UK backs $902m Lagos Ports upgrade with £746m financing deal

The United Kingdom and Nigeria have sought to overhaul two of Nigeria’s busiest seaports, with a £746 million ($902 million) financing deal, in a bid to boost trade efficiency, create jobs, and deepen bilateral economic ties.

The deal, backed by UK Export Finance (UKEF), will fund the rehabilitation of the Lagos Port Complex (Apapa Quays) and the TinCan Island Port Complex, two critical gateways for Nigeria’s imports and exports.

According a statement by British High Commission, arranged through a Buyer Credit Facility and coordinated by Citibank’s London branch, the agreement involves Nigeria’s Nigerian Ports Authority (NPA) and the Federal Ministry of Finance.

UKEF will act as guarantor, enabling access to long-term financing for the infrastructure upgrade.

According to the Commission, the project will support thousands of skilled jobs in both countries while modernising Nigeria’s port operations.

“At least £236 million of the total contract value is earmarked for British suppliers, underscoring the deal’s significance for UK manufacturing.

“A major beneficiary is British Steel, which secured a record £70 million contract to supply 120,000 tonnes of steel billets for the project, its largest UKEF-backed export order to date.

“The materials will be used by construction firms Hitech Construction Company Nigeria and ITB Nigeria Limited executing the port upgrades”, the statement read.

Peter Kyle, UK Business and Trade Secretary described the deal as a “major win” for British industry, noting it reflects growing commercial ties between both nations and reinforces confidence in UK-made steel.

Adegboyega Oyetola, Nigeria’s Minister of Marine and Blue Economy, said the modernisation would mark a turning point for the country’s maritime sector.

According to him, the upgrades will introduce automated and digitalised systems aimed at reducing vessel turnaround times, cutting cargo dwell periods, and eliminating long-standing bottlenecks.

“This is expected to lower logistics costs, reduce demurrage, and improve transparency in cargo handling”, he added.

He added that enhanced infrastructure and efficiency would strengthen Nigeria’s position as a leading maritime hub in West and Central Africa, while boosting government revenue and supporting broader economic development.

“Alongside the financing deal, both countries are set to sign a Memorandum of Understanding (MoU) to explore further trade and investment opportunities.

“The framework will outline Nigeria’s priority projects eligible for UKEF support, paving the way for deeper collaboration across infrastructure and other sectors.

“The agreement signals a long-term commitment by both governments to expand economic cooperation and attract international investment into Nigeria’s critical infrastructure.

“The deal also highlights UKEF’s expanding footprint in Africa. Since 2018, the agency has increased its support for West and Central Africa by more than £3 billion, reflecting rising demand for diversified trade partnerships”, the statement added.

Tim Reid, UKEF Chief Executive said the transaction demonstrates the agency’s capacity to unlock “transformational opportunities” while supporting sustainable growth in emerging markets.

Similarly, Richard Hodder, Global Head of Export and Agency Financing at Citi, described the project as one of the largest export credit-backed facilities in West Africa, noting its long-term economic benefits for Nigeria.