Nigeria and the United Kingdom have signed a landmark £746 million (£1.4 billion) financing agreement to redevelop the Lagos Port Complex (Apapa Quays) and TinCan Island Port Complex, two of the nation’s busiest but ageing seaports. The agreement, signed during President Bola Tinubu’s recent state visit to the UK, marks a significant step toward addressing decades of congestion and inefficiency that have hampered Nigeria’s maritime trade.
The financing will be provided through the UK Export Finance’s (UKEF) Buyer Credit Facility, coordinated by Citibank, with oversight from the Nigerian Ports Authority (NPA) and the Federal Ministry of Finance. Part of the deal stipulates that at least £236 million be spent on UK goods and services, reinforcing the trade link while ensuring that British suppliers participate directly in the port upgrades. Richard Hodder, Citi’s global head of export and agency financing, described the deal as “one of the largest Export Credit Agency supported Buyer Credit Facilities ever seen in West Africa.”
A major beneficiary of the agreement is British Steel, which secured a £70 million contract to supply 120,000 tonnes of steel billets to Nigerian construction firms Hitech Nigeria and ITB Nigeria for the port redevelopment. UK Business and Trade Secretary Peter Kyle called it “a major win for British Steel,” highlighting the project’s significance for British jobs and industrial revival. Allan Bell, CEO of British Steel, noted that the contract was “record-breaking” and would boost employment and supply chains in Scunthorpe, England.
For Nigeria, the ports modernization promises transformative operational benefits. Adegboyega Oyetola, Minister of Marine and Blue Economy, said the upgrades would reduce vessel turnaround times, cut cargo dwell periods, and replace paperwork-heavy processes with automated systems. Currently, vessels at Nigerian ports take five to seven days to unload, compared to two to three days in Lome and three to four in Tema, with cargo dwell times between 10 and 18 days—well above global best practices of three to five days.
While specific timelines and financing terms were not disclosed, the project is expected to generate long-term economic benefits, improve predictability in cargo movement, and increase port revenues. During the visit, Nigeria and the UK also signed a Memorandum of Understanding to explore future collaborations, providing a framework for additional projects supported by UKEF, with the UK benefiting through continued supply chain participation.
source: Business day