UK, Nigeria Seal £746m Ports Redevelopment Deal to Boost Trade, Jobs

The governments of United Kingdom and Nigeria have signed a landmark £746 million agreement to modernise two of Nigeria’s major seaports, in a move expected to strengthen bilateral trade and create thousands of skilled jobs in both countries.

The deal, announced on Thursday, March 19, is backed by UK Export Finance (UKEF) and will fund the redevelopment of the Lagos Port Complex and Tin Can Island Port Complex in Lagos.

The financing will be delivered through UKEF’s Buyer Credit Facility, coordinated by Citibank (London branch), with the agreement involving the Nigerian Ports Authority and Nigeria’s Federal Ministry of Finance.

Officials say the project represents one of the largest recent trade and investment partnerships between both countries. At least £236 million of the total value will go to British companies through supply contracts.

A major beneficiary is British Steel, which secured a record £70 million contract to supply 120,000 tonnes of steel billets for the project. The materials will be used by construction firms Hitech Nigeria and ITB Nigeria.

UK Business and Trade Secretary, Peter Kyle, described the agreement as a significant boost for UK manufacturing and a testament to the growing economic ties between both nations.

Nigeria’s Minister of Marine and Blue Economy, Adegboyega Oyetola, said the project aligns with the federal government’s strategy to unlock the country’s maritime potential.

He noted that modernising the ports would reduce vessel turnaround time, cut cargo delays, and lower logistics costs for businesses, while improving transparency through automation and digitalisation.

According to him, the upgrades will position Nigeria as a leading maritime hub in West and Central Africa, while boosting revenue generation and easing trade operations.

Alongside the ports agreement, both countries also signed a Memorandum of Understanding (MoU) aimed at deepening long-term cooperation in trade, infrastructure, and investment.

The MoU outlines Nigeria’s priority projects that could receive future UKEF-backed financing, while opening more opportunities for UK companies to participate in Nigeria’s supply chain.

Chief Executive Officer of UKEF, Tim Reid, said the agreement demonstrates the agency’s capacity to support large-scale international projects while driving growth for UK businesses.

Also speaking, Citi’s Global Head of Export and Agency Financing, Richard Hodder, highlighted the bank’s long-standing presence in Nigeria and its role in facilitating the deal.

The agreement signals growing investor confidence in Nigeria’s infrastructure sector and reinforces the country’s commitment to expanding trade partnerships and improving its logistics backbone.

Analysts say the project could mark a turning point in Nigeria’s port efficiency and overall economic competitiveness, while strengthening its position as a key trade gateway in Africa.