Nigeria and UK Seal £746m Deal to Modernize Apapa and Tin Can Ports

In an effort to modernize two of Nigeria’s largest marine hubs, Nigeria and the UK signed a historic £746 million (about $997 million) ports infrastructure contract yesterday. This action is anticipated to increase trade, generate jobs, and strengthen bilateral economic connections.

Additionally, according to President Bola Tinubu, Nigeria and the UK need to expand mutually beneficial economic collaboration and strengthen trade links in order to build on their longstanding partnership.

According to a statement from Tinubu’s spokesperson, Bayo Onanuga, the two nations reached an agreement to renovate two significant ports in Lagos during Tinubu’s meeting with UK Prime Minister Sir Keir Starmer at Downing Street.

The President called his first state visit to the UK in 37 years “very thrilling and significant” in terms of bolstering bilateral ties between the two countries.

The Nigerian leader stated in Downing Street before to bilateral talks, “We cannot forget the institutional development we have enjoyed over the years,” pointing out that the topics of discussion included trade, the economy, climate change, terrorism, and broader global issues.

“We will talk more about Nigeria’s recent economic reforms in our bilateral talks. The globe is facing difficulties right now. Nigeria is not exempt from global events. I’ve seen your responses to some developments on TV.

The Nigerian leader stated, “As you correctly pointed out, my response is the economy and the welfare of the people and how we should work together to improve the livelihood of our people.”

Prime Minister Starmer emphasized the importance of the State Banquet that the King threw in honor of the Nigerian delegation and called the visit historic.

He reiterated how much the UK values its long-standing relationship with Nigeria, especially the strong interpersonal relationships that continue to bolster both societies.

He pointed out that both nations already work closely together in areas like security, defense, and the economy, and he stated that the recently signed agreements on trade and commercial dealings show a shared commitment to expanding participation on international issues and strengthening cooperation.

Later, President Bola Tinubu and his wife Oluremi Tinubu attended the £746 million deal for the modernization of the infrastructure at the Apapa and Tin Can Island ports in Lagos at Lancaster House.

Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, and Blair McDougall, UK Minister for Small Business and Economic Transformation and Parliamentary Under-Secretary of State, signed the agreement on behalf of the British government.

According to Edun, the accords align with Nigeria’s focus on industrial development, energy, and infrastructure.

In keeping with the administration’s “Renewed Hope Agenda,” he pointed out that the growing focus on bilateral relationships will aid in luring the kind of investment needed to increase economic activity, create jobs, and lower poverty.

According to him, the agreements demonstrated the two nations’ developing mutual trust and confidence as well as their shared commitment to producing real economic results for Nigeria and the UK.

The deal, which was completed yesterday, would use a financing package guaranteed by UK Export Finance (UKEF) to finance the renovation of the Lagos Port Complex (Apapa Quays) and the Tin Can Island Port Complex.

Delivered under UKEF’s Buyer Credit Facility and overseen by Citibank N.A.’s London Branch, the initiative is anticipated to boost both nations’ economies by hundreds of millions of pounds and sustain thousands of skilled employment.

British companies would receive contracts worth at least £236 million under the arrangement, including a record £70 million steel supply deal given to British Steel. For the port improvements, the company will supply 120,000 tons of steel billets to the construction companies Hitech Nigeria and ITB Nigeria.

According to UK Secretary of State for Business and Trade Peter Kyle, the deal will significantly improve UK-Nigeria relations and British industry.

“This is a significant victory for British Steel, made possible by UK Export Finance, hot on the heels of our historic Steel Strategy, which is testament to the quality of UK-made steel and the booming UK-Nigeria relationship,” he stated.

According to Adegboyega Oyetola, Nigeria’s Minister of Marine and Blue Economy, the program is in line with the federal government’s goal of realizing the maritime industry’s full potential.

“Nigeria has made significant progress with the modernization and upgrading of its ports. We are setting the groundwork for a new era of efficiency, transparency, and competitiveness in Nigeria’s port system through strategic alliances like this one with the UK,” he stated.

In addition to improving transparency and increasing government revenue, Oyetola stated that the use of digital and automated systems and modernized infrastructure would drastically cut down on logistical expenses, cargo stay times, and vessel turnaround times.

Both nations also signed a Memorandum of Understanding (MoU) to investigate potential future trade and investment opportunities as part of the larger engagement. Nigeria’s priority project pipeline was defined in the framework, which also called for further UKEF-backed funding. UK suppliers were expected to play a major role.

Additionally, Allan Bell, the CEO of British Steel, called the contract a “record-breaking” achievement for the business.

He declared, “This deal represents us moving from stabilization to building long-term sustainability for the business… it marks a tremendous vote of confidence in British Steel and UK manufacturing.”

Richard Hodder, Global Head of Export and Agency Financing at Citi, also commented, pointing out that the financing arrangement was one of the biggest export credit agency-backed facilities in West Africa.

“Citi has been in Nigeria for more than 40 years and is thrilled to assist the Federal Government of Nigeria and the Nigerian Ports Authority in funding this vital infrastructure project,” he said.

In a similar vein, Tim Reid, CEO of UK Export Finance, stated that the agreement highlighted the expanding trade ties between the two nations.

“This agreement is a significant milestone for trade relations between the United Kingdom and Nigeria. It also establishes the groundwork for a more comprehensive, long-term partnership that will create opportunities for British exporters throughout the region,” he stated.

In response to growing demand for long-term infrastructure investment and varied trade ties, UKEF has raised its financial support for West and Central Africa by more than £3 billion since 2018.
It discovered that more than two-thirds of the country’s goods commerce is handled by the TinCan Port, which began operations in 1977, and the Apapa Port, which was constructed during British administration in the early 1920s.