Nigeria, UK seal £746m loan deal to revamp Tin Can, Apapa ports

Nigeria and the United Kingdom have finalised a £746 million export finance agreement to support the redevelopment of two major port complexes in Lagos.

The deal was announced following a meeting between President Bola Tinubu and UK Prime Minister, Keir Starmer at Downing Street in London on Thursday, according to reports.

Under the arrangement, UK Export Finance (UKEF) will guarantee loans for the rehabilitation of the Apapa and Tin Can Island port complexes, with Citibank expected to coordinate the financing.

As part of the agreement, British Steel will supply 120,000 tonnes of steel for the projects under a contract valued at £70 million.

The deal is projected to generate about £236 million in supplier contracts for British firms, with at least 20 percent of project components required to be sourced from the UK.

The UK government noted that the steel contract represents the largest export backed by UKEF for British Steel.

UK Trade Secretary, Peter Kyle, said the agreement would “reinforce British Steel’s world-class expertise while supporting jobs and growth in Scunthorpe”.

The agreement was reached during Tinubu’s state visit to the UK, which Prime Minister Starmer described as “historic” and the first of its kind by a West African leader in 37 years.

Prior to the meeting, Tinubu had stated that discussions with the UK government would centre on trade, economic cooperation, and shared challenges such as security and climate change.

Reacting to the development, the Federal Ministry of Marine and Blue Economy said the port upgrades would boost Nigeria’s standing in regional trade.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, noted that the project would “strengthen Nigeria’s position as a leading maritime hub in west and central Africa”.

Tinubu’s two-day state visit, which began on Wednesday, also includes plans to sign additional agreements aimed at deepening trade and investment ties between both countries.

In a related development, the Nigeria Sovereign Investment Authority (NSIA) signed a memorandum of understanding with the UK’s Asset Green Limited to establish an integrated dairy production platform in Nigeria.