UK and Nigeria Seal Nearly $1 Billion Export Finance Deal to Upgrade Ports
Britain and Nigeria have signed a £746 million ($990.32 million) export finance agreement to support the redevelopment and modernisation of two of Nigeria’s most critical trading hubs: the Lagos Port Complex and the TinCan Island Port Complex. The deal, announced on Thursday, is aimed at enhancing the operational efficiency of the country’s major ports, which play a pivotal role in facilitating trade across West Africa.
Under the terms of the agreement, UK Export Finance (UKEF) will provide guarantees for the investment, ensuring risk mitigation for lenders and investors involved in the project. Citibank will coordinate and arrange the financing, serving as the primary intermediary between British financial institutions and Nigerian authorities.
The arrangement is expected to generate around £236 million in supplier contracts for British companies, strengthening the United Kingdom’s trade and export position. Among the notable beneficiaries is British Steel, which has secured a £70 million contract for the supply of steel products for the port refurbishment projects. The UK government hailed this as a significant boost to the domestic steelmaking sector, coinciding with the unveiling of a new national strategy designed to revitalise the industry and support struggling steel manufacturers.
The agreement was formalised during the state visit of Nigerian President Bola Tinubu to the United Kingdom, underscoring the strategic importance both countries attach to trade, infrastructure, and economic cooperation. Officials from both governments highlighted that the project will not only modernise port infrastructure but also improve cargo handling capacity, reduce congestion, and increase the efficiency of import and export operations.
In addition to enhancing trade flows, the redevelopment is expected to create new business opportunities for local and international suppliers, improve the ease of doing business, and stimulate job creation in the construction and logistics sectors. For Nigeria, the modernisation of these ports is seen as an essential step toward strengthening its position as a regional trade hub, while for the UK, it represents an opportunity to deepen commercial ties and support domestic industries through overseas contracts.
Overall, the deal marks a milestone in UK–Nigeria cooperation, blending infrastructure development with trade promotion, and reflecting a broader commitment to leveraging export finance as a tool to stimulate economic growth and bilateral relations.
