The United Kingdom and Nigeria have signed a landmark £746 million ports redevelopment agreement aimed at modernising key maritime infrastructure in Lagos and strengthening bilateral trade ties, according to an official press release issued Thursday.
The deal, backed by UK Export Finance, will fund the refurbishment of two of Nigeria’s major ports, the Lagos Port Complex at Apapa Quays and the TinCan Island Port Complex. It is expected to support thousands of skilled jobs across both countries while unlocking significant economic benefits.
The agreement, signed on Thursday 19 March, also includes a new Memorandum of Understanding between both governments to deepen future trade, investment and industrial collaboration.
According to the press release, “Thousands of skilled UK and Nigerian jobs will be supported and hundreds of millions invested into the economy as a historic financing deal is signed today [Thursday 19 March] between the UK and Nigeria.”
At least £236 million from the total package will be directed towards British companies, including a record £70 million contract awarded to British Steel to supply 120,000 tonnes of steel billets for the project.
UK Business and Trade Secretary, Peter Kyle, described the deal as a major boost for British industry and bilateral relations.
“Hot on the heels of our landmark Steel Strategy, this is a major win for British Steel made possible by UK Export Finance which is testament to the quality of UK made steel and the booming UK Nigeria relationship,” he said.
“Through our new Strategy we’re backing British steelmakers for long term success at home and abroad, and this contract will reinforce British Steel’s world class expertise while supporting jobs and growth in Scunthorpe.”
Nigeria’s Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, said the project aligns with the government’s broader economic goals and will significantly improve port operations.
“The modernisation and upgrading of Nigeria’s ports represents a major step forward for the country and aligns closely with the Federal Government’s commitment to unlocking the full potential of the marine and blue economy,” he said.
He added, “Modern infrastructure, supported by digitalised and automated processes, will transform the way our ports operate and strengthen Nigeria’s position as a leading maritime hub in West and Central Africa.”
Oyetola further highlighted expected operational improvements, stating, “Turnaround times for vessels and cargo dwell times within the ports are projected to fall sharply as automated processes replace paperwork heavy procedures and as expanded capacity removes longstanding bottlenecks.”
British Steel CEO Allan Bell described the contract as historic for the company and its workforce.
“This is a record breaking contract for British Steel and a major boost to our 4,000 employees and many more people in our supply chains,” he said.
“As one of the largest ever orders for billet in the history of this company, it marks a tremendous vote of confidence in British Steel and UK manufacturing.”
The financing arrangement is being coordinated by Citibank, which has operated in Nigeria for over 40 years. Richard Hodder, Citi’s Global Head of Export and Agency Financing, said the deal would deliver “significant economic benefits to the Nigerian economy over the coming years.”
The agreement also signals growing UK engagement in West and Central Africa, with UK Export Finance support in the region increasing by over £3 billion since 2018.
UKEF Chief Executive Tim Reid said the deal underscores long term ambitions for deeper economic ties.
“This deal represents a milestone for UK Nigeria trade relations and demonstrates the full capacity of UK Export Finance to unlock transformational opportunities for British businesses, while supporting sustainable economic growth in key markets,” he said.
The press release noted that the agreement, alongside the new Memorandum of Understanding, sends a strong signal to global investors that Nigeria remains open to trade and investment, with improved infrastructure expected to enhance efficiency, reduce logistics costs and boost revenue generation.
Faridah Abdulkadiri
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