The Federal Government has defended its £746 million ports upgrade agreement with the United Kingdom, stating that the deal is balanced and designed to deliver significant economic benefits to Nigeria despite concerns that foreign partners may gain more.
The agreement, valued at about $997 million, focuses on modernising two of Nigeria’s busiest ports—Apapa Port and Tin Can Island Port—with the aim of improving trade efficiency, reducing delays, and creating jobs.
Responding to criticism, the Federal Ministry of Finance said the partnership is not one-sided, emphasising that both Nigeria and its international partners stand to benefit in complementary ways.
“This is not a zero-sum arrangement. Global partnerships deliver different but complementary benefits,” the ministry stated.
According to the ministry, Nigeria will benefit from modern and efficient port infrastructure that will boost productivity and ease congestion. It added that businesses would enjoy lower logistics costs, while thousands of jobs are expected to be created across construction, logistics, and related sectors.
The government also noted that the project would strengthen Nigeria’s trade position, opening up opportunities for local businesses under the African Continental Free Trade Area and in global markets, while enhancing the country’s attractiveness to investors.
On the gains for foreign partners, the ministry said they would be involved in financing and project delivery, while also accessing industrial and commercial opportunities.
Summarising the expected outcome, the ministry said, “Nigeria secures critical infrastructure upgrades without delay, enabling faster economic transformation.”
The government maintained that the deal directly addresses inefficiencies at Nigerian ports, noting that Apapa and Tin Can Island ports currently handle about 70 per cent of the country’s trade.
A key objective of the reform is to significantly reduce cargo clearance time. Currently, cargo dwell time ranges between 18 and 21 days—far above the global average of about four days. The government aims to cut this to less than seven days by 2026.
“This reform programme is designed to reduce cargo dwell time from 18–21 days to under seven days by 2026, align Nigeria closer to global benchmarks, and deliver faster clearance times, lower logistics costs, and improved reliability for businesses,” the ministry said.
The port upgrade forms part of a broader reform programme that includes the rollout of the National Single Window, a digital system aimed at simplifying trade processes.
Under this platform, traders will be able to submit documents electronically, process permits, and make payments more efficiently. Officials say this will address documentation and regulatory delays, which currently account for about 73 per cent of cargo hold-ups.
The government stressed that both physical infrastructure upgrades and digital reforms must work together to achieve meaningful results.
“Without the National Single Window, ports remain congested due to slow documentation. Without port upgrades, digital efficiency is undermined by physical bottlenecks. Together, they deliver end-to-end efficiency across Nigeria’s trade value chain,” the ministry added.
The reforms are expected to have wide-reaching economic impact. Importers and manufacturers will benefit from faster access to raw materials and reduced costs, while exporters gain improved access to international markets.
For the broader economy, the government projects lower cost of goods, increased trade volumes, and higher revenue through improved compliance and efficiency.
The initiative is being implemented under the administration of President Bola Ahmed Tinubu as part of efforts to improve the business environment, attract investment, and drive economic growth.