FG targets second quarter for Apapa, Tin Can ports overhaul

THE federal government has announced that rehabilitation works at the Apapa and Tin Can Island ports in Lagos are scheduled to begin in the second quarter (Q20 of 2026, with completion expected within a 48-month timeline.

This follows a £746 million export finance agreement signed on March 19 between Nigeria and the United Kingdom to support the redevelopment of the two key port facilities. As part of the arrangement, UK Export Finance (UKEF) will provide guarantees for loans used in executing the projects.

In addition, British Steel is set to supply about 120,000 tonnes of steel under a £70 million contract tied to the port upgrades. The broader deal is projected to generate roughly £236 million in supply contracts for UK firms, given that a minimum of 20 percent of project inputs will be sourced from Britain.

Special Adviser to the Minister of Marine and Blue Economy, Mr Bolaji Akinola, said in a television interview that work is expected to kick off in the next quarter now that financing has been secured through Citibank and UKEF. He expressed confidence that once construction begins, the projects will be delivered within 4 years.

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Akinola also disclosed that the upgrade will involve dredging port channels to handle bigger vessels. He explained that the current draft level of about 13 metres will be expanded to at least 16 metres, allowing ships carrying between 10,000 and 20,000 20-foot equivalent units (TEUs) to berth.

Chairman of the Shipping Association of Nigeria (SAN), Mr Boma Alabi, welcomed the development, noting that both ports have gone more than 15 years without significant upgrades despite rising trade volumes and population growth.

She pointed out that Nigeria has lost competitive advantage to neighbouring countries that have modernised their port infrastructure, stressing the economic cost of delayed investment.

Meanwhile, Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said the agreement aligns with the government’s focus on infrastructure, energy, and industrial growth. He added that stronger bilateral partnerships are key to unlocking the level of investment needed to stimulate economic expansion, generate employment, and reduce poverty under the administration’s ‘Renewed Hope’ agenda.

Details of Nigeria-UK port deal

Nigeria and the United Kingdom recently signed a £746 million ports redevelopment agreement in London to modernise key maritime infrastructure in Lagos, in what officials describe as one of the largest recent trade and investment partnerships between both countries.

The deal, backed by UK Export Finance (UKEF), will fund the refurbishment of two major facilities: the Lagos Port Complex and the Tin Can Island Port Complex. The project is expected to boost efficiency, cut cargo delays and strengthen Nigeria’s position as a leading maritime hub in West and Central Africa.

The agreement also includes a Memorandum of Understanding (MOU) between both governments to deepen future cooperation in trade, infrastructure and industrial development.

Under the arrangement, at least £236 million of the total financing will go to British companies, supporting supply chains and jobs. A key component of the deal is a £70 million contract awarded to British Steel to supply 120,000 tonnes of steel billets for the project – the firm’s largest UKEF-backed export order to date.

The financing will be delivered through UKEF’s Buyer Credit Facility, coordinated by Citibank, with Nigeria’s Nigerian Ports Authority (NPA) and the Federal Ministry of Finance as key parties to the agreement.

READ ALSO: NPA eyes Eastern ports’ upgrade to boost non-oil exports

Speaking on the development, UK Business and Trade Secretary, Mr Peter Kyle, described the deal as a major boost for British manufacturing and a reflection of growing economic ties between both nations.

Nigeria’s Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, said the port upgrade would significantly improve operational efficiency through automation and expanded capacity, reducing vessel turnaround time and cargo dwell periods.

He added that the modernisation would lower logistics costs, improve transparency in cargo movement and increase government revenue.