FG Announces Start Date for Apapa, Tin Can Ports Upgrade, Sets 48-month Timeline
- The federal government says Apapa and Tin Can port upgrades will begin in Q2 2026
- The project is backed by a £746 million export finance deal between Nigeria and the UK
- UK Export Finance will guarantee loans, while British Steel will supply materials
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology, and macroeconomic trends in Nigeria.
The federal government has announced that the long-awaited upgrade of Apapa and Tin Can Island ports in Lagos will begin in the second quarter of 2026, with completion expected within 48 months.
The development follows a £746 million export finance agreement signed between Nigeria and the United Kingdom on March 19 to support the rehabilitation of the two major port facilities, PUNCH reported.
Source: Getty Images
UK-backed financing to support port redevelopment
Under the agreement, UK Export Finance (UKEF) will guarantee loans for the refurbishment of the Apapa and Tin Can Island port complexes.
The deal also includes a contract for British Steel to supply 120,000 tonnes of steel valued at £70 million for the project.
Officials said the arrangement is expected to generate about £236 million in supply contracts for British firms, with at least 20 per cent of project components to be sourced from the UK.
Work expected to begin next quarter
Speaking on Channels Television, Bolaji Akinola said the project would commence once the financing processes are fully concluded.
Akinola expressed optimism that construction would begin in the next quarter, noting that the agreement with Citibank and UKEF has addressed funding concerns.
He added that once work begins, the project is projected to be completed within four years.
Upgrade to allow larger vessels
The special adviser explained that the upgrade will include dredging of port channels to accommodate bigger vessels.
According to him, the current draft level at Lagos ports, which stands at about 13 metres, will be increased to at least 16 metres after the upgrade.
This improvement, he said, will enable the ports to receive larger ships carrying between 10,000 and 20,000 twenty-foot equivalent units (TEUs).
Stakeholders highlight need for modernisation
Reacting to the development, Boma Alabi said the project offers renewed hope for the maritime sector.
Alabi noted that both Apapa and Tin Can Island ports have not undergone major upgrades in over 15 years, despite increasing trade volumes and population growth.
She added that neighbouring countries that have invested in port infrastructure are already benefiting from improved trade capacity.
Meanwhile, Wale Edun said the agreement aligns with the government’s focus on infrastructure, energy, and industrial development.
Edun explained that strengthening bilateral partnerships will help attract the level of investment needed to stimulate economic growth, create jobs, and reduce poverty in line with the administration’s “renewed hope” agenda.
Source: Getty Images
Dangote hails Tinubu’s UK visit
Legit.ng earlier reported that Nigerian industrialist, Aliko Dangote, praised President Bola Tinubu’s UK visit, describing it as a boost for investment opportunities.
The chairman of Dangote Group of Industries described the £746 million infrastructure agreement as a strong vote of confidence in Nigeria.
Dangote stressed that securing such funding from the United Kingdom was not easy, especially given global economic pressures. He explained that the development demonstrates confidence in Nigeria’s leadership and ongoing infrastructure projects.
Source: Legit.ng
