Nigeria has secured a £746 million financing deal backed by the United Kingdom to overhaul its two busiest seaports—Apapa and Tin Can Island—in what is set to become the most ambitious port modernisation programme in nearly five decades.

The landmark agreement, facilitated through UK Export Finance (UKEF), will fund a comprehensive upgrade of the Lagos Port Complex, Apapa, and the Tin Can Island Port Complex—facilities that collectively handle over 70 per cent of the country’s import and export traffic.

The deal is scheduled for formal signing during President Bola Tinubu’s state visit to London on March 18–19, 2026, underscoring deepening economic ties between Nigeria and the United Kingdom and signalling a major boost for the country’s maritime infrastructure drive.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, described the agreement as a turning point for the sector in a statement issued Tuesday by his Special Adviser, Bolaji Akinola.

He said, “This financing agreement represents a defining moment for Nigeria’s maritime sector.

“For decades, Apapa Port and Tin Can Island Port have borne the weight of our national trade, yet their infrastructure has not kept pace with the scale and complexity of modern global shipping. What we are set to do is not merely an upgrade, but a comprehensive transformation that will align our ports with international best practices.”

The Lagos Port Complex, Apapa, established in 1913, remains the country’s oldest and busiest seaport, while Tin Can Island Port, commissioned in 1977, was developed to complement its capacity. Despite their strategic importance, neither facility has undergone a full-scale modernisation of this magnitude, leaving a decades-long infrastructure gap that the new project aims to close.

According to Oyetola, the initiative forms a core component of the Federal Government’s strategy to unlock the economic potential of the marine and blue economy by repositioning Nigeria’s port system for efficiency, competitiveness, and long-term growth.

“Through this historic collaboration with the United Kingdom, we are laying the groundwork for a new era in the management and operation of Nigerian ports.

“Modern infrastructure supported by digitalised and automated processes will significantly enhance efficiency, transparency, and operational reliability. Our objective is clear: to create a port system that is modern, competitive, and capable of serving as a strategic maritime hub for West and Central Africa,” the minister said.

The modernisation programme, he explained, will deploy advanced cargo-handling equipment, expand port capacity, and integrate digital systems aimed at eliminating long-standing operational bottlenecks across the two complexes.

Oyetola noted that industry-wide inefficiencies—particularly prolonged vessel turnaround times and extended cargo dwell periods—are expected to decline significantly once automation replaces manual and paper-based processes.

“Efficiency at the ports is central to the health of the national economy,” he said. “By modernising our infrastructure and embracing digital technologies, we will enable faster clearance of imports and exports, reduce demurrage and logistics costs for businesses, and ensure a more predictable and transparent cargo movement system. These improvements will not only ease trade but will also stimulate economic growth and generate increased revenue for national development.”

Beyond operational gains, the federal government is positioning the upgrade as a strategic lever to strengthen Nigeria’s role within regional and global shipping networks.

He emphasised that improved port performance is expected to attract increased vessel traffic, boost investor confidence, and consolidate Nigeria’s status as a primary maritime gateway for West and Central Africa.

“Our vision is to build a port system that reflects the aspirations of a modern and globally competitive Nigeria.

“The modernisation of Apapa and Tin Can Island ports is a bold and necessary step in that direction. It will enhance the efficiency of our logistics chain, deepen investor confidence, and ensure that Nigeria’s maritime infrastructure is capable of supporting the nation’s long-term economic ambitions,” the minister added. (The Nation)

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