The United Kingdom has guaranteed £746 million to support the redevelopment of two of Nigeria’s major ports in Lagos, in a deal aimed at boosting trade, improving efficiency and strengthening economic ties between both countries.
The agreement, announced on Thursday, will see the modernisation of the Lagos Port Complex (Apapa Quays) and TinCan Island Port Complex through a financing arrangement backed by UK Export Finance, the UK government’s export credit agency.
The project is being coordinated by Citibank London and involves the Nigerian Ports Authority and the Federal Ministry of Finance.
Officials said the deal is expected to support thousands of skilled jobs in both Nigeria and the UK, while also driving investment into key sectors of the economy.
As part of the agreement, at least £236 million of the total contract value will go to British companies, including a £70 million supply deal for British Steel to provide 120,000 tonnes of steel billets for the project.
The steel will be used by construction firms handling the port upgrades.
Speaking on the deal, UK Business and Trade Secretary, Peter Kyle, described it as a major boost for British manufacturing and a reflection of growing economic ties between the UK and Nigeria.
He noted that the agreement would support jobs and reinforce the global competitiveness of UK-made steel.
Nigeria’s Minister of Marine and Blue Economy, Adegboyega Oyetola, said the project would transform the country’s port operations and unlock the potential of the maritime sector.
According to him, the upgrade will reduce cargo delays, cut logistics costs and improve transparency through the introduction of automated and digital systems.
He added that the improved infrastructure would enhance Nigeria’s position as a key maritime hub in West and Central Africa.
The agreement also includes a Memorandum of Understanding between both countries to deepen trade and investment relations and explore future infrastructure opportunities.
Chief Executive Officer of UK Export Finance, Tim Reid, said the deal demonstrates the agency’s capacity to support large-scale projects that benefit both countries.
He added that it would open new opportunities for British exporters while contributing to sustainable economic growth in Nigeria.
Also speaking, British Steel CEO, Allan Bell, described the contract as a record-breaking deal for the company and a significant milestone in its operations.
He said the agreement would support thousands of jobs across its supply chain and mark a shift towards long-term sustainability for the company.
The UK government noted that its export finance support in West and Central Africa has grown significantly in recent years, reflecting increasing demand for trade partnerships in the region.
The deal is expected to improve port efficiency, reduce congestion and strengthen Nigeria’s trade infrastructure, while signalling increased investor confidence in the country’s economy.
