In a major boost to Nigeria’s maritime infrastructure and bilateral trade ties, the Federal Government has signed a £746 million (approximately $1 billion) export finance agreement with the United Kingdom to redevelop two of the nation’s busiest seaports — the Lagos Port Complex (Apapa Quays) and the Tin Can Island Port Complex.
The deal, facilitated through the UK Export Finance (UKEF) Buyer Credit Facility and arranged by Citi, was announced on Thursday, March 19, 2026, during President Bola Ahmed Tinubu’s state visit to London, where he held bilateral talks with UK Prime Minister Keir Starmer.
Under the agreement, the funds will support the comprehensive refurbishment and modernisation of critical port infrastructure, including quay wall strengthening, channel deepening, installation of modern cargo-handling equipment, and the introduction of automated, digitalised processes to replace cumbersome paperwork.
SkyKapital acts as the financial advisor on the Nigerian side for the transaction. Legal advisors for the deal include international firm Mayer Brown, alongside leading Nigerian law firms Aluko & Oyebode and TEMPLARS. Hitech Nigeria and ITB Nigeria will play leading roles in the execution.
This latest ports upgrade comes shortly after another significant development in Nigeria’s maritime sector: on March 11, 2026, global shipping giant MSC Group signed a 45-year concession agreement with Nigerdock to develop, operate and maintain a state-of-the-art container terminal at Snake Island Port in Lagos.
Nigerian officials say the UK-backed Apapa and Tin Can modernisation project will significantly reduce vessel turnaround and cargo dwell times, ease longstanding bottlenecks, lower demurrage and logistics costs for businesses, improve transparency in cargo clearance, and strengthen Nigeria’s position as a leading maritime hub in West and Central Africa.
A key highlight of the £746 million deal is the substantial participation of British companies. At least £236 million in supplier contracts will flow to UK firms, including a record-breaking £70 million contract for British Steel, which will supply 120,000 tonnes of steel billets to Nigerian construction giants Hitech Nigeria and ITB Nigeria. This represents British Steel’s largest export order backed by UKEF and aligns with the UK’s newly launched Steel Strategy aimed at revitalising the sector.
Alongside the financing deal, the two countries signed a Memorandum of Understanding (MoU) to explore future trade and investment opportunities, with Nigeria outlining a pipeline of priority projects that could attract further UKEF support.
The deal is expected to support thousands of skilled jobs in the UK while delivering long-term economic benefits to Nigeria through improved port efficiency and increased revenue generation for national development.
Posts
