£746m UK-backed deal to transform Apapa and Tin Can ports, boost capacity for mega vessels…
The Federal Government has set the second quarter of 2026 as the start date for the long-awaited upgrade of Lagos’ major seaports, with completion expected within four years.
The project, which will focus on the Apapa and Tin Can Island port complexes, is backed by a £746 million export finance agreement recently secured between Nigeria and the United Kingdom.
Under the arrangement, UK Export Finance (UKEF) will provide guarantees for loans supporting the large-scale rehabilitation, while global financial institution Citibank is also involved in structuring the financing.
A key component of the deal includes the supply of 120,000 tonnes of steel by British Steel, under a contract valued at £70 million. In addition, British firms are expected to benefit significantly, with at least 20 percent of the project’s components to be sourced from the UK translating into an estimated £236 million in supplier contracts.
Providing an update on the timeline, Bolaji Akinola, special adviser to the minister of marine and blue economy, said the project is now moving from planning to execution following the conclusion of financing arrangements.
He expressed confidence that physical work will begin in the next quarter, adding that once construction is flagged off, the full upgrade is projected to be delivered within 48 months.
A major highlight of the overhaul is the planned dredging of port channels, a move that will significantly expand vessel capacity. Currently, Lagos ports operate with a draft of about 13 metres, limiting the size of ships that can berth.
Upon completion, the draft is expected to increase to at least 16 metres, enabling the ports to accommodate much larger vessels some capable of carrying between 10,000 and 20,000 twenty-foot equivalent units (TEUs). This upgrade is seen as a critical step toward improving Nigeria’s competitiveness in global shipping and logistics.
Industry stakeholders have welcomed the development, describing it as long overdue.
Boma Alabi, chairman of the Shipping Association of Nigeria, noted that both Apapa and Tin Can Island ports have gone more than 15 years without significant upgrades, despite rising trade volumes and population growth.
She pointed out that Nigeria has lost out on key opportunities over the years, as neighbouring countries that invested in modern port infrastructure have attracted more maritime traffic and economic benefits.
The port modernisation effort aligns with the broader economic strategy of the current administration, which places strong emphasis on infrastructure development as a driver of growth.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has previously stated that such bilateral partnerships are essential for mobilising large-scale investments needed to stimulate economic activity, generate employment, and reduce poverty.
With construction expected to begin soon, the project is being closely watched as a potential turning point for Nigeria’s maritime sector one that could ease congestion, lower shipping costs, and position Lagos as a more competitive hub for regional and international trade.
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