Britain and Nigeria Sign £746 Million Export Finance Agreement to Modernize Lagos and Tin Can Island Ports
Britain and Nigeria have announced a £746 million ($990.32 million) export finance agreement to fund the redevelopment of two of Nigeria’s key trading hubs: the Lagos Port Complex and the Tin Can Island Port Complex.
The agreement comes as President Bola Tinubu undertakes the first Nigerian state visit to the United Kingdom in 37 years, aimed at strengthening economic cooperation and deepening diplomatic relations between the two countries.
The Lagos Port Complex in Apapa, established in 1913, is Nigeria’s oldest and busiest seaport.
To reduce congestion and operational pressure on Apapa, the Tin Can Island Port Complex was developed and officially commissioned in 1977, significantly expanding the nation’s maritime capacity.
Together, these two ports handle more than 70 percent of Nigeria’s cargo traffic and form the backbone of the country’s shipping and logistics network.
Despite their strategic importance, both facilities have faced decades of underinvestment and limited modernization, resulting in operational inefficiencies and delays.
Nigeria’s Minister of Marine and Blue Economy, Adegboyega Oyetola, described the planned refurbishment as transformative for the country’s trade infrastructure.
He noted that vessel turnaround times and cargo dwell times are expected to decline significantly once the upgrades are completed, improving efficiency across the supply chain.
Boost for British Suppliers
The financing package, guaranteed by UK Export Finance and coordinated by Citibank, is also expected to create substantial commercial opportunities for British suppliers.
The agreement is projected to generate approximately £236 million in supplier contracts for UK-based companies.
Among the anticipated beneficiaries is British Steel, which is set to secure a contract valued at about £70 million.
The UK government has described the development as a meaningful boost to the domestic steel sector, aligning with broader efforts to support and revitalize the industry.
Britain is home to a large Nigerian diaspora, estimated at around 300,000 people. This community plays a significant role in strengthening economic ties between the two nations.
It is also a major source of remittances to Nigeria, contributing roughly half of the country’s annual inflows.
In 2024, remittances to Nigeria reached nearly $21 billion, providing a critical source of foreign exchange that supports households, businesses, and overall economic growth.
