Nigeria, UK Seal £746m Landmark Deal to Rebuild Lagos Ports, Deepen Trade Partnership

Michael Olugbode in Abuja

Nigeria and the United Kingdom have sealed a landmark £746 million infrastructure financing agreement aimed at overhauling two of Nigeria’s busiest seaports in Lagos, in a move expected to significantly boost maritime efficiency, reduce trade bottlenecks and strengthen bilateral economic ties.

The financing arrangement will fund the comprehensive rehabilitation and modernisation of the Lagos Port Complex and the Tin Can Island Port Complex, two critical gateways that handle a large share of Nigeria’s international cargo traffic.

The deal is backed by UK Export Finance, the United Kingdom’s export credit agency, which is guaranteeing the loan through its Buyer Credit Facility, with Citibank coordinating and arranging the financing through its London branch.

Under the agreement, the project will be implemented in partnership with the Nigerian Ports Authority and Nigeria’s Federal Ministry of Finance.

Officials said the redevelopment will introduce modern port infrastructure, digitalised cargo handling systems and automated operational processes designed to dramatically improve cargo clearance timelines and reduce congestion that has long plagued Nigeria’s busiest ports.

Nigeria’s Minister of Marine and Blue Economy, Adegboyega Oyetola, described the initiative as a major milestone in the federal government’s strategy to unlock the vast potential of Nigeria’s marine and blue economy.

According to him, the modernisation effort will transform port operations, shorten vessel turnaround time and drastically reduce cargo dwell periods as manual and paperwork-heavy procedures are replaced with automated systems.

He said the improved infrastructure would enable faster clearance of imports and exports, lower demurrage and logistics costs for businesses, enhance transparency in cargo movement and increase revenue generation for national development.

The project is also expected to strengthen Nigeria’s position as a leading maritime hub for West and Central Africa by expanding port capacity and improving operational efficiency.

Beyond its impact on Nigeria’s maritime sector, the deal will also provide significant commercial opportunities for British companies.

At least £236 million of the project’s supply contracts are expected to go to UK-based firms. As part of the arrangement, British Steel will deliver 120,000 tonnes of steel billets to construction giants Hitech Construction Africa Ltd and ITB Nigeria, which are involved in executing the port redevelopment.

The supply contract, valued at £70 million, represents the largest export order supported by UK Export Finance for British Steel and one of the biggest billet contracts in the company’s history.

UK Secretary of State for Business and Trade, Peter Kyle, said the agreement demonstrates the strength of the UK–Nigeria economic partnership and reflects growing global demand for British industrial expertise.

He noted that the deal, coming shortly after the UK government unveiled a new national steel strategy, would help reinforce the international competitiveness of British manufacturing while supporting jobs across the steel supply chain.

In a related development, both countries are expected to sign a Memorandum of Understanding (MoU) establishing a framework for deeper collaboration in trade, infrastructure and investment.

The agreement will outline Nigeria’s pipeline of priority projects that could benefit from UK-backed financing and technical support, while opening new opportunities for British exporters and suppliers to participate in major infrastructure development initiatives.

Chief Executive Officer of UK Export Finance, Tim Reid, said the deal highlights the agency’s ability to unlock large-scale international projects that benefit both British businesses and partner economies.

He added that the agreement would help lay the foundation for a stronger long-term trade and investment relationship between Nigeria and the United Kingdom.

Analysts say the partnership also sends a positive signal to global investors, demonstrating Nigeria’s commitment to modernising critical infrastructure and strengthening its position in international trade.

Once completed, the port upgrades are expected to support thousands of skilled jobs in both countries, ease longstanding logistics challenges and significantly improve the efficiency of Nigeria’s maritime supply chain.