Nigeria secures financing to upgrade two of its busiest major seaports

Nigeria has secured just over US$990-million in UK-backed financing to upgrade and modernise two of its major seaports. The government believes this will strengthen the country’s role as an important maritime trade hub in West and Central Africa. 

The project will fund upgrades to the Lagos Port Complex in Apapa and the Tincan Island Port Complex, which together handle the majority of Nigeria’s maritime trade. 

The financing is backed by UK Export Finance and was announced during an official state visit to the United Kingdom by the President of Nigeria, Bola Ahmed Tinubu.  

It supports a Nigerian port modernisation programme valued at nearly $1-billion, which has faced implementation delays. The project includes both infrastructure expansion and the digitalisation of procedures. 

Reduce logistical pressure on ports 

“Authorities aim to reduce logistical pressure on ports that handle the majority of the country’s supply flows,” reports the Africa-focused Ecofin news agency. 

“Currently, chronic congestion and heavy reliance on road transport continue to weaken port performance. As a result, these constraints divert part of the traffic to competing regional hubs such as Cotonou, Lomé and Tema.” 

Comments Dr. Adegboyega Oyetola, the Nigerian Minister of Marine and Blue Economy: “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.  

“Through strategic partnerships such as this with the United Kingdom, we are laying the foundation for a new era of efficiency, transparency and competitiveness in Nigeria’s port system. 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. 

“Nigeria’s port operations will be transformative. 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.  

“The modernised infrastructure will enable faster clearance of imports and exports, reduce demurrage and logistics costs for businesses, significantly improve the predictability and transparency of cargo movement and generate more revenue for national development.”