AWC Maritime Desk
Abuja/London, March 2026 — It’s no longer news that Nigeria has secured a landmark £746 million port modernisation agreement with the United Kingdom, in a strategic move aimed at transforming the country’s busiest seaports and boosting trade efficiency.
The deal, witnessed by President Bola Ahmed Tinubu during his state visit to the UK, follows approval by the Federal Executive Council (FEC) to upgrade critical port infrastructure.
Details:
Financing and Structure
The agreement includes:
£746 million total loan guarantee (approximately $902 million), backed largely by UK Export Finance
Coverage of over 96% of project costs for Apapa and Tin Can Island ports
£236 million in UK supplier contracts, strengthening bilateral industrial cooperation
Additionally, about 120,000 tonnes of British steel will be supplied under a £70 million contract to support Nigerian construction firms involved in the project.
Operational Transformation
The modernisation is expected to significantly improve port efficiency:
Cargo dwell time projected to drop from 15 days to 1–5 days
Transition from manual, paper-based processes to automated systems
Container capacity expected to increase by over 85%
Economic Impact
Officials project broader economic gains, including:
19.6% growth in non-oil exports, driven by improved logistics
Reduced logistics costs from about $2,000 to between $1,000 and $1,500
Enhanced port competitiveness, with Nigeria aiming to improve its global port ranking beyond regional peers such as Tema and Abidjan
The project will also deepen Nigeria’s role as a trade hub under the African Continental Free Trade Area (AfCFTA).
Infrastructure Upgrades
Key improvements will include:
Increased berth depth to 16.5 metres, allowing larger vessels
Expansion of cargo handling capacity
Integration of modern port technologies
The Nigeria-UK port modernisation deal marks a major step toward revamping maritime infrastructure, reducing trade bottlenecks, and positioning Nigeria as a leading logistics and export hub in West Africa.
