By Bassey Udo
Nigeria and the United Kingdom on Thursday announced the signing of a £746 million ports redevelopment agreement in London.
The deal marks one of the largest trade and investment partnerships between two nations in recent years.
Backed by UK Export Finance, the agreement would facilitate the modernization of two of Nigeria’s major commercial ports, while driving significant economic benefits in the UK and Nigeria, including thousands of skilled jobs supported across both countries.
The agreement signing included a new UK-Nigeria Memorandum of Understanding, committing both governments to deepen future trade, investment, and industrial collaboration.
A statement from the British Embassy described the agreement as a major vote of confidence in UK manufacturing as UK Export Finance guarantees £746 million ($902m) to fund the redevelopment of two of Nigeria’s major trading ports.
A record-breaking £70 million ($95m) contract for British Steel is the result of at least £236 million of the overall deal being invested into British companies.
Under the deal, thousands of skilled UK and Nigerian jobs would be supported and hundreds of millions invested into the economy as a historic financing deal signed between the UK and Nigeria.
The £746 million sum would be used to support the refurbishment of two of Nigeria’s major national maritime infrastructure facilities located in Lagos, namely the Lagos Port Complex (Apapa Quays) and the TinCan Island Port Complex.
The redevelopment of the ports would be delivered through UKEF’s Buyer Credit Facility, coordinated and arranged by Citibank, N.A London Branche. Island Port Complex.
The agreement between UK Export Finance, the UK government’s export credit agency (UKEF), the Nigerian Ports Authority (NPA) and the Federal Ministry of Finance, would deliver significant benefits for British businesses, with at least £236 million of supplier contracts directed to British companies.
British Steel would supply 120,000 tonnes of steel billets to construction companies, Hitech Nigeria and ITB Nigeria, for the ports development deal, amounting to a £70 million contract that represents British Steel’s largest export order backed by UKEF.
The deal is coming on the heels of a recent Government’s newly announced Steel Strategy which seeks to revitalise the steel sector.
Business and Trade Secretary, Peter Kyle, said: “Hot on the heels of our landmark Steel Strategy, this is a major win for British Steel made possible by UK Export Finance which is testament to the quality of UK-made steel and the booming UK-Nigeria relationship.
“Through our new Strategy we’re backing British steelmakers for long-term success at home and abroad, and this contract will reinforce British Steel’s world-class expertise while supporting jobs and growth in Scunthorpe.”
Nigeria’s Minister of Marine and Blue Economy, Dr. Adegboyega Oyetola, who signed the agreement on behalf of Nigeria said the modernisation and upgrading of Nigeria’s ports represents a major step forward for the country and aligns closely with the Federal Government’s commitment to unlocking the full potential of the marine and blue economy.
“Through strategic partnerships such as this with the United Kingdom, we are laying the foundation for a new era of efficiency, transparency and competitiveness in Nigeria’s port system. Modern infrastructure, supported by digitalised and automated processes, will transform the way our ports operate and strengthen Nigeria’s position as a leading maritime hub in West and Central Africa,” the Minister said.
“Nigeria’s port operations will be transformative. Turnaround times for vessels and cargo dwell times within the ports are projected to fall sharply as automated processes replace paperwork-heavy procedures and as expanded capacity removes longstanding bottlenecks.
The modernised infrastructure will enable faster clearance of imports and exports, reduce demurrage and logistics costs for businesses, significantly improve the predictability and transparency of cargo movement and generate more revenue for national development,” he added.
Alongside the NPA deal announcement, the UK and Nigeria would sign a Memorandum of Understanding (MOU) establishing a framework for potential future collaboration.
The MOU sets out Nigeria’s priority project pipeline, seeking UKEF finance and support, with the UK set to benefit directly through substantial supply chain participation. The signing signals a clear commitment from both governments to deepen their long-term partnership on trade, infrastructure and sustainable growth.
Hitech Nigeria and ITB Nigeria have been at the forefront of some of Nigeria’s most transformative infrastructure projects and advanced engineering.
The Steel Strategy highlights one of many initiatives that the Government is already doing including those on energy prices, skills, procurement and financing support of projects such as the Scrap Metal Taskforce and the new Trade Defence Measures.
British Steel CEO, Allan Bell, said:“This is a record-breaking contract for British Steel and a major boost to our 4,000 employees and many more people in our supply chains.
“After government intervention last April, everyone at British Steel has worked hard to stabilise the company. This deal represents us moving from stabilisation to building long-term sustainability for the business.
“As one of the largest ever orders for billet in the history of this company, it marks a tremendous vote of confidence in British Steel and UK manufacturing. And as the biggest order we have ever secured with UK Export Finance, it demonstrates how we are working with the UK Government to meet the global demand for our products.
“We thank the government for its support and look forward to working with Hitech Construction Africa Ltd on this transformative project.”
Global Head of Export & Agency Financing at Citi Bank, Richard Hodder, said: “Citi has been present in Nigeria for over 40 years and is delighted to support NPA and the Federal Government of Nigeria in the financing of this critical infrastructure project which will deliver significant economic benefits to the Nigerian economy over the coming years. As the Coordinator of the transaction, we are pleased to have worked in close partnership with the team at UKEF to deliver one of the largest Export Credit Agency supported Buyer Credit Facilities ever seen in West Africa.”
The deal represents UKEF’s growing presence in the region. Since 2018, UKEF support for West and Central Africa has grown by over £3 billion, reflecting the region’s appetite for diversified trade partnerships and the UK’s commitment to being a trusted partner for long-term investment.
CEO at UK Export Finance, Tim Reid, said: “This deal represents a milestone for UK-Nigeria trade relations and demonstrates the full capacity of UK Export Finance to unlock transformational opportunities for British businesses, while supporting sustainable economic growth in key markets.
“With over £200 million feeding back to British companies, including one of the largest steel billet contracts in British Steel’s history and our new Memorandum of Understanding, UKEF are laying the foundations for a deeper, long-term relationship with Nigeria, that will open doors for British exporters across the entire region.”
Together, these announcements signal to international markets that Nigeria is open for trade and investment, demonstrating credible government-to-government delivery and building wider investor confidence around Nigeria’s trade infrastructure and growth agenda.
UK Export Finance (UKEF) is UK’s export credit agency and a government department that works with over 100 private credit insurers and lenders to help UK companies win, fulfil and get paid for export contracts.
In 2024/2025, UKEF provided a record £14.5 billion in new financing, helping over 667 UK companies to export and grow and has supported up to 70,000 jobs.
UKEF has not provided direct funding but has acted as a guarantor through a Buyer Credit facility, which allows an overseas buyer to borrow money from a bank to pay a UK exporter, with UKEF guaranteeing the loan.
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