The Nigerian Ports Authority (NPA) plans to spend 62 per cent of its revenue on capital projects in the 2026 fiscal year. This disclosure was made by NPA Managing Director Abubakar during the agency's budget presentation to the Senate Committee on Marine Transport. The move follows a N700 billion revenue remittance to the federal government in 2023, underscoring the agency's improved financial performance. The proposed capital expenditure will target port infrastructure upgrades, including equipment acquisition and terminal modernisation. Abubakar stated that the investment is aimed at boosting cargo handling capacity and reducing congestion at major ports. The NPA recorded a 40 per cent increase in revenue between 2022 and 2023, attributed to reforms and improved port efficiency. The budget defence outlined that recurrent expenditure would be limited to 38 per cent of total revenue.
Spending 62% of revenue on capital projects sounds ambitious, but the NPA has previously struggled with project execution despite high revenue inflows. Abubakar's plan hinges on the assumption that past inefficiencies have been resolved, yet there is no track record of timely delivery on such promises. If this budget follows the pattern of earlier ones, Nigerian ports may see more plans than progress. The real test is whether cranes are installed, not just funded.
