Nigeria and the United Kingdom have sealed a £746 million infrastructure financing agreement to rehabilitate and modernise two of Nigeria’s busiest seaports in Lagos, in a move aimed at boosting maritime efficiency and strengthening bilateral trade relations.
The agreement will fund the comprehensive upgrade of the Lagos Port Complex and the Tin Can Island Port Complex, key facilities that handle a significant portion of Nigeria’s international cargo traffic.
The financing is backed by UK Export Finance through its Buyer Credit Facility, with Citibank coordinating the arrangement via its London branch.
Implementation of the project will be carried out in partnership with the Nigerian Ports Authority and the Federal Ministry of Finance.
Officials said the redevelopment will introduce modern port infrastructure, digital cargo handling systems and automated processes designed to improve cargo clearance timelines and address longstanding congestion challenges at the ports.
Minister of Marine and Blue Economy, Adegboyega Oyetola, described the initiative as a major milestone in the federal government’s efforts to unlock the potential of Nigeria’s marine and blue economy. He noted that the modernisation would enhance operational efficiency, shorten vessel turnaround time and significantly reduce cargo dwell periods.
According to him, the upgrades are expected to lower logistics costs, reduce demurrage, improve transparency in cargo movement and boost revenue generation for national development. The project is also projected to strengthen Nigeria’s position as a maritime hub for West and Central Africa.
The deal is expected to deliver commercial benefits for British firms, with at least £236 million in supply contracts earmarked for UK-based companies. British Steel is set to supply 120,000 tonnes of steel billets to construction firms handling the project, including Hitech Construction Africa Ltd and ITB Nigeria.
The £70 million supply contract represents the largest export order supported by UK Export Finance for British Steel and one of the company’s biggest billet deals to date.
UK Secretary of State for Business and Trade, Peter Kyle, said the agreement underscores the strength of UK–Nigeria economic ties and highlights growing global demand for British industrial expertise. He added that the deal would support jobs across the UK steel supply chain while reinforcing the competitiveness of British manufacturing.
In a related development, both countries are expected to sign a Memorandum of Understanding to deepen cooperation in trade, infrastructure and investment. The framework will outline Nigeria’s pipeline of priority projects eligible for UK-backed financing and technical support.
Chief Executive Officer of UK Export Finance, Tim Reid, said the agreement demonstrates the agency’s capacity to unlock large-scale international projects that deliver mutual economic benefits.
Analysts say the partnership sends a strong signal to global investors about Nigeria’s commitment to modernising critical infrastructure and enhancing its role in global trade.
Upon completion, the port upgrades are expected to create thousands of skilled jobs, ease logistics bottlenecks and significantly improve the efficiency of Nigeria’s maritime supply chain.
