BUA Commits $85m to Port Expansion, Eyes 2m-Tonne Imports

BUA Group has announced an investment of about $85 million to expand its BUA Ports and Terminals facility in Port Harcourt as it prepares to handle more than two million tonnes of imported raw materials annually for its expanding food business.

Chairman of BUA Group, Abdul Samad Rabiu, disclosed this during a visit to the Managing Director of the Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, at the Authority’s headquarters in Lagos. He said the visit was to appreciate the support received from the NPA and update its management on the progress of the expansion project.
Rabiu explained that work on the expansion has advanced significantly and is vital to supporting the rapid growth of BUA Foods in Port Harcourt.
“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,” he said.
According to him, the company has made substantial progress and is seeking continued support from the Authority.
“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 added.
He noted that BUA Foods is undergoing a major expansion programme and that efficient port infrastructure is essential to sustaining its operations.
“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.
Rabiu said the port expansion project is valued at about $85 million and will provide approximately 600 metres of seaside frontage.
“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.
He added that the expanded terminal would strengthen BUA’s logistics network as the company continues to grow across its food, cement, mining, infrastructure and other industrial businesses.
Rabiu stressed that Nigeria’s economic potential can only be fully realised through improved port infrastructure, noting that the country still trails major economies in that regard.
“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.
He commended the management of the NPA for its professionalism and dedication and also thanked President Bola Tinubu for appointing the current leadership.
Reflecting on the history of the Port Harcourt terminal, Rabiu recalled that the acquisition had once been revoked but said the support of the current NPA management had enabled the project to move forward successfully.
“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.
Speaking separately, the Managing Director of the Nigerian Ports Authority, Dr. Abubakar Dantsoho, projected double-digit growth in cargo throughput and revenue from the $85 million investment in the Port Harcourt port and terminal facilities.
He described the investment as a major boost to trade and the development of Nigeria’s eastern ports, saying it would increase cargo volumes, generate more revenue and strengthen the competitiveness of Nigerian ports.
According to Dantsoho, the Authority remains committed to working closely with investors to improve port efficiency and unlock greater economic value.
“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,” he said.
“You know, we need Nigeria to, in the port system, to be 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 commended President Bola Tinubu for encouraging stronger collaboration between the NPA and private sector 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.
On the expected impact of the project, the NPA boss said the investment would drive significant growth 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 anticipated increase in port activity, 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 also noted that Nigeria’s ports have recently recorded significant improvements in global rankings.
“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 expansion is expected to provide about 600 metres of quay frontage, significantly increasing BUA’s cargo-handling capacity in Port Harcourt and positioning the company to support its rising import volumes and broader industrial growth strategy.