APM Terminals ‘contributes N186bn annually’ to Nigeria’s economy

APM Terminals in Nigeria created a total turnover of around N186.05 billion per year between 2013 and 2016, according to an impact assessment study conducted by Quantifying Business Impacts on Society (QBIS), a Denmark-based consulting firm.

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.

The study’s main objective, according to Olisen and Westergaard-Kabelmann, was to assess the socio-economic impacts and value-addition of APM Terminals’ operations in Africa’s most populous nation and largest economy. The study focused on APM Terminals’ investments in Nigeria from 2010 to 2016.

“The study finds that the direct turnover created by APM Terminals from 2013 to 2016 has created around USD44 million (N13.42 billion) of annual turnover in companies supplying goods and services to APM Terminals and around USD352 million (N107.36 billion) of annual turnover in companies supplying consumption goods to the employees of APM Terminals and its suppliers,” the report read.

“This means that APM Terminals’ business activities have created a total turnover of around USD610 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 supported about 35,000 direct, indirect and induced jobs per year in Nigeria from 2013 to 2016.

“In the period 2013 to 2016, APM Terminals employed an average of 1,196 FTEs (full time employees) per year. In the same period, APM Terminals further supported another nearly 4,800 jobs per year in the companies supplying goods and services to APM Terminals and another around 29,000 jobs per year when the people hired by APM Terminals or its suppliers spend their salaries on private consumption,” the report read.

“With these increases in production come increases in number of jobs and salaries which in turn increases households’ income and leads 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 increase employment and salaries and so forth, also referred to as induced effects.”