Port operator, APM Terminals, yielded a total turnover of about $610 million (N186.05 billion) per year to the Nigerian economy from 2013 to 2016, a Denmark-based consulting firm, Quantifying Business Impacts on Society (QBIS), said in a report.
It also supported about 35,000 direct, indirect and induced jobs per year within the period. These comprised an average of 1,196 full-time employees (FTEs), about 4,800 jobs in the companies supplying goods and services to it, and about 29,000 jobs through its workers and suppliers’ private consumption from their salaries.
The study, which was an assessment of the socio-economic impacts and value-addition of APM Terminal’s operations in Nigeria, focused on its investments in the country from 2010 to 2016.
According to the study titled, “Nigerian Trade Stimulator – How APM Terminals in Nigeria have impacted trade, creating jobs and ensuring a sustainable business environment,” its direct turnover from 2013 to 2016 “created around $44 million (N13.42 billion) of annual turnover in companies supplying goods and services to APM Terminals.”
It also created “about $352 million (N107.36 billion) of annual turnover in companies supplying consumption goods to the employees of APM Terminals and its suppliers,” meaning that its business activities created a total turnover of about $610 million ((N186.05 billion) per year to the Nigerian economy in the period in view.
According to the study, the company’s operations also impacted positively on trade, leading to an increase in Nigeria’s manufactured export by up to 15 per cent (about $0.5 billion or N152.5 billion) from 2006 to 2009.
QBIS noted that with the Nigerian port reforms, APM Terminals initially invested $220 million in a comprehensive terminal upgrade in Apapa but has since 2011 invested an additional $135 million to increase the terminal’s capacity, according to the research by Mette Dalgliesh Olsen and Thomas Westergaard-Kabelmann.
The report further indicated an increase in Foreign Direct Investment impact and non-oil export, adding that with the increase in production comes increase in jobs and salaries, and in turn income for households, leading to increased private consumption.
“This increased private consumption leads to a further increase in demand from the sectors delivering goods and services for private consumption, which in turn again increases employment and salaries and so forth, also referred to as induced effects,” the study stated.