New study says APM Terminals contributes N186bn annually to Nigeria’s economy
APM Terminals, one of the leading global port operators in Nigeria, created a total turnover of about $610 million (N186.05 billion) per year to the Nigerian economy from 2013 to 2016, an impact assessment study conducted by Quantifying Business Impacts on Society (QBIS), a Denmark-based consulting firm, has revealed.
The study titled “Nigerian Trade Stimulator – How APM Terminals in Nigeria have Impacted Trade, Creating Jobs and Ensuring a Sustainable Business Environment,” was conducted by Mette Dalgliesh Olsen and Thomas Westergaard-Kabelmann.
According to Olisen and Westergaard-Kabelmann, the objective of the study was to assess the socio-economic impact and value-addition of APM Terminals’ operations in Africa’s largest economy. The study focused on APM Terminals’ investments in Nigeria from 2010 to 2016.
“The direct turnover created by APM Terminals from 2013 to 2016 has created close to $44 million (N13.42 billion) of annual turnover to companies supplying goods and services to APM Terminals and another $352 million (N107.36 billion) of annual turnover to those supplying consumption goods to the employees of APM Terminals and its suppliers,” the authors said.
This, according to the study, means that APM Terminals’ business activities have created a total turnover of about $610 million ((N186.05 billion) per year to the Nigerian economy in the period from 2013 to 2016.”
The study also stated that APM Terminals has enabled about 35,000 direct, indirect and induced jobs per year in Nigeria from 2013 to 2016.
“From 2013 to 2016, APM Terminals employed an average of 1,196 FTEs (full time employees) per year. It further supported close to 4,800 jobs per year in the companies supplying goods and services to APM Terminals and 29,000 jobs per year when the people hired by APM Terminals or its suppliers spend their salaries on private consumption,” the study further stated.
It also stated that the operations of APM Terminals has impacted positively on trade in Nigeria, leading to an increase in manufactured export by up to 15 percent corresponding to about $0.5 billion (N152.5 billion) from 2006 to 2009.
The study indicates increasing Foreign Direct Investment in the country and increased non-oil exports, in line with the ambition of the Federal Government.
“With increases in production, jobs and salaries which in turn increases households’ income and led to increased private consumption. This led to increase in demand from the sectors delivering goods and services for private consumption, which in turn increased employment and salaries, resulting to induced effects,” the study stated.
Following the Nigerian port reforms, APM Terminals initially invested $220 million in a comprehensive terminal upgrade in Apapa, but has since 2011, put in additional $135 million to increase the capacity of its terminal in Apapa.
AMAKA ANAGOR