Nigeria Port Authority Targets Over ₦1.2 Trillion Revenue in 2025 After Contributing 400 Billion to Federal Treasure in 2024

The Managing Director of the Nigerian Ports Authority (NPA),  Dr. Abubakar Dantsoho at a senator committee session for 2024 budget performance review and  presentation of the 2025 proposal before the Senate Committee on Marine Transport announced the agency’s visionary goal to generate ₦1.279 trillion in revenue for the 2025 fiscal year — a significant 40% increase from the ₦894 billion recorded in 2024.

Expressing deep appreciation to the committee for its continued guidance and collaboration, the NPA boss acknowledged the crucial oversight role of the National Assembly in ensuring transparency and fiscal discipline across government agencies. “Your unwavering support has made it possible for us to consistently deliver well-articulated annual financial plans,” he stated.

Ports at the Heart of Economic Growth

Emphasizing the strategic role of the NPA in national development, the MD underscored two core functions of the authority: trade facilitation and the provision of marine and port-side services. “The multiplier effects of efficient port operations cut across all sectors. If we do well at the ports, businesses nationwide benefit,” he explained.

He warned that inefficiencies at Nigerian ports risk diverting cargo traffic to competing West African ports like Cotonou, Lome, Tema, and Abidjan, stressing the need to remain competitive.

To that end, the NPA is investing heavily in infrastructure, advanced equipment, digital technology, and human capacity. These investments, he said, are crucial for reducing ship turnaround time, boosting cargo volumes, and ensuring Nigeria becomes the maritime hub for West Africa.

2024 Budget Review and Key Challenges

The NPA’s 2024 budget includes ₦185 billion for operational expenses and ₦232 billion for capital projects — the latter figure expected to rise soon due to ongoing procurement activities. However, the MD raised concerns about systemic challenges hampering capital expenditure execution.

Top among them is the 50% automatic deduction by the federal government from NPA’s revenue at source. “This deduction, along with delayed remittances and restrictive procurement thresholds, often stalls critical infrastructure projects,” he noted.

Despite these hurdles, the NPA contributed a record ₦400 billion to the federal treasury under the 2024 budget — almost double its ₦213 billion remittance in 2023. The breakdown includes ₦10 billion in cash payment, ₦46 billion from port development levy, and ₦344 billion through direct deductions.

2025 Revenue Projections and Strategic Assumptions

Looking ahead, the NPA’s 2025 revenue projection is based on key economic and operational assumptions, including:

Stability of the naira-dollar exchange rate at ₦1,400 to $1
Full operation of the Dangote Refinery by late 2025
Growth in LNG and modular refinery traffic
Rising import volumes from China due to geopolitical shifts
Increased cargo throughput at upgraded terminals in the eastern ports
Commencement of modernization works at Tin Can and Apapa ports

The authority projects earning ₦413 billion from cargo handling, ₦544 billion from ship-related services, ₦249 billion from concessions, and ₦73 billion in miscellaneous revenue.

On the expenditure side, the NPA is proposing ₦1.1 trillion — with ₦778 billion allocated to capital projects and ₦364 billion for operational costs. Key focus areas include port automation, enhanced towing services, channel dredging, and international compliance upgrades.

Oversight Committee Sets Expectations

Earlier, the Chairman of the Senate Committee Marine Transport , Sen. Sen.WasiuSanni Eshinlokun in his welcome address reaffirmed the National Assembly’s constitutional duty to ensure prudent use of public funds. “Our review will focus on key performance indicators, project execution, revenue performance, and service delivery,” he said.

He announced that the committee would conduct oversight visits to NPA projects in Lagos to verify implementation of the 2024 budget. “As we review the 2025 IGR proposal, we expect clear strategies for boosting revenue, modernizing port operations, and improving security infrastructure.”

He concluded with a commitment to continued partnership: “We are not adversaries, but partners in progress, united by a shared goal to strengthen Nigeria’s maritime industry for sustainable economic growth.” He said.