The Nigerian Ports Authority (NPA) has projected double-digit growth in cargo throughput and revenue following BUA Group’s $85 million investment in the expansion of its Port Harcourt terminal, a project expected to significantly increase import capacity and strengthen Nigeria’s eastern port corridor.
The managing director of the NPA, Dr Abubakar Dantsoho, made the projection during a meeting with the chairman of BUA Group, Abdul Samad Rabiu, at the Authority’s headquarters in Lagos, where the industrial conglomerate briefed the NPA on the progress of the terminal expansion.
The investment, which will provide about 600 metres of quay frontage, is designed to support BUA Foods’ expansion programme and enable the company to handle more than two million tonnes of imported raw materials annually.
Speaking during the visit, Rabiu said the company came to appreciate the support of the NPA management and seek continued collaboration as work on the project advances.
“We’re here to, first of all, thank the MD and his team for the support we’re getting, and also to brief NPA and the management on the progress we’re making as regards the expansion of our BUA Ports and Terminals in Port Harcourt,” Rabiu said.
He added, “We’ve gone very far, and we thought it’s important for us to come brief the management and also ask for additional support, and I’m happy that the MD and his team have promised that they’ll continue to give us all the necessary support.”
Rabiu explained that the expansion of BUA Foods in Port Harcourt has made additional port infrastructure imperative.
“As you know, BUA Foods is operating in Port Harcourt, and BUA Foods is expanding, and by the time we are done with the expansion, inshallah, next year, we’ll be having almost over two million tonnes of products being imported as raw materials to Port Harcourt, and for that we need a terminal, we need a facility,” he stated.
He disclosed that the terminal expansion alone represents an investment of about $85 million.
“The ports expansion is about $80 million in total. It’s about $85 million in total, and that is going to give us about 600 metres of seaside,” he said.
According to Rabiu, the expanded terminal will strengthen BUA’s logistics network as the Group continues to grow its food, cement, mining, infrastructure and other industrial businesses.
He stressed that Nigeria’s economic ambitions require greater investment in port infrastructure.
“Nigeria, being the biggest economy, Lagos being the biggest economy, yet we don’t have the infrastructure as far as ports infrastructure is concerned,” he said.
Rabiu also commended the NPA management for its support and praised President Bola Tinubu for appointing the current leadership of the Authority.
Recalling the history of the Port Harcourt terminal, he noted that the acquisition had once faced the threat of revocation but said the present NPA management had provided the support needed to move the project forward.
“I remember that at a point even that terminal acquisition was revoked, but look at us, we are now here, and we’re getting all the support that we need from the management,” he added.
Responding, Dantsoho described the investment as a major boost to trade, cargo movement and the development of Nigeria’s eastern ports, expressing confidence that it would translate into strong growth in cargo volumes and revenue.
“He’s a major stakeholder for many years. And what he’s doing for us is something that is naturally expected of us to put together, to collaborate with them, the major stakeholders, and even the smallest stakeholders, and especially expanding in the eastern ports.
“You know, we need Nigeria to, in the port system, to be like more generic. So now we know that he has invested a lot in Lagos. Now he’s investing also a lot in Port Harcourt.
“So in that way, our volumes will increase, which means that even if we are talking about exporting, we are exporting more. If we are talking about importing, we can import more. And by so doing, now we are going to make more value. That is money from those transactions. And that is what the government is expecting of us.”
Dantsoho also acknowledged President Tinubu’s role in promoting closer collaboration between the NPA and private investors.
“I’m happy that he has mentioned his thanks and appreciation and gratitude to Mr. President for allowing us as management and encouraging us to also collaborate with stakeholders like him and other ones, so that we can make Nigerian Port Authority a greater stakeholder in West Africa and Africa in general,” he said.
The NPA boss said the project is expected to generate substantial increases in cargo traffic and earnings.
“We are going to expect that we are going to have more volumes. Once you have volumes, then you have more value, then more dollars and more naira will come. And that is what is required,” he said.
Providing an estimate of the expected impact, Dantsoho added: “On a normal day, 16 per cent is expected anywhere in the world in the port industry. So with this kind of development, I’m sure we can get like 13-14 per cent, which is a very fantastic thing to happen.”
He noted that Nigeria’s ports have recently gained global recognition for improved operational performance.
“As you can see, just as recently as two months ago, the Nigerian ports, especially Tin Can and Apapa, were recognised by S&P and the World Bank as among the 20 most improved ports in the world.
“We can’t be doing that as NPA alone. This is what has been missing for some time. We know that we have to come to them. They know that they have to come to us. This is something that must happen for us to make any progress. And we are achieving that, so give God the glory,” he added.
The terminal expansion is expected to significantly enhance BUA’s cargo-handling capacity in Port Harcourt, positioning the company to support rising import volumes while contributing to increased cargo throughput, higher port revenues and the broader development of Nigeria’s maritime sector.
