Amanze Chinonye
Nigeria and the United Kingdom have sealed a £746 million ($902 million) financing agreement to modernise two of the country’s busiest seaports in Lagos, a move expected to boost trade efficiency and deepen bilateral economic ties, Prime Business Africa reports.
The deal, backed by UK Export Finance (UKEF), will fund the rehabilitation of the Lagos Port Complex (Apapa Quays) and Tin Can Island Port Complex. The project is being executed in partnership with the Nigerian Ports Authority and Nigeria’s Federal Ministry of Finance.
At least £236 million of the financing is earmarked for British suppliers, with British Steel securing a record £70 million contract to supply 120,000 tonnes of steel billets.
Join our WhatsApp ChannelThe port upgrades are expected to significantly improve cargo handling capacity and ease longstanding bottlenecks at Nigeria’s key maritime gateways.
Minister of Marine and Blue Economy, Adegboyega Oyetola, said the project represents a major step toward unlocking the country’s marine economy. He noted that modernised infrastructure, supported by digitalised and automated systems, would enhance efficiency, transparency and competitiveness.
Industry projections indicate that vessel turnaround times and cargo dwell periods will decline sharply as automated processes replace manual, paperwork-heavy procedures. The upgrades are also expected to reduce logistics costs for businesses and boost government revenue.
The agreement delivers a significant boost to the UK’s manufacturing sector, particularly the steel industry. Peter Kyle said the contract underscores the strength of UK–Nigeria trade relations and highlights global demand for British-made steel.
Chief Executive of British Steel, Allan Bell, described the deal as one of the largest in the company’s history, marking a transition from recent stabilisation efforts to long-term sustainability.
The agreement coincides with high-level talks in London between UK Prime Minister Keir Starmer and Nigerian President Tinubu, focused on strengthening the UK–Nigeria Strategic Partnership.
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Alongside the ports deal, both countries are expected to sign a Memorandum of Understanding outlining future collaboration on infrastructure, trade and investment. The framework will identify priority projects in Nigeria eligible for UKEF-backed financing, further opening opportunities for UK companies.
Citibank acted as coordinator and arranger for the financing through UKEF’s Buyer Credit Facility, in what officials describe as one of the largest export credit-supported deals in West Africa.
UKEF said its support for West and Central Africa has grown by more than £3 billion since 2018, reflecting increasing demand for diversified trade partnerships and long-term investment across the region.
The agreement is expected to strengthen investor confidence in Nigeria’s infrastructure pipeline and reinforce its position as a key maritime hub in West and Central Africa.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
