The United Kingdom and Nigeria have finalized a historic £746 million ($902m) financing agreement to transform Nigeria’s maritime infrastructure, marking a major milestone in bilateral trade.
The deal, announced during a high-profile visit by Nigerian President Bola Ahmed Tinubu to Downing Street, is set to modernize the Lagos Port Complex (Apapa Quays) and the TinCan Island Port Complex.
Supported by UK Export Finance (UKEF) and coordinated by Citibank, the investment guarantees that at least £236 million in supplier contracts will be directed to British companies. This influx of capital is expected to support thousands of skilled manufacturing jobs across the UK while drastically improving cargo efficiency in West Africa.
Record-Breaking Order for British Manufacturing
A centerpiece of the agreement is a £70 million contract for British Steel, the largest export order in the company’s history backed by UKEF. The steel giant will supply 120,000 tonnes of steel billets to Hitech Nigeria and ITB Nigeria for the port redevelopments. This massive order aligns with the UK Government’s newly launched Steel Strategy, aimed at revitalizing the sector through high-value international projects.
“This is a record-breaking contract for British Steel and a major boost to our 4,000 employees,” said Allan Bell, CEO of British Steel. “It represents us moving from stabilization to building long-term sustainability for the business. As the biggest order we have ever secured with UK Export Finance, it demonstrates how we are working with the UK Government to meet the global demand for our products.”
Transforming Nigeria’s Maritime Economy
The refurbishment of the Lagos and TinCan Island ports is expected to end longstanding bottlenecks by replacing paperwork-heavy procedures with automated, digital processes. Nigerian officials anticipate that these upgrades will sharply reduce vessel turnaround times and cargo dwell times, positioning the nation as a premier maritime hub.
Dr. Adegboyega Oyetola, Nigerian Minister of Marine and Blue Economy, emphasized the strategic importance of the project, stating that the modernization aligns with the Federal Government’s commitment to unlocking the blue economy. He noted that the partnership creates a foundation for enhanced transparency and competitiveness within the Nigerian port system.
A New Era of Trade Relations
Beyond the immediate port projects, the two nations have signed a Memorandum of Understanding (MOU) to establish a framework for future collaboration. The MOU outlines a pipeline of priority projects in Nigeria that will seek further UKEF support, signaling a long-term commitment to infrastructure and sustainable growth.
Business and Trade Secretary Peter Kyle hailed the deal as a major win for the UK-Nigeria relationship. “Through our new Strategy, we’re backing British steelmakers for long-term success at home and abroad,” Kyle noted, adding that the contract reinforces British expertise while fueling economic growth in regions like Scunthorpe.
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