Tinubu Oversees £746m UK Deal to Transform Lagos Ports

President Bola Ahmed Tinubu has overseen the signing of a landmark £746 million (about $990 million) financing agreement in the United Kingdom to modernise Nigeria’s busiest seaports, in a move expected to significantly reshape the country’s maritime sector and trade efficiency.

The agreement—backed by the UK government through UK Export Finance (UKEF)—will fund the large-scale redevelopment of the Lagos Port Complex in Apapa and the Tin Can Island Port Complex, which together handle over 70 per cent of Nigeria’s imports and exports.

The deal was finalised during Tinubu’s state visit to London, where he also held high-level talks with UK Prime Minister Keir Starmer, underscoring renewed economic cooperation between both countries.

What the Deal Covers

Under the financing arrangement, the two ports will undergo a comprehensive overhaul, including:

• Deployment of modern cargo-handling equipment
• Expansion of port capacity
• Full digitalisation and automation of operations
• Upgrading of ageing infrastructure

The project will be coordinated by Citibank and executed with support from international contractors, including Hitech Nigeria and ITB Nigeria.

In addition, Nigeria plans to roll out a National Single Window platform to streamline cargo processing, reduce paperwork, and centralise port operations digitally.

Economic and Trade Impact

Officials say the modernisation will address long-standing challenges at the ports, including congestion, delays, and high logistics costs that have weakened Nigeria’s competitiveness and diverted cargo traffic to neighbouring countries such as Ghana and Benin Republic.

With automation and expanded infrastructure, vessel turnaround time and cargo clearance are expected to improve significantly, while businesses could see reduced demurrage and faster movement of goods.

The Federal Government also believes the project will boost revenue generation, enhance transparency, and position Nigeria as a leading maritime hub in West and Central Africa.

UK–Nigeria Strategic Benefits

The agreement is not only a major infrastructure boost for Nigeria but also a significant commercial opportunity for the United Kingdom. At least £236 million of the deal is tied to contracts for British companies, including a £70 million supply deal for British Steel—one of the largest export orders supported by UKEF.

The deal forms part of a broader UK–Nigeria partnership framework aimed at deepening trade, investment, and long-term economic collaboration between both countries.

A Long-Overdue Upgrade

Industry experts note that this marks the most ambitious upgrade of Nigeria’s port infrastructure in nearly five decades, as both Apapa and Tin Can ports have operated for decades with limited modernisation despite handling the bulk of the nation’s cargo traffic.

With implementation expected to commence following the agreement, stakeholders say the success of the project will be critical to unlocking Nigeria’s marine and blue economy and improving the ease of doing business across the country.

In addition, the deal is expected to generate significant business for British firms, with supply contracts linked to the project estimated at over £200 million.
Reuters

Officials say the initiative represents the most ambitious upgrade of Nigeria’s port infrastructure in decades and forms a critical part of the Federal Government’s broader strategy to unlock the economic potential of the marine and blue economy.