The National Port Authority (NPA) has outlined plans to address an unsustainable wage bill and lack of investment in Liberia’s ports.
Friday, December 13, 2024/ In 2024, the NPA spent $14.04 million—nearly 60% of its total revenue of $24.4 million—on salaries and benefits for its 1,945 employees. Spending almost 60% of NPA’s revenue on salaries has constrained its ability to save and invest in critical infrastructure, expand operations, create sustainable jobs, and increase support to the government of Liberia.
NPA workforce grew from 450 personnel in 2018 to 1,945 workforce by 2024, leading to 266% increase in the monthly wage bill—from approximately $300,000 in 2018 to over $1.4 million in 2024—without any significant expansion in revenue or operational capacity. The most significant jump, a 47% increase, occurred during the last six months of the 2023 general elections, while the lowest rate (13%) of increase occurred in the last 11 months.
During a recent budget hearing at the House of Representatives, the Managing Director of the NPA, Hon. Sekou A.M. Dukuly, outlined plans to address these challenges. “We are committed to running a financially stable and operationally efficient port. We have implemented austerity measures, including a 64% reduction in supply costs, a 20% reduction in total operating expenses, and a 45% reduction in administrative expenses. Still, all these measures are not enough to address the challenges posed by the huge wage bill,” he explained.
To ensure long-term sustainability, the NPA management says it has designed a comprehensive plan to achieve financial stability and operational efficiency while being sensitive to the rights and livelihoods of employees. The Managing Director emphasized, “Our plan protects the rights and well-being of our staff through a fair process while we empower the NPA to save, reinvest in the ports, create more sustainable jobs, and increase the port’s contribution to Liberia’s economic growth.”
Liberia imports over 80% of its food and non-food items and relies heavily on the export of raw materials. These trade activities are conducted almost entirely through Liberia’s seaports, making their effective management and modernization essential for national development. However, Liberia’s ports have seen little investment in recent decades.
Recognizing this gap, the Managing Dukuly said his team is attracting investments to modernize the ports. Earlier this year, the NPA announced two significant port expansion and investment projects in collaboration with China and Morocco. These initiatives aim to help address the long-overdue infrastructure and capacity needs of the Monrovia and Buchanan ports, ensuring they are equipped to facilitate trade and support Liberia’s economic transformation. He said beginning 2025, more practical actions on these opportunities will be rolled out among stakeholders in the Executive and the Legislature.
The NPA management acknowledges that addressing the unstainable wage bill and the investment needs of the ports requires additional consultations to ensure they happen urgently and in ways that are fair and able to address the inefficiencies and reallocation of resources toward strategic investments to make the NPA a competitive hub that drives economic growth and job creation in Liberia. “We inherited many of these challenges but are determined to resolve them responsibly. Our focus is on building a port system that is financially viable, operationally efficient, and capable of contributing significantly to Liberia’s development,” the Managing Director stated.
