NPA targets ₦1.28 trillion revenue in 2025, unveils bold port reforms

The Nigerian Ports Authority (NPA) has set a revenue target of ₦1.28 trillion for the 2025 fiscal year, marking a 40 per cent increase from the ₦894.86 billion it generated in 2024.

This projection is underpinned by sweeping modernisation plans, the full operationalisation of the Dangote Refinery’s marine assets, and the deployment of advanced technology aimed at boosting port efficiency and competitiveness.

NPA Managing Director, Abubakar Dantsoho disclosed this on Monday during the agency’s budget defence before the House of Representatives Committee on Ports and Harbours. He noted that the 2025 budget estimates reflect not just figures, but the Authority’s commitment to transformation.

“Our 2025 budget proposal is more than figures; it reflects our aspirations for a more efficient, globally competitive port system,” Dantsoho told the lawmakers, highlighting that more than 70 per cent of the projected spending will go into capital projects.

The Authority exceeded its 2024 revenue target of ₦865.39 billion, closing the year with a total revenue of ₦894.86 billion. However, Dantsoho revealed that only ₦417.86 billion of the approved ₦850.92 billion expenditure had been utilised as of the reporting period.

Despite the underutilisation, the NPA made a landmark contribution of ₦400.8 billion to the Consolidated Revenue Fund (CRF) in 2024—almost double the ₦213.23 billion remitted in 2023. Of this amount, ₦344.7 billion was deducted at source.

“This shows our unwavering commitment to national revenue generation, even when our operational liquidity is affected,” Dantsoho emphasised.

He attributed the projected revenue increase to several factors, including the full activation of the Dangote Refinery’s Single Point Mooring (SPM) system—expected to attract over 600 vessels annually—as well as the commissioning of upgraded terminals at WACT and OMT, which are expected to boost container throughput.

Additionally, Dantsoho noted the upcoming deployment of critical automation systems such as the National Single Window, Port Community System (PCS), and the Vessel Traffic Management System (VTMS). He added that global trade disruptions, such as the ongoing Russia-Ukraine conflict, are contributing to increased cargo volumes to Nigerian ports.

For 2025, the NPA projects revenue from four key sources: Ship Dues (₦544.06 billion), Cargo Dues (₦413.06 billion), Concession Fees (₦249.69 billion), and Administrative Revenue (₦73.07 billion).

The proposed ₦1.14 trillion expenditure for 2025 includes ₦778.46 billion earmarked for capital projects. These funds will be directed towards revitalising key port infrastructure in Calabar, Warri, and Burutu, enhancing towage services, deepening channels, and ensuring compliance with global maritime security protocols.

“Investments in infrastructure and technology are non-negotiable if we are to stay competitive regionally and globally,” Dantsoho said, noting the pressure from better-equipped neighbouring ports and the deterioration of Nigeria’s port infrastructure.

He also pledged to close the technology gap by upgrading legacy systems and improving cybersecurity, stressing that digital transformation is critical to aligning with global best practices.

“We can say that with timely access to internally generated revenue and capital funds, NPA would deliver the kind of impact Nigeria expects,” he added.

Chairman of the House Committee on Ports and Harbours, Hon. Nnolim Nnaji, commended the NPA’s 2024 performance and urged the Authority to step up efforts in improving port infrastructure and addressing national revenue and unemployment concerns.

“No country can thrive economically without high-performing ports. They are the economic heartbeat of every nation, determining how buoyant a country is through the flow of imports and exports,” Nnaji stated.

He stressed that the NPA’s performance impacts far beyond maritime operations, as increased port activity can catalyse job creation across various sectors.

“The Nigerian Ports Authority is not just a revenue-generating agency; it is a national asset in terms of employment and economic impact. We expect to see detailed strategies on how to improve revenue generation and expand employment opportunities through your 2025 budget,” he added.

Nnaji further noted growing interest in establishing new ports across the country but cautioned against neglecting older facilities.

“As we welcome investment in new ports, we must not abandon the old ones. Maintaining and upgrading our existing ports, both in the Eastern Corridor and the Western axis, is essential to long-term sustainability,” he said.

The committee concluded by urging the NPA to provide a clear and actionable financial strategy that addresses national priorities and strengthens Nigeria’s position in the regional and global maritime arena.