Last week, Nigerian President Bola Tinubu visited the United Kingdom, which has agreed to help refurbish Nigeria’s major trading ports, including the century-old Apapa Quays and Tin Can Island port near Lagos.
The £746 million (€860 million) deal, backed by UK Export Finance, is described by Marine and Blue Economy Minister Adegboyega Oyetola as “transformative.” The planned upgrades aim to digitize and automate processes, expand capacity, and cut vessel turnaround and cargo dwell times, which currently average 18–21 days compared with a roughly four-day benchmark.
Apapa and Tin Can Island are Nigeria’s busiest ports, handling more than two-thirds of goods trade and over 80% of imports through Lagos. Chronic congestion, decaying infrastructure, shallow channels that limit vessel size, high security costs, bureaucratic delays, and extortion along port corridors have driven importers to use more efficient ports in Benin, Togo and Ghana. Local reports estimate Nigeria loses about €11 million per day because of these inefficiencies.
Officials hope modernized infrastructure and automated clearance will reduce demurrage and logistics costs. UK firms are expected to win at least €272 million in contracts under the agreement, including an about-€80 million order for British Steel to supply 120,000 tonnes of steel billets. Critics, including the opposition African Democratic Congress, say the deal favors UK companies.
Analysts caution that infrastructure fixes alone will not solve deeper, systemic problems. “Right now, Nigerian ports are viewed as expensive chokeholds rather than efficient gateways,” said Ikemesit Effiong of SBM Intelligence. He warned that corruption, bureaucratic rent-seeking and cartels that control truck access must be tackled, or upgraded assets will underperform and debt will deepen.
Supporters say a successful rollout could make Nigeria a major logistics hub for West Africa. “Nigeria has the market size, the location, and trade potential to be a major logistics hub,” said Lagos-based analyst Victor Ejechi. More predictable, less congested ports could boost competitiveness and better serve landlocked neighbors.
But Effiong warned that without reforms to governance and culture, the project risks entrenching problems: manufacturers could continue relocating to ports such as Tema and Lome, and consumers would face higher import costs despite new infrastructure.
The deal’s long-term benefits, analysts say, will depend on operational sovereignty, the ability to align port management with Nigeria’s trade interests, and sustained efforts to root out corruption and reduce rent-seeking behaviors.
Edited by Cai Nebe