittance to the CRF highlights the agency’s financial strength and its contribution to the national economy. This success, coupled with the projected impact of the Dangote Refinery and other strategic initiatives, reinforces the feasibility of the 2025 revenue target.
The N1.28 trillion revenue projection for 2025 is underpinned by a detailed breakdown of anticipated income streams. Ship dues are expected to contribute N544.06 billion, cargo dues N413.06 billion, concession fees N249.69 billion, and administrative revenue N73.07 billion. The projected surge in cargo volumes, partially attributed to global trade disruptions including the ongoing Russia-Ukraine conflict, is expected to significantly contribute to the overall revenue growth. The anticipated full activation of the Dangote Refinery’s Single Point Mooring system, with its projected capacity to handle over 600 vessels annually, represents a particularly significant driver of this increased maritime activity. Coupled with the operationalization of upgraded terminals like the West Africa Container Terminal and the Onne Multipurpose Terminal, these developments are poised to transform Nigerian ports into major hubs for regional and international trade.
The NPA has outlined a total expenditure of N1.14 trillion for 2025, with N778.46 billion earmarked for capital development projects. This reflects the agency’s strategy of prioritizing investment in infrastructure modernization and technological advancements to enhance port efficiency and competitiveness. The remaining funds will be allocated to operational expenses and other necessary expenditures to ensure smooth port operations and maintain service quality. By modernizing outdated systems and strengthening cybersecurity infrastructure, the NPA aims to bring Nigerian ports up to international digital standards, creating a more secure and efficient environment for maritime trade. This strategic allocation of resources underscores the NPA’s commitment to long-term sustainability and its recognition of the vital role technology plays in the modern port landscape.
Responding to the NPA’s presentation, Nnolim Nnaji, Chairman of the House Committee on Ports and Harbours, commended the agency’s performance and urged continued focus on infrastructure development and revenue growth. While acknowledging the importance of developing new ports, he emphasized the need to upgrade existing facilities, particularly those along the Eastern and Western corridors, to ensure long-term port viability and balanced regional development. Nnaji’s comments highlight the importance of a holistic approach to port development, balancing the need for new capacity with the imperative to modernize existing infrastructure and maintain a competitive edge in the global maritime market. This balanced approach is crucial for maximizing the economic benefits of Nigeria’s strategic location and vast maritime potential.
